What’s It Like to Be a Financial Planner?

What's it like to be a financial planner in Australia? Have you ever wondered what it's like to work as a financial planner in the land down under? Australia has a vibrant financial industry, and being a financial planner means working with clients from various backgrounds, industries, and financial situations.

So, what does it take to be a financial planner in Australia? To become a qualified financial planner in Australia, you need to meet certain education and training requirements and adhere to the industry's ethical standards.

The financial planning profession in Australia is tightly regulated, and planners must complete specific qualifications and ongoing education to remain licensed.

But being a financial planner in Australia is not just about ticking the regulatory boxes. It's also about building meaningful relationships with clients and helping them achieve their financial goals.

From managing investments to creating retirement plans, financial planners in Australia play a crucial role in helping individuals and families secure their financial future.

So, whether you're a seasoned financial planner looking to expand your horizons or someone interested in pursuing a career in financial planning, this article will give you valuable insights into what it's like to work as a financial planner in Australia.

Let's dive in and explore the world of Australian financial planning!

What is a Financial Planner?

A professional that counsels individuals and companies on how to manage their financial affairs efficiently and offers advice and direction in this area is known as a financial planner. 

They collaborate with their customers to gain an understanding of their client's current financial situations, determine the client's financial objectives, and develop individualised financial plans that will assist the customers in accomplishing those objectives.

A financial planner may provide advice on many aspects of personal finance, such as investing, retirement planning, tax planning, and estate planning.

Principal Responsibilities and Activities of a Financial Planner

• Put together a plan to reach your monetary objectives, and then go ahead and put that plan into action.

• Keep an eye on how investments are performing, evaluate investment plans, and adapt them as necessary in reaction to changes in the market.

• In addition to preparing reports, budgets, statutory returns, and projections, you will be responsible for organising the collection of accounting, financial, and investment data.

• Conduct interviews with prospective customers to learn about their current and long-term financial goals, status, and options; build investment strategies; and create financial plans and plans for the future.

• Provide advice on where the funds should come from, how they should be invested, and how the earnings should be distributed.

• Make arrangements for customers to sell and acquire bonds and equities on the stock market.

• Support customers in meeting the requirements of their superannuation compliance programmes.

• Make arrangements for and provide advice regarding clients' insurance coverage.

• Manages the money that has been accumulated through personal superannuation saving policies and unit trust investments.

• Consumers should be referred to other organisations to obtain the services outlined in the financial plans.

How to Get a Job as an Australian Financial Planner

In order to get off to a good start in Australia in the field of financial planning, these are a few actions that often need to be taken:

1. Obtain A Bachelor's or Diploma Degree

According to the ASIC (Australian Securities and Investments Commission), there is a range of particular and general necessary knowledge for working as a financial adviser in Australia.

You are required to get a certificate, a bachelor's degree, or an advanced diploma in a field that is linked to the position you are applying for.

Acquiring a qualification in business, financial planning, or accounting with a focus on financial planning can equip you with the necessary abilities to advance in your job. These fields all focus on financial planning.

These credentials are sufficient to meet the basic educational requirements for the CFP (Certified Financial Planner) certification.

2. Choose the Kind of Planner That You Would Like to Become

Upon finishing your primary schooling, you ought to have a good understanding of the services you wish to provide as a financial advisor after you have gained some experience in the field.

Hence, it would be ideal for you to decide if you want to concentrate on insurance, superannuation, or financial planning or if you'd like to concentrate on a mix of these services and others.

In addition, the Australian Securities and Investments Commission (ASIC) mandates that you complete extra training in order to prove that you have expert knowledge in the appropriate domains detailed in regulatory guide 146.

3. Find An Entry-Level Position With A Licensee And Work Your Way Up

After completing your studies, you will be eligible to submit applications for entry-level jobs with practising financial businesses or advisors that hold an Australian Financial Services Licence (AFSL) granted by ASIC.

Because of the heavy emphasis placed on experience in this industry, you should always be prepared to enter the field in an entry-level position and work your way up.

The majority of people who go on to become financial advisers start out in the industry as paraplanners or administrators, then move up through the ranks to become associate advisors before taking on the role of a financial advisor.

