How Do You Become a Financial Advisor?

When it comes to finances, long-term planning can feel overwhelming. That's why many people turn to financial advisors — professionals who help clients plan for a healthy financial future.

Wondering how to become a financial advisor? Read on to learn about the financial advising career path and the education, training, certification and experience you need to ensure financial security and peace of mind for clients.

What Does a Financial Advisor Do?

Put simply, financial advisors help clients manage their money and build long-term financial stability.

"A financial advisor is responsible for understanding their client’s financial situation and financial goals and making recommendations to support them in meeting their goals," said Gary Simmerman, CERTIFIED FINANCIAL PLANNER^® professional and finance adjunct faculty at Southern New Hampshire University (SNHU).

According to Simmerman, who has more than 30 years of experience in financial services, this requires knowledge in multiple areas of finance, including:

• Investments: Stocks, bonds, mutual funds and exchange-traded funds
• Insurance: Personal and property products
• Retirement saving: 401(k) plans and traditional and Roth IRAs
• Estate and tax planning: Wills, trusts and strategies to minimize lifetime tax burden

"Additionally, there are important soft skills that an advisor must have to effectively communicate with their clients, including active listening and empathy," he said.

Using a combination of industry knowledge and soft skills, financial advisors can build strategies that help their clients successfully reach their financial goals.

What Qualifications Do I Need to Be a Financial Advisor?

According to the U.S. Bureau of Labor Statistics (BLS), financial advisor qualifications typically include a bachelor's degree and on-the-job training, but certain industry-recognized credentials and graduate education can help you take your career even further.

Education

While employers might not require you to have your degree in a particular subject, a bachelor's in finance program will cover skills particularly relevant for success in financial planning.

Take, for example, Catie Donahue '25. After taking a job in financial services, Donahue decided to go back to school to earn her Bachelor of Science (BS) in Finance online from SNHU, where she dove into subjects like corporate finance, business operations and financial accounting.

"The knowledge I have gained from SNHU has only enhanced my ability as an advisor and further solidified my love for the financial industry," Donahue said.

At SNHU, you can also pursue a concentration in financial planning as part of your finance degree. This means you'll take 5 courses that focus specifically on financial planning topics like investments, securities, insurance, pension plans and real estate.

According to William Alan McKnight, CFP^® professional and finance adjunct faculty at SNHU, the financial planning concentration also gives students the opportunity to get real-world experience, practicing on client profiles while learning the fundamentals.

“(It) is very project-based, where students work through a particular client profile," he said. "They learn not just the fundamentals of how, but also how to have the conversations on the potential problems or issues that a client will face."

Additionally, seeking internships or paraplanner support roles could help you gain foundational experience that looks good on a resume. And if you've already earned a bachelor's degree, getting your master's in finance could also be beneficial in your growth as a financial advisor, according to BLS.

Read more: Is a Master's in Finance Worth It?

Industry Credentials

Earning an industry-recognized credential can help signal to employers and clients that you're dedicated to your role. While there are various paths available to financial advisors, CERTIFIED FINANCIAL PLANNER^® certification is one of the most popular. Simmerman (a CFP^® professional himself) said it's a credential any aspiring advisor should consider.

"CFP^® certification is the gold standard in financial planning," he said. "By earning certification as a CFP^® professional, you are demonstrating to clients that you have the education and experience to provide effective financial planning advice."

To sit for the CFP^® exam and become certified as a CFP^® professional, you must meet a two-part education requirement set by the CFP Board:

1. Earning a bachelor's degree from an accredited college or university
2. Completion of CFP Board-approved coursework

SNHU’s CFP Board-registered BS in Finance with a concentration in Financial Planning fulfills both parts of the education requirement, which may reduce the time and cost of becoming certified as a CFP^® professional.

Note: CFP^® certification requires education, passing the exam, gaining experience and adherence to ethical standards. Learn more about how to become a CFP^® professional.

According to Simmerman, some financial planning disciplines may require additional licensing. For instance, if you want to work in the securities industry, you must be licensed by the Financial Industry Regulatory Authority^® (FINRA^®). This involves passing a series of exams, including the SIE^® exam and role-specific qualification exams such as the Series 7 exam and the Series 6 exam. Other licensing exams may be required for certain specialties.

Will AI Replace Financial Advisors?

While AI may change how financial advisors do their work, it won't replace them completely. At its core, a financial advising career hinges significantly on long-term client relationships — something that requires a human touch, according to Simmerman.

"It will make soft skills such as active listening and empathy even more important, as these are unlikely to be easily replicated in AI tools," he said.

Clients will need to trust that their financial advisor truly cares about them and their future. In practice, this means understanding their circumstances and goals, listening to their concerns and communicating information effectively — especially technical jargon and complex data.

“You will need to look at a situation and synthesize multiple concepts to create solutions specific to your client’s needs," Simmerman said. "You’ll need to be someone who genuinely wants to help people achieve their financial goals.”

Beyond exploring ways to enhance their practices with AI, financial advisors can demonstrate their value through human connection and highly personalized guidance.

Do Financial Advisors Make Good Money?

Data shows that financial advising can be a lucrative career. According to the BLS, personal financial advisors had a median annual wage of $105,070 in May 2025 (more than twice the median wage for all workers).*

"In addition to offering the opportunity to be well compensated, financial advising can be a very gratifying career," Simmerman said. "Knowing that you are helping a client achieve their financial goals and gain financial freedom is a rewarding experience."

That said, financial planning is a client-facing role that often requires networking and long-term relationship building. If that doesn't sound like the role for you, there are many other careers in finance you could pursue.

*Cited job growth projections may not reflect local and/or short-term economic or job conditions and do not guarantee actual job growth. Actual salaries and/or earning potential may be the result of a combination of factors including, but not limited to: years of experience, industry of employment, geographic location, and worker skill.

**Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP^®, CERTIFIED FINANCIAL PLANNER^®, and CFP^® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

Marissa St. Laurent is a copywriter in higher education.