Good interpersonal skills are important to explain complex financial concepts in a simplified manner to clients.

Being up-to-date with financial research investment options is also essential.

Getting Started

As a financial planner, you can work independently or train under an already practicing certified FP.

You can also choose to work with the wealth management department of banks, corporate houses to take care of employee benefits, life insurance companies and stocks and securities brokers.

As a beginner, you may spend around 9-10 hours a day. However, as you gradually get a grip of the work involved, the time span can reduce to just 2-3 hours a day.

Pay for Planners

Financial planners earn in a variety of ways. They charge fees based on a percentage of the client's portfolio value or financial plans implemented. This fee is generally between 2 % to 10 % of the entire portfolio managed.

They receive commissions from investment or insurance companies for products sold as the plan is implemented. Generally, for life insurances ranging from 5-10 years, FPs earn a commission of 35% of the premium paid by the client in the first year and 3% commission in the following years.

As a FP employed by a financial organisations or other institution, you earn a monthly salary as decided by the company. Some companies also give their employees a commission over and above the salary as an incentive.

Ultimately, the amount of money you make as a financial planner depends on the number of clients you have, the value of their investment portfolio and the number of products you sell.

Keep in Mind

A major part of the financial advisor's success depends on their ability to educate the client about real world scenarios and investment risks. You need to meet clients often enough to update them on potential investments and to find out about new developments – accident, marriage, education and retirement – in their life, which involve monetary planning.

People who begin as independent financial planners find it more difficult to build a client network. So they usually begin with their relatives and friends. Building a strong network of clients is one of the most important things for a financial advisor. Not only clients but also referrals from satisfied clients are an important source of new business.

Financial planners are different from financial advisors or agents. They manage all financial issues of a client unlike advisors who only suggest a plan or agents who just sell insurance.

(With inputs from: Santhanam Jayaraman, agency associate, Mac New York Life Insurance; Gaurav Mashruwala, certified financial planner; Vipul Shah, financial advisor, Frederick Furtado, HDFC insurance agent and Sarika Kolaskar, education provider, The Guardian Institute of Financial Planning)