4. Get Your Credentials

Even while certification is not necessary to engage in the practice, obtaining one could speed up the process of finding work. If you already have a job, this can also help you differentiate yourself from the others at your workplace.

In addition, the clients you serve will have greater faith in your capacity to carry out the duties associated with your career successfully.

You have the ability to receive certification through an organisation that is well-known and respected, such as the FPA (Financial Planning Association of Australia). Another universally acknowledged and advised credential is the CFP, which stands for Certified Financial Planner.

This accreditation is not necessary in order to get a job working as a financial planner. Despite this, it is strongly recommended that you do so because it demonstrates to your clients that you are competent and dedicated to maintaining ethical standards and furthering your professional growth.

Keep in mind that companies have a tendency to favour certified experts, which will result in an increase in both your potential earnings and your career possibilities.

Remember that the Australian Securities and Investments Commission (ASIC) regulates the conditions that must be met to become a financial planner in Australia and that these requirements can shift at any time.

In order to ensure that you have the most recent information, be sure to consult Regulatory Guide 146.

What Academic Qualifications Must You Meet to Become a Financial Planner in Australia?

To work as a financial planner, you will need to complete some academic requirements, but they are not overly difficult to do.

A bachelor's degree in a relevant subject, such as accounting, finance, mathematics, economics, or business, is typically required for admission into this programme.

According to the Australian Securities and Investments Commission (ASIC), several of these degrees satisfy both specialised and general criteria.

The minimum educational qualifications can be fulfilled by earning a Bachelor of Arts in Financial Planning, which is offered by a few of Australia's educational institutions.

Because several companies that hire financial planners have training programmes that build on the basis laid by the Bachelor's degree, in most cases, a Master's degree also isn't needed. This is because the Bachelor's degree lays the groundwork for the training programme.

You can also increase your marketability to prospective employers by enrolling in a few crash courses that are offered online.

A Graduate Diploma in Strategic Leadership or a Double Diploma in Business and Leadership are two examples of this kind of programme.

Let's say that you are interested in doing something other than pursuing a Bachelor's degree full-time.

In this scenario, your best bet is to enrol in some online financial planning classes, like those leading to a Certificate IV in Financial Services or a Diploma in Financial Planning.

Because certain courses take into account the student's prior education, the length of the course is based on whether the student is starting from scratch or is looking to polish their skills.

On the other hand, the majority of the available classes require close to a year to complete. If you would like any additional information regarding the programme you are considering enrolling in, you are free to contact the university at any time.

When you have finished your studies, you should look into companies that have opportunities available at the entry-level. Ensure that these businesses possess a valid Australian Financial Services License (AFSL) granted by the ASIC.

Why Meet with a Financial Planner?

Let's quickly go through some of the reasons why it's a good idea to consult with a financial planner in Australia.

A financial planner can offer professional advice on a wide variety of financial matters, including but not limited to investing, planning for retirement, managing debt, and tax planning.

You are able to get personalised advice from a financial planner that is geared to your specific financial status, goals, and level of tolerance for risk when you meet with them.

How a Financial Planner Can Help You

Planners can assist you in various ways, depending on your particular financial concerns and objectives. The following is a list of some of the ways in which a financial planner can assist you:

1. Create a Financial Plan

Your financial goals and the actions you need to take to accomplish those goals can be outlined in detail in an all-encompassing financial plan that can be crafted in collaboration with a financial planner.

This plan may address a variety of financial concerns, such as investing, management of existing debt, planning for retirement, and planning for the estate.

2. Investment Advice

Your financial goals, level of comfort with risk, and the amount of time you have available to invest all play a role in financial planners' recommendations regarding the most profitable investment opportunities.

They are also able to assist you in monitoring and adjusting your investments to ensure that they are in line with your objectives and can do so with your assistance.

3. Retirement Planning

Financial planners are able to assist you in planning for your retirement by developing a retirement plan for you. This plan will include the amount of money you will require to retire in comfort and the steps you need to take to reach that objective.

In addition, they can offer guidance on other forms of retirement savings, such as superannuation.

4. Tax Planning

Your tax burden can be reduced, and the amount of money you keep after taxes increases by following the advice of a financial planner who specialises in tax planning tactics.

