what is a financial planner?
As a financial planner, you help individuals and businesses chart a course for their financial goals. Your job is to assist clients in defining their financial goals and create a road map for achieving them. A financial planner helps with budgeting and finding creative ways to save money. You also explore ways to minimise tax burdens and improve returns on investments.
Financial planning goals include investing for retirement, buying a new home and determining the best insurance products. As a financial planner, you use your expertise to analyse clients' financial needs and develop a plan. This involves helping them optimise their budgets and expenses and providing strategies for paying off debt. A financial planner also advises on the financial products or investments that help clients accomplish their dreams.
Unlike financial advisors who offer general information on managing investments and arranging insurance coverage, financial planners provide a specialised service. A financial planner ensures the client is satisfied with the financial plan. In contrast, a financial advisor is focused on the investments and often acts as a stockbroker.
financial planner jobsaverage financial planner salary
A financial planner receives an average remuneration package of $135,000 - 140,000 per year. Entry-level financial planners with minimal experience take home a lower salary of $90,000 - 110,000 annually, while senior workers earn a salary of $150,000 yearly. The salary range depends on the qualifications, industry experience and size of the company you work for. Financial planners may also receive commissions from insurance or financial service companies. Some companies offer bonuses at the end of the year instead of commissions.
what factors affect the salary of a financial planner?
Most companies pay workers based on their experience and qualifications. Entry-level financial planners earn less than experienced ones. Your qualifications also impact your salary prospects. For instance, certified financial planners command higher salaries than those without certifications.
The company size also influences your salary. For instance, if you work for a small investment or insurance company, they don't have the resources to pay high salaries. However, working for established financial service companies increases your earnings since they have greater resources.
Want to know what you will earn as a financial planner? Check out what you are worth with our salary checker.
types of financial planners
Some types of financial planners include:
- certified financial planner: you provide financial advice to individuals or businesses. You act in the client's best interests, following the stipulated code of ethics. Unlike other financial planners, you receive remuneration on a fee-only basis. You don't advertise a company's financial products to clients to earn a commission.
- investment adviser: you provide advice on buying or selling securities. Sometimes, you buy or sell securities on behalf of your client through a brokerage service. Since you adhere to fiduciary standards, your advice should be in the client's best interests.
- wealth manager: you deal with clients with a high net worth as a wealth manager. That means you specialise in financial planning aspects for the wealthy like risk management to preserve assets, estate planning and legal planning.
working as a financial planner
Financial planners are investment professionals with expertise in planning and forecasting market trends to assist in investment choices. If this is your career, read on for insights on financial planners' daily tasks and work environments.
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financial planner job description
The specific duties of financial planners vary depending on the client. However, standard tasks include:
- assessing a client's financial situation: before providing professional advice on investments and wealth management, you conduct an assessment. You evaluate your client's assets and investments to determine their financial standing. You also discover your client's financial goals, risk appetite and preferred investments.
- creating financial plans: when your client has defined their goals for investment or saving, you help them create a plan for achieving them. For instance, if your client plans to buy a house, you develop a plan that allows them to save money for down payments and increase their income to finance a loan.
- developing budgets: your job involves assisting clients with creating personal budgets. Budgeting is sound financial planning that allows the client to track the financial plan's performance. The aim is to establish saving patterns, minimise or control expenses and develop ways to accumulate wealth.
- making recommendations on investments: as a financial planner, you provide investment and insurance services by recommending the best financial products that align with the client's goals. You also use your knowledge of market trends to advise clients on the best time to buy or sell a security.
- explaining financial laws and tax legislation to clients: a financial planner has an in-depth understanding of financial markets and legislation. You are up-to-date on the current tax legislation and can explain the new tax concepts and financial management laws. You should also regularly communicate changes affecting a client's financial position.
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work environment
A financial planner works in financial services or insurance industries. Some retirement service providers also hire financial planners. You spend most of the day on your desk reviewing clients' financial information or analysing data on the performance of their investments. You also hold meetings with clients in your office to discuss their options and develop financial plans. Sometimes, you travel to meeting venues. Remote work or work-from-home opportunities are available since you can complete your work online.
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who are your colleagues?
Depending on your employer and the industry you work in, your colleagues might include financial advisors, financial consultants and client services managers. You might also be working in close proximity to paraplanners and mortgage brokers, as well as other specialists that could include, but not limited to, finance managers, auditors and investment advisors.
