Andre L. Pennington, Wealth Attorney, Registered Financial Planner®, Inc. 5000 CEO, Pennington Law & Universal Wealth.
If you’ve ever worked with a financial planner, you could be forgiven for thinking it’s an incredibly complex profession that takes years of intense study to even get started. But the door is easier to step through than you might expect—and it can lead to new income opportunities, personal growth and the chance to help others make important life decisions. For anyone looking for a career with low barriers to entry but significant earning potential, financial planning can be a step in the right direction.
Growth Mindset
Becoming a professional financial planner can provide meaningful income even on a part-time basis. Financial services consistently rank among the highest-paid sectors in the U.S., and that income potential, combined with the flexibility of self-employment, makes it suitable for stay-at-home parents or anyone else looking to supplement their current careers. Amazingly, the initial investment to launch a financial services business can be under $1,000—a deal compared to many other entrepreneurial ventures.
Training to become a financial planner is also a valuable education in personal finance, a subject that is sadly lacking in our educational system. Many people struggle to navigate their money issues and often have to rely on professionals without fully understanding the advice they’re given. Imagine being able to handle your own retirement planning, tax strategies and insurance even as you advise others.
Along with both earning and saving money, financial planning fosters self-confidence. I traveled this path myself, and I have seen in others how adopting the mindset you need to tackle complex financial challenges can lead to huge personal growth.
Getting Started
Launching a career in financial planning can be surprisingly simple. A life and health insurance license is a good place to start. This lets you offer various insurance products and annuities to clients, as well as services such as estate planning and retirement income planning. Most states require only a brief pre-licensing education course, typically 20 to 40 hours, followed by a multiple-choice exam with a passing rate of around 60-70%. Once licensed, agents must complete continuing education periodically to stay current with regulations.
With a Series 65 license, financial planners can provide advisory services including retirement planning, estate planning and portfolio management. This qualification also requires a multiple-choice exam with a passing grade roughly equivalent to a C-minus. With a Series 65 license, you’re qualified to work as an investment advisor representative and are legally obligated to act in the best interest of your clients.
Anyone interested in investment products should also consider the Series 6 and Series 7 licenses. The qualification tests for these are more difficult, but with a Series 6 license you’re able to sell mutual funds, variable annuities and life insurance. With a Series 7 license, you can offer a wider array of securities, including stocks and bonds.
Building A Business
Like any business, building a successful financial planning practice depends on attracting and keeping clients. New planners often start by leveraging their existing networks. Connecting with family, friends and professional contacts and partnering with local businesses can lead to your first customers and referrals. In these early cases, it’s worth considering offering a free initial consultation to gain experience and grow your network.
Planners often use lead generation programs—such as digital ads, content marketing and specialized landing pages—to attract potential clients and a CRM (customer relationship management) system to manage existing ones. Consider creating a distinctive niche, like retirement planning for entrepreneurs or investment strategies for young families, to set yourself apart.
Developing the right mindset—understanding that this is something you can actually do and even excel at—is key. Here, finding the right kind of leadership can make all the difference. That could mean working with a mentor you split commissions with or at a company that provides on-the-job training. Having someone to encourage you across the bridge the first time can be crucial—and the canyon may not be as deep as it seems.
Many successful planners start their careers part-time, gradually transitioning to full-time practice as their client base grows. It’s critical to have the tenacity and perseverance to stick it out through the initial learning curve. But with dedicated effort—typically three to four hours of focused work per day over six months—you can be well on your way to building a practice.
Financial services is a unique opportunity to not only improve your own financial situation but also help others on their journeys. With a small up-front investment, you’re equipped to change lives, one client at a time.
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