5. Estate Planning

The creation of an estate plan that details how your assets will be distributed and the steps you need to take to ensure your wishes are carried out is one of the services that financial planners can provide to clients in order to assist them in planning for the distribution of their assets after the death of the client.

How Much Does It Cost to Hire a Financial Planner?

It is a common misconception that those who own 100-foot yachts and houses on 4 acres or more are the only ones who need financial preparation.

When it comes to straightforward guidance, the price of getting it can be less than $500.

Questions to Ask a Financial Planner

• What are your credentials, and how much experience do you have? It is essential to be certain that the financial planner you are working with has the appropriate levels of education and expertise in order to be able to offer reliable financial advice.

• What kinds of services do you have available? Financial planners can provide clients with various services, ranging from advice on investments to planning for retirement. It is essential to have a solid understanding of the services provided by the planner to evaluate whether they are suitable for your requirements.

• What kind of payment do you receive? Compensation for financial advisers can take several forms, including fees and commissions, and these are just two examples. If you know how the planner is paid, you will be better able to judge whether or not there are any potential conflicts of interest.

• How can you determine how much tolerance you have for risk? When it comes to making financial investments, everyone has a varied level of comfort with taking risks. It is essential to collaborate with a financial planner who takes the time to comprehend the level of danger you are willing to assume and invests in accordance with that.

• How do you establish a financial plan? The process of building a financial plan that is specific to your needs and goals ought to be laid out in detail by any competent financial advisor.

• How frequently will we get together? Checking in with your financial planner on a regular basis will assist in verifying that your financial plan is on the right track and that any necessary adjustments are being made.

• How can you keep up with the changes that are occuring in the financial industry? Because the financial sector is in a state of perpetual flux, it is essential to collaborate with a financial planner who is abreast of the most recent shifts and developments in the business.

• Can you offer references? Talking to the planner's previous customers might offer you an idea of their track record and how they collaborate with their clients.

• What is your approach to making financial investments? If you understand the investment philosophy of the financial planner, you will be better able to judge whether or not it is congruent with your own values and objectives.

• How do you react when market conditions worsen? It is essential to put together a strategy that can be implemented regardless of the ups and downs the market experiences.

• What kind of prices do you charge for your services, and what do they cover? In order to make a decision that is based on accurate information, it is critical to have a solid understanding of the fees connected with working with a financial planner.

• What strategy do you use while planning your taxes? How you prepare your taxes might greatly influence your overall financial strategy. Collaborating with a financial planner who deeply understands the various tax preparation options is critical.

• How do you go about planning out your estate? While estate planning can be difficult, it is critical to collaborate with a financial planner with previous experience in this field.

• Can you offer a sample financial plan? Reading through an example of a financial plan will provide valuable insight into the planning process.

• What are the following measures to take? If you are aware of the following steps in the preparation process, you will be able to improve your sense of self-assurance and readiness.

The Future of the Financial Planning Industry in Perspective

The field of financial planning has been subject to a great deal of innovation over the course of the previous ten years. This is excellent news for clients who use the services of a financial planner, and it is also a step in the right direction for the financial planning industry as a whole.

The field of financial planning in the present day is extremely dissimilar to what it was in the past. The reforms have worked to boost not just the regulatory framework but also the ethical standards, which have improved the quality of the financial advice that customers receive.

The growth projections for financial investment advisors and managers are also optimistic, coming in at slightly over 10 per cent for the next five years. The annual compensation of a financial advisor in Australia often falls somewhere between $90,000 and $130,000 on average.

However, keep in mind that these average salaries are only meant to serve as an indication to help guide your expectations. Your level of expertise, in addition to a great number of other considerations, typically determines the actual compensation you receive.

The development of one's financial planning skills is not enough to ensure one's success as a financial planner.

Effective financial advisors also possess the ability to cultivate robust relationships with the customers they serve. It is not a simple choice to make to put your faith in another person with your financial future.

If you are considering pursuing a career in this sector, it is crucial to consider the work you will be doing and evaluate how well you are suited to the tasks that will be required of you.

Bottom Line

In summing up, selecting a profession as a financial planner in Australia is an option that is both stimulating and fulfilling.

The field of financial planning is always changing, which means there are always new obstacles to overcome as well as chances to learn and advance in one's career.

Financial planners in Australia play a significant part in assisting people and families in attaining their monetary objectives and enhancing their general financial well-being by providing guidance and advice.

