Changing Careers? Consider Financial Planning

If you are thinking about a career change, consider financial planning. Based on a composite of responses in the 2024 Survey of Trends in the Financial Planning Industry, which was published by the College for Financial Planning®—a Kaplan Company, a sizable majority of respondents are satisfied with their careers. This article explains what financial planning is, why it might be a good career change, and how you can make the change.

About Financial Planning

Professionals in the financial planning field help clients with investment decisions, taxes, and selecting insurance policies and retirement plans. They work with their clients to create comprehensive plans for meeting their long-term personal financial goals, such as retirement, college tuition, business startup, a home, and so on. While no two days will ever be the same, much of the job involves meeting with clients, analyzing financial information, and researching new opportunities. The most recent data from The Bureau of Labor Statistics in the U.S. estimates that the employment of personal financial advisors could grow 15 percent from 2021 to 2031, much faster than the average for all occupations.

Career Changers

Answers to the questions about why respondents became financial planners indicate that 28 percent joined their financial profession because they were looking to help others. One respondent said, ““I wanted to help people succeed in an area of life where many struggle.”

21 percent say they they hold a passion for the financial market and enjoyment for the subject. 

8 percent  reported that they “fell into” their financial profession or joined the field due to the benefits offered by the job.

While 7 percent of respondents joined their financial profession for a career change, 6 percent had a previous similar career or  related education.

Financial planning has staying power as a career. Over one third  of survey responders have been working in the financial planning industry for 10 or more years. 

Before You Commit to Financial Planning as a Career Change

Before you jump into financial planning, we advise you to work your way through these five steps for a smooth and successful transition:

1. Ask yourself why: Create a list of reasons why you want to change careers and why financial planning appeals to you, along with what motivates you. According to the survey, a passion for helping people and an interest in finance or financial planning are two necessary qualities.
2. Research financial planning: Personal financial planners, financial advisors, wealth managers, asset managers, and other similar roles are all part of financial planning. Learn as much as you can about each to get a sense of which role appeals to you.
3. Informally interview people in financial planning: Learn from others in the field. Use contacts, LinkedIn, and online research to find people who may be willing to talk with you about whether this is an industry you would like to enter.
4. Build relationships with financial planning contacts: Look for networking and Meetup groups and attend their events. Join LinkedIn groups and participate in discussions. These activities will help you build a solid list of contacts.
5. Inventory your current skills: Before you decide that your experience does not relate to financial planning, remember the person who was in the music industry and switched. If you have experience working with customers, have made your own financial plan, or have a deep interest in finance topics, you have enough to get started. There is education to help you fill the other gaps.

How to Become a Financial Planner

Because financial planning is such a broad field, the steps for landing a job in a given role can differ. However, these three basic tips can apply to many different roles:

• Earn a bachelor’s degree: Many practicing financial planners majored in some type of business or finance program.
• Find an entry-level finance job: Consider looking on job websites, and make sure you are prepared if you are asked for an interview.
• Earn the necessary licenses and consider certification: Earning the CFP® mark can help you specialize or differentiate yourself from your competition. If the role you want involves selling securities or insurance, you’ll need a license.

Ready to Make the Switch?

If a job in financial planning seems like a good fit for your career change, the College for Financial Planning®—a Kaplan Company can help you learn more and get started.