How to become a financial planner?

New Delhi: Investments have always been a double-edged sword. When everything goes according to plan, businesses and individuals take pride in their strategic acumen.

On the other hand, when gone wrong, it's a case of deep soul searching. For years, businesses and individuals have relied on the expertise and experience of financial advisors for making sound investment decisions.

Though in a dynamic market there is no guarantee with returns, financial advisors with all their expertise would help make strategic moves that would yield high return on investment.

This can be paralleled with the medical profession where doctors help restore and improve the health of a human being. Almost similarly, financial planners are like 'wealth doctors' who help their client grow their investments.

This specialized skill of being a 'wealth doctor' can be acquired through specialized programmes like the CFP Certification which enables financial professionals and career aspirants to understand the deeper science of financial advisory during an ever changing atmosphere of financial markets.

Use of Technology

Like all other spheres of life, technology is making its way in aiding individuals and businesses make investments. Financial planning is no different.

There is a global debate raging on the benefits and downsides of using robot financial planning.Many small investors and businesses have started to use these and, instead of financial planners, are now completely relying on the software and calculator for making every financial decision.

Pros

Hiring financial planners allows investors to become involved in the investment process. All suggestions and queries are met with accordingly. In case of a Robot Advisors, all investments are made by a set of programs.

The rate of 'Return' is substantially higher with financial planners as they are trained in strategic risk-taking that allows them to make moves that automated programs won't.

Financial planners are ideal for anyone with a large portfolio spread across different sectors as they look at investments beyond the realms of typical profit-loss statements help take long term calls that computer programs are unable to make.

Cons

The cost of hiring a financial planner is much higher than using Robot Financial Planning tools.

A huge chunk of the investors can't reach the minimum threshold in terms of assets required to hire a financial planner. Using robo-advisors is less intimidating and more convenient.

Robo-advisors keep clients updated minute by minute on the investment scenario while financial planners may send daily, weekly or monthly reports. This allows investors to track all their investments in real-time.

The Verdict

Though "robo-advisors" have emerged as a plausible option for making investment in the market they won't undercut the role of financial advisors in the role as investment facilitators.

The need of the hour is a hybrid approach wherein financial advisors make use of these tool and software when it comes to making investment decisions.

The fact that financial advisors understand the investor psychology and the demands of the market better, it puts them into an advantageous situation comparatively.

They use their inherent knowledge in behavioural finance and neuro-economics to make strategic moves in the market.

Becoming a Financial Planner

The demand for Financial Planners continues to grow in this tech-savvy world and this is one of the most lucrative career options for anyone in the finance industry.

A CFP Certification trains students in every aspect of financial planning and helping their clients make the most out of their investments.

International College of Financial Planning is one of the leading institutions in Financial Planning to offer this course.

Here, students undergo comprehensive training in various aspects of Financial Planning that includes framing financial policies in relation to the financial plan construction,

choosing most suitable investments as per clients need, etc. They also train students in maximizing the returns on scarce financial resources.