They offer insightful counsel and direction on a wide variety of financial matters, such as investments, superannuation, insurance, and estate planning, among other areas of expertise.

If you live in Australia and are considering pursuing a career as a financial planner, numerous tools are available to assist you in getting started in the field.

You can investigate your alternatives for training and education, connect with people already working in the field, and get experience by participating in internships and other entry-level roles.

What are some of the most essential characteristics that an effective financial planner in Australia ought to possess? Do you believe this particular line of work would be a good fit for you? Share your thoughts with us in the section below!

Content Summary

• Australia has a vibrant financial industry, and being a financial planner means working with clients from various backgrounds, industries, and financial situations.
• To become a qualified financial planner in Australia, you need to meet certain education and training requirements and adhere to the industry's ethical standards.
• The financial planning profession in Australia is tightly regulated, and planners must complete specific qualifications and ongoing education to remain licensed.
• It's also about building meaningful relationships with clients and helping them achieve their financial goals.
• From managing investments to creating retirement plans, financial planners in Australia play a crucial role in helping individuals and families secure their financial future.
• Conduct interviews with prospective customers to learn about their current and long-term financial goals, status, and options; build investment strategies; and create financial plans and plans for the future.
• According to the ASIC (Australian Securities and Investments Commission), and there is a range of particular and general necessary knowledge for working as a financial adviser in Australia.
• You are required to get a certificate, a bachelor's degree, or an advanced diploma in a field that is linked to the position you are applying for.
• Acquiring a qualification in business, financial planning, or accounting with a focus on financial planning can equip you with the necessary abilities to advance in your job.
• Upon finishing your primary schooling, you ought to have a good understanding of the services you wish to provide as a financial advisor after you have gained some experience in the field.
• Hence, it would be ideal for you to decide if you want to concentrate on insurance, superannuation, or financial planning or if you'd like to concentrate on a mix of these services and others.
• In addition, the Australian Securities and Investments Commission (ASIC) mandates that you complete extra training in order to prove that you have expert knowledge in the appropriate domains detailed in regulatory guide 146.
•  After completing your studies, you will be eligible to submit applications for entry-level jobs with practising financial businesses or advisors that hold an Australian Financial Services Licence (AFSL) granted by ASIC.
• Because of the heavy emphasis placed on experience in this industry, you should always be prepared to enter the field in an entry-level position and work your way up.
• Even while certification is not necessary to engage in the practice, obtaining one could speed up the process of finding work.
• If you already have a job, this can also help you differentiate yourself from the other people at your workplace.
• You have the ability to receive certification through an organisation that is well-known and respected, such as the FPA (Financial Planning Association of Australia).
• Another universally acknowledged and advised credential is the CFP, which stands for Certified Financial Planner.
• This accreditation is not necessary in order to get a job working as a financial planner.
• Keep in mind that companies have a tendency to favour certified experts, which will result in an increase in both your potential earnings and your career possibilities.
• Remember that the Australian Securities and Investments Commission (ASIC) regulates the conditions that must be met to become a financial planner in Australia and that these requirements can shift at any time.
• To work as a financial planner, you will need to complete some academic requirements, but they are not overly difficult to do.
• A bachelor's degree in a relevant subject, such as accounting, finance, mathematics, economics, or business, is typically required for admission into this programme.
•   The minimum educational qualifications can be fulfilled by earning a Bachelor of Arts in Financial Planning, which is offered by a few of Australia's educational institutions.
• You can also increase your marketability to prospective employers by enrolling in a few crash courses offered online.
• When you have finished your studies, you should look into companies that have opportunities available at the entry-level.
• A financial planner can offer professional advice on a wide variety of financial matters, including but not limited to investing, planning for retirement, managing debt, and tax planning.
• Planners can assist you in various ways, depending on your particular financial concerns and objectives.
• Your financial goals and the actions you need to take to accomplish those goals can be outlined in detail in an all-encompassing financial plan that can be crafted in collaboration with a financial planner.
• Financial planners are able to assist you in planning for your retirement by developing a retirement plan for you.
• Your tax burden can be reduced, and the amount of money you keep after taxes increases by following the advice of a financial planner specialising in tax planning tactics.