Key Takeaways
- Financial planners help clients achieve financial goals like saving, investing, and retirement planning.
- A bachelor’s degree is usually sufficient, but higher degrees and certifications are beneficial.
- Financial planners typically earn income through fee-based services and product commissions.
- Essential skills include building client relationships and a passion for personal finance.
- Licensing exams, such as Series 7 and Series 66, are needed for financial planning roles.
A financial planner is a professional who helps individuals and businesses manage and plan their financial futures.
Key roles of a financial planner include advising on savings, investments, and retirement planning.
The median salary for a financial planner ranges from $89,000 to $102,140, according to Glassdoor and the U.S. Bureau of Labor Statistics, respectively.
The education requirement to become a financial planner is not stringent. Typically, a bachelor’s degree is enough; however, an MBA and further certifications like CFP help in landing jobs. Licensing like Series 7 or Series 66 may also be required.
This article will provide further details on the roles, responsibilities, education, and career growth opportunities within financial planning.
Fast Fact
A financial planner is also called a financial advisor, but not vice versa. Every financial planner is a type of financial advisor, but not every financial advisor is considered a financial planner.
Understanding the Financial Planner’s Role
Financial planners work with individuals, families, and businesses to help these clients understand their financial circumstances and how to reach their short-term and long-term financial objectives.
The clients provide relevant financial information during an initial interview, answering questions about their total annual income, debt obligations, monthly expenses not related to debt, current investment holdings, savings account balances, tax liabilities, and insurance plans. Financial planners analyze this information and present realistic, meaningful recommendations based on their clients’ financial situations and goals.
Financial planners discuss many personal finance topics with their clients, including debt management, savings objectives and strategies, and personal and family budgeting. They also discuss investment strategies, estate planning considerations, protection planning through insurance, and retirement accumulation and distribution tactics.
Financial planners may provide tax efficiency information, but they do not typically deal with tax returns. A financial planner working with a business or an institutional client may analyze and provide guidance on topics such as cash flow, projected revenue, debt management, or employee benefits. Each of these aspects plays a role in an individual’s or a business’s overall financial well-being, so financial planners may have a substantial impact on a client’s financial future.
Prospecting, which is the process of finding new clients, is a substantial part of a financial planner’s job. It often involves networking with other established professionals, such as Certified Public Accountants (CPAs) or estate planning attorneys. Financial planners can also attend and make connections at social or charitable events. The prospecting process ensures that financial planners cultivate relationships with their clients, thereby keeping their retention rates high.
Educational Pathways and Licensing for Financial Planners
The financial planning career path does not require any formal higher education, but a bachelor’s degree is recommended. A graduate-level degree, such as a Master of Business Administration (MBA) with a focus on finance or marketing, may prove beneficial to an individual who wants to establish a financial planning firm. However, an advanced degree is not required for success.
Financial planners must also hold certain licenses to provide advice and implement specific securities- or insurance-related transactions. Securities licenses often include the Financial Industry Regulatory Authority (FINRA) Series 7, which tests knowledge of the securities industry and certain investment-related transactions, including the sale of variable annuities, options, government securities, municipal bonds, and corporate securities.
A FINRA Series 66 license may also be required, which is the North American Securities Administrators Association (NASAA) exam. Each FINRA license has continuing education requirements to maintain good standing with the regulatory body.
Additional certifications may help advance a financial planning career. For example, the financial industry and prospective clients hold the Certified Financial Planner (CFP) designation in high regard. A bachelor’s degree, an intense six-hour exam, and continuing education are required to earn a CFP designation.
Essential Skills for Financial Planning Success
Successful financial planners quickly build strong relationships with their clients. Establishing connections with others is necessary for both the networking and client retention aspects of their career. Similarly, clients have to trust that their financial planner has their best interests in mind.
Financial planners thrive when they have a deep knowledge of and passion for personal finance. Several factors play a part in creating and implementing a financial plan, and a financial planner must be well-versed in financial topics. Additionally, financial planners must be able to meaningfully interpret their clients’ financial data. The most successful financial planners can analyze and retain a substantial amount of information.
Financial Planner Salary Insights
Financial planners in the United States earn a median base salary of approximately $89,000 as of January 2026, according to Glassdoor. However, most of a financial planner’s annual income comes from a combination of fee-based planning services and product commissions, such as the sale of investment securities, annuities, life or disability insurance, and mutual funds or exchange-traded funds (ETFs). According to the U.S. Bureau of Labor Statistics, as of May 2024 (its most recent data available), the total compensation for a financial planner ranged from roughly $49,990 to more than $239,200.
Fast Fact
The median annual wage for a personal financial advisor as of May 2024 was $102,140.
A financial planner who works for a larger investment firm or insurance company may earn a lower commission payout than one who runs their own firm. However, the benefits of profit-sharing plans, health insurance subsidies, and education reimbursement can offset the lower commission payout over time.
The Bottom Line
The education requirements to become a financial planner are not high—having a bachelor’s degree will suffice. However, higher degrees and certifications help in building a stronger career.
To become a financial planner, an individual needs to demonstrate knowledge of the industry and personal finance, as well as social skills. Financial planners help individuals to reach their financial objectives, including saving, investing, and retirement planning, which can be a rewarding career.
Depending on the region a financial planner works in and the type of company, the salary can vary widely. However, in most cases, being a financial planner can be a lucrative career.
