How To Become A Financial Advisor Without A Degree

According to the Bureau of Labor Statistics’ (BLS) Occupational Outlook Handbook, the median wage for financial advisors was $94,170 annually in 2021, with 30,500 job openings projected per year.

Financial advisory is a promising career path. But what if you don’t have a financial degree like most financial professionals in the industry?

What does a financial advisor do?

First and foremost, it’s important to understand what exactly this career path entails.

Financial advisors provide advice and support to individuals, families, or businesses on various financial matters depending on their goals — such as mortgages, investments, estate planning, and retirement planning.

The day-to-day tasks of a financial advisor can vary depending on their clients and the nature of their work. However, there are some responsibilities that most financial advisors have to do on a daily basis, including

  • Meeting with clients to discuss their financial goals

  • Analyzing their clients’ financial situation by examining their credit history, savings, investments, and debt

  • Developing personalized financial plans and investment portfolios based on their client's objectives

  • Make recommendations for specific financial products like stocks, bonds, or mutual funds that align with their client's goals

  • Regularly monitors clients' progress to assess the effectiveness of their plans and portfolios, making adjustments as needed

Additionally, as more people seek the services of a financial advisor, more people would be aware of the term ‘fiduciary’ and why it’s important.

A financial advisor who operates in a fiduciary capacity is bound by law to act in the best interests of their clients. They must disclose any conflicts of interest, avoid recommending non-beneficial products/services, and prioritize their client's needs over their own.

Do financial advisors need a college degree?

Short answer: No.

Long answer: While a degree will give you a leg up in the job market, it’s not necessary to break into the industry.

Neither FINRA (Financial Industry Regulatory Authority) nor NASAA (North American Securities Administrators Association) — the two main financial licensing bodies in the United States — lists a degree as a requirement to be a financial advisor. However, some job openings do require a bachelor’s degree in related fields. So a degree gives you a competitive advantage if you’re planning to apply to companies instead of opening your own practice.

How to become a financial advisor without a degree

While there are no specific educational requirements you must meet to be a financial advisor, your advice won’t be worth much if you have no credentials whatsoever.

At a high level, here are the steps you need to take to break into the industry without a degree:

Start with identifying the kind of financial service you want to offer, explore online courses and certifications to obtain the necessary licenses, then secure an internship, and eventually an entry-level job to gain some experience. By the end of the journey, you can consider pursuing a degree for further specialization or broadening your career path.

1. Determine what type of financial advice you want to provide

Establishing what financial service you want to provide early on can help you focus on your goal and help you build your financial advisor career.

Some of the most popular choices in this field include

  • Asset managers

  • Retirement planning

  • Personal finance planning

  • Estate planning

  • Tax advisors

  • Investment advisors

Knowing what you’ll be doing also impacts the type of licenses and certifications you need to have so you can legally provide those services. For example, the license to advise clients on stocks is different from the license to advise on mutual funds.

2. Explore online courses and certifications

Not having a 4-year degree doesn’t mean that you’re unqualified — but your prospective clients and employers won’t know that. Furthermore, formal education validates what you know about the industry, so you’ll be more confident when giving advice.

While courses and some certifications aren’t mandatory, and technically you can teach yourself the necessary skills, we can’t recommend that. Especially if you’re new to the field. Self-teaching demands excellent self-discipline, time-management skills, and the ability to locate the best resources.

By registering for a certification program, you can simplify the process and provide proof of your expertise on top of that.

3. Pass the exams and earn your licenses

Depending on state requirements and what you want to do, you might need specific licenses to start your career.

For instance, you need securities licenses to sell market-specific investment products. 

Licensing plays an important role in a highly regulated field like the financial services industry. This is especially true if you’re pursuing a career without a bachelor's or master's degree, as more people will put more scrutiny on your credentials.

Here is a brief overview of several common exams that you can pursue:

  • Securities Industries Essentials exam

    • This exam, offered by FINRA, is a beginner-level exam that covers fundamental information, concepts, products, agencies, and practices related to the securities industry. The only requirement to take it is that you are 18 years old.

    • While passing the SIE won’t grant you the authority to sell securities, employers still value it since it’s a prerequisite for other license exams.

  • Series 6 exam

  • Series 7 exam

    • The Series 7 license allows you to sell a wide range of securities, including options, stocks, and bonds. It’s considered a general-securities representative license. The exam you need to pass for the Series 7 license, The General Securities Representative Qualification Examination (GS), is administered by FINRA and covers various topics such as options, debt securities, and equity securities.

  • Series 65 exam

    • The NASAA Investment Advisers Law Examination, also known as the Series 65 exam, is a FINRA-administered exam that is required by most states if you want to work as an investment advisor representative and provide financial planning services. After passing the Series 65 exam, you’ll be allowed to provide investment advice on a non-commission basis and charge hourly fees. Alternatively, if you want to receive a commission from the sale of securities products, you can obtain the Series 65 license administered by NASAA.

  • Series 66 exam

    • The Series 66 exam, also known as the NASAA Uniform Combined State Law Examination, is a test administered by FINRA on behalf of NASAA. Passing this exam allows you to be recognized as both an investment advisor representative and a securities agent. The Series 7 exam is a core requirement for this exam.

4. Earn state certifications

Some states may require you to obtain additional certifications, which can vary depending on your area of specialization. These certifications might require you to complete a training program or pass an examination.

5. Find an internship or a mentor

To gain experience before becoming a financial advisor, consider interning or applying for assistant positions in financial companies like banks, insurance companies, or investment firms that are part of FINRA.

If you’re in a high school with an internship program, applying for financial internships is a good way to get some on-the-job training in the industry.

Otherwise, internship opportunities also appear on job boards. Ideally, aim for internships with FINRA-member firms or SROs for possible sponsorship so you can take the Series 6 and 7 exams.

Another option is to find a mentor that can help you navigate your career path. Mentors can provide career advice, personal guidance, and honest feedback to help you improve your skills, on top of gaining access to their network. They can also assist you through the application and hiring processes, helping you stand out from other candidates.

6. Find an entry-level job

It’s likely that you won’t need a degree to get a job for entry-level positions, such as an insurance agent, insurance broker, bank teller, accounting clerk, personal financial advisor, financial coach, and mortgage consultant.

While your job title won’t be “financial advisor” yet, these jobs can serve as a good starting point especially if you’re still trying to get your feet wet and figuring out your career path.

7. Consider pursuing a degree

Once you’ve started working as a financial advisor, pursuing higher education can offer new opportunities for professional growth — be it to broaden your career path or to specialize further.

For example, a bachelor’s degree is necessary to earn designations such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) — something that most clients look out for when looking for a trusted advisor.

Find training and support with Asset-Map

It takes hard work and dedication to become a financial advisor without a college degree. Start by defining your goals and strategy. Then, educate yourself through online courses and certifications, obtain necessary licenses, and gain experience with internships and entry-level jobs. Consider pursuing a finance degree later on to expand opportunities and deepen your specialization.

While you’re leveling up your skills to start your financial advisory career, you should also find resources to help your practical skills. Check out Asset-Map’s blog to find posts, webinars, and podcasts to stay up to date with industry trends.

TJ Hill