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work schedule
Financial planners work full-time schedules of around 40 hours a week. Independent financial planners have flexible work schedules and can work part-time or as freelancers. Most financial planners work the traditional business hours, but overtime work and evening meetings are quite common.
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job outlook
As a financial planner, you have a promising career with a projected job growth rate of 8.2% in the next five years. Financial planning also offers multiple opportunities for career progression, from becoming an investment adviser to a financial advisor. Most financial planners improve their skills to become certified financial planners before joining top corporate positions. After years of experience, financial planners can work independently or provide financial consultancy services.
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advantages of finding a financial planner job through randstad
Finding your financial planner job through Randstad provides essential benefits such as:
- a wide variety of training and development opportunities
- an experienced contact person to provide help if needed
- a range of opportunities in your area
- get paid weekly or monthly, depending on the job
- temporary and permanent contracts
Thousands of people earn a permanent contract with great employers every year thanks to a temporary job found through Randstad.What's more, many companies recruit their permanent employees through Randstad too.
education and skills
Some of the qualifications for becoming a financial planner include:
- bachelor's degree: to work as a financial planner in Australia, you need specific expertise and knowledge. Completing an accredited degree like a bachelor of business in financial planning accredited by the Australian Securities and Investment Commission (ASIC) equips you with the knowledge to provide sound advice. The undergraduate degree takes three years and prepares you for the next step of becoming a certified financial planner.
- professional experience: when you finish the degree course, look for an entry-level job to gain experience. Your employer should possess an Australian Financial Services Licence (AFSL), which is required by law. You should work under them for a year to qualify for an ASIC licence.
- certification: aside from having a licence, you can improve your skills by obtaining a certificate from the FPA (Financial Planning Association of Australia). While the certification isn't mandatory for practising, being a certified financial planner improves your job prospects.
financial planner skills and competencies
Some of the qualities of financial planners include:
- customer-first mentality: a good financial planner should prioritise clients' needs. While you market and sell financial and investment products to clients, your priority is to ensure their best interests come first.
- financial aptitude: financial acumen is vital in selling financial or investment products. Understanding the financial markets and the impact of market changes helps you provide the best advice.
- presentation skills: as a financial planner, presentation skills are essential since you spend most of your career presenting plans to clients or selling financial products. Good communication skills also help you share information in simple terms that clients understand.
FAQs about working as a financial planner
Here are the most asked questions about working as a financial planner:
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how much do financial planners make in australia?
Financial planners make a mean salary of $110,000 per year. The remuneration package can be as low as $95,000 or as high as $115,000 annually, depending on experience level and educational qualifications. Financial planners also receive commissions when clients purchase financial products from companies they promote. The vendor pays a commission, usually a percentage of the product value.
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what are the duties of a financial planner?
As a financial planner, you provide financial planning services, from evaluating a client's financial stand and budgeting to creating investment and tax strategies. A financial planner offers advice on investments or financial products and assists with retirement planning. They also advise on tax issues and coordinate estate planning.
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what are the duties of a financial planner?
As a financial planner, you provide financial planning services, from evaluating a client's financial stand and budgeting to creating investment and tax strategies. A financial planner offers advice on investments or financial products and assists with retirement planning. They also advise on tax issues and coordinate estate planning.
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what is the difference between a financial planner and an advisor?
A financial advisor refers to brokers, insurance agents and money managers. They provide an overview of the investments and risks associated with the financial products. A financial planner focuses on individuals' financial goals. They provide customised financial planning services and create a strategy to improve clients' finances.
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how do I become a financial planner?
A financial planner in Australia should complete an accredited degree in financial planning. After graduation, look for entry-level roles to gain the one-year experience required for signing up with the Australia Securities and Investment Commission. You can also work towards additional certification to improve your credentials.
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is financial planning a hard job?
Becoming a financial planner involves dealing with fluctuating market trends and providing sound advice on uncertain investment products. You are constantly under pressure to make an accurate forecast to avoid losing clients' money.
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how do I apply for a financial planner vacancy?
Applying for a financial planner job is easy: create a Randstad profile and search our financial planner job offers for vacancies in your area. Then simply send us your CV and cover letter. Need help with your application? Check out all our job search tips here.
