Financial planning refers to a scheme or method to plan your investments in the short and long terms. Either, you can make your financial plans yourself or you could get the help of a financial planner. A financial planner would be in a better position to help you plan your future financial investments, such as putting aside a certain amount of your finances for old age, or finance the college education of your children and so on. Today, there is a great demand for financial planners around the globe. The skills required if you are planning for a career in financial planning are excellent communication and interpersonal skills.
Various Careers in Financial Planning
The two main careers that are suitable for people who are interested in taking up careers in financial planning are financial planner and financial analyst.
Financial Analysts are the people who analyze financial statements of an industry or a company belonging to a particular industry. Financial analysts study and also analyze the statements such as sales, cost, tax rates and also the various expenses of an organization to evaluate a firm’s current and projected value. There is a great demand for financial analysts in organizations such as banks, mutual funds, insurance companies, security firms and so on. Financial analysts are in demand in organizations that assist people through the financial process.
Financial Planner is also known as financial advisor or financial consultant. A financial planner helps his client in planning his finances. He would also offer advise on various types of long term and short term planning. A financial planner would focus on areas like real estate planning, retirement plans, education plans as well as general investment plans. There are financial advisors who concentrate on particular areas of financial planning such as asset management and protection, retirement planning and estate planning. While there are many financial planners who sometimes act as stock or insurance brokers dealing with various financial and investment products such as stocks, shares, mutual funds, insurance and so on.
Qualification and Skills Required
Whether you are planning to become a financial analyst or a financial planner, you need to possess a bachelor’s degree in finance.
To become a financial analyst, apart from bachelor’s degree you need to possess a degree in business administration and also, specialize in accounting, finance or statistics. A specialized training in economics is strongly suggested. Additional courses that are recommended include risk management, bond valuation and options pricing.
One of the skills that should be possessed by a financial analyst is the drive for research. He should have a keen interest to pay attention to minute details and also understand tax laws and have wide knowledge about the money markets.
It is strongly recommended that financial planners and advisors be certified. It would be a good idea to get a "Certified Financial Planner" designation, a certification offered by the "Certified Financial Planner Board of Standards, Inc".
The common skills that are required to become either a financial advisor or a financial analyst are analytical and problem-solving skills. Apart from these skills, you also need to have a good presentation skills, self-confidence and an ability to work independently.
By Maya Pillai
