What Career-Switching Advisors Bring to the Table

Becoming a financial advisor after working in another field can be an optimal career path. Financial advisors use many skills that are also required in other fields. From teaching, to sales and even acting, there’s room for career changers in the financial advisor world.

There are more than 100 different financial certifications and many competencies within the field. Actually, there isn’t a definitive standard credential for a financial advisor. The most popular credentials can be boiled down to three: Certified Financial Planner (CFP), Personal Financial Specialist (PFS) and Chartered Financial Analyst (CFA). Fortunately, for career switchers some of the large brokerage firms will provide internships as well as training courses for their prospective employees. (For more, see: The Top 3 Financial Advisor Credentials.)

Additionally, there are three general licenses that financial advisors must obtain. First is the Series 7 license or the General Securities Representative license. Financial advisors also need a Series 63 license or the Uniform Securities Agent State license. This will allow an advisor to work across state lines. In order to charge advisory fees, the financial pro must pass the Series 65 exam or the Uniform Investment Advisor Law exam.

The new financial advisor needs certain skills to succeed in the field. For career changers, these transferrable skills may be honed in a variety of non-financial careers. In fact, career changers bring exceptional strengths from their previous occupations.

Financial advisors need a wide variety of skills. Sales skills are important, both directly and indirectly in many fields. For example, a teacher must be a superb saleswoman in order to get her class to buy into the material she’s selling (or teaching). For a financial advisor, not only might she sell specific financial products, but also explain - and ultimately sell - certain finance concepts such as diversification and asset allocation. (For more, see: Qualifications That Every Financial Advisor Needs.)

Entrepreneurship skills are important for financial advisors. Whether you elect to go into practice for yourself or join a firm, no one will hand you a client base. It is your responsibility to build your own practice. Former business owners and sales representatives, with an interest in finance, are well suited to make the career switch to becoming a financial advisor. If you know how to be persistent, disciplined and network, then you have important transferrable skills to become a financial advisor.

Strong teaching and communication skills are required to become a competent financial advisor. Many of your clients will come in not knowing the difference between a stock, bond, mutual fund or exchange-traded fund (ETF). It will be your job to clearly educate the new client about basic financial markets and products. Teachers, businessmen and women and even actors with strong communication abilities may be solid financial advisors. (For related reading, see: An Introduction to the CFA Designation.)

Take a look at career-changer Eric Hayden, a financial advisor at Morgan Stanley. Hayden was an actor and musician having appeared on Broadway in “Million Dollar Quartet” and the first national tours of Monty Python’s “Spamalot” and “Thoroughly Modern Millie.” In a recent Wall Street Journal article, Hayden explained that he had a variety of interests outside music and acting. After taking finance classes he decided to help others with their finances and work with clients in the New York City entertainment and startup industries. That began his career transition to become a financial advisor.

As another example, the financial advisor of a close relative left a lucrative engineering job to use her skills as an advisor. She’s now working for a financial advisory firm with clients across the country. Her analytical and technical skills prepared her to understand financial and investing topics.

U.S. News and World Report cites financial planning as number four in best business jobs. The median salary is $81,060 for a financial advisor and the industry claims only a 3.3% unemployment rate. With many older advisors retiring and high income potential, there are excellent job opportunities for career changers in this occupation. (For related reading, see: Is a Career in Financial Planning in Your Future?)