Starting a Financial Planning Service

Have you always dreamed of stepping out of your boss’ shadow? Do you have your own financial planning style? Do you want to share your talent and ideas to your clients and get well compensated for it?

Why not try starting your own financial planning service? Here are tips in starting your financial planning service.

Many say that providing financial planning services would be the fastest growing industry by the year 2012. And who can blame these new financial planners? Providing financial planning services is not only materially rewarding it is also a great way to help people manage their money and achieve their dreams. So whether you are just starting to understand the process of financial planning or you are a veteran tired of following your boss’ orders, here are a few tips in starting your own financial planning service.

Certification in starting a financial planning service

Being a financial planner involves giving advice on a variety of topics that concern money and invest. It is the knowledge of the financial planner with respect to investment, taxes, insurance, stocks, and estate planning among others that is what clients seek for. Anyone who is thinking of starting a financial planning service must have the required educational background for it. No specific college degree is required but a background relating to business, economics, accounting, law and finance, among others, is a good start. To be a credible financial planning service provider you should be certified as either a Chartered Life Underwriter or a Certified Financial Planner. There are also certain areas in financial planning that may require you to obtain licenses.

Types of compensation in a financial planning service

Aside from the required education, it is a good idea for anyone starting a financial planning service to tie-up or get mentored by veteran financial planners. For veteran financial planners, going to business with a certified public accountant or a lawyer would help your business. For rookies, having someone to guide you in the financial planning process would be invaluable. Determining what kind of financial planner you would also be an important step in starting your financial planning service. Your decision would affect how you would be compensated and the services that you will provide. It is a known fact that financial planners who are compensated based on commission earn more than fee-based financial planners but the fee-based financial planners are preferred by clients as they can give an unbiased financial advice. The type of financial planner that you would want to be would ultimately depend on your personality. Others are more comfortable crunching the numbers and making recommendations while others are more attuned with risking and earning through compensation.

Getting insurance is also a great way to protect your financial planning service. At the end of the day any business must go back to the basics of determining the costs of the business, the goals and the marketing strategies. Costs must include the rentals of office spaces as well as any licensing costs and training or educational costs.

1 Comment

  • sameer grover said on March 21, 2011
    Having a experience in Life insurance , Now starting my own business in General & Life insurance


    (All the above fields are required.)