Have you ever asked yourself "Will I have enough money when
I get older?" or "Will I ever be able to retire?"
These are questions millions of people ask themselves every
day-financial hotlines hear these inquiries from everyone from
millionaires to people who are financially pressed. And Alan
Greenspan's ominous warning about the Social Security system
needing "reform" swelled these concerns for most of the
77 million members of America's boom generation, who, financial
planners say, are saving just one third of what they'll need to
retire comfortably.
As a result of these underlying trends, people have a pressing
need for and are seeking knowledgeable and objective professional
financial advice. Paula Hogan, a Milwaukee-based certified
financial planner, confirms: "Baby boomers are asking for
advice." And while financial planning used to be a service
primarily for the wealthy, financial planners are now serving
middle class clients, too, a relationship that's most often
initiated during a time of some major change like a marriage, a
promotion or a death in the family.
While insurance companies and other major concerns are marketing
financial planning services, the field is still mainly populated by
independent practitioners. People with backgrounds in accounting,
law, insurance or banking have a leg up because they usually have
some knowledge of financial planning and financial products. But
the key characteristics needed, regardless of your prior
background, are these:
- The willingness to develop technical expertise and be a junkie
for information because you must stay informed to keep up with a
changing field and be a trend spotter for your clients
- Good listening skills
- The ability to initiate and develop long-term client
relationships
- Personal trustworthiness and the ability to convey that in the
manner you present yourself
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You'll also need credentials because virtually all states
and the federal government regulate what financial planners
do-providing investment advice or selling securities or insurance.
Licensed accountants and attorneys are able to deal with most
aspects of financial planning with their existing licenses.
Because financial planning is a personal service, the key to
building a practice involves generating referrals from
professionals such as lawyers and accountants and, later, satisfied
clients. Face-to-face networking in organizations as well as
participating in business referral organizations are also important
ways to jump-start a new practice.
If becoming a financial planner interests you, you can begin
your research by reviewing the information available at the Web
site (www.cfp.net) of the Certified Financial Planner Board of Standards, which
provides a directory of education programs located throughout the
United States.
Paul and Sarah Edwards are the authors of Best Home Businesses for the 21st Centuryand 14 other books.