The job of a financial advisor is one the can be very lucrative to those who are successful in the profession. It is a position that comes with a lot of sales work and networking and, like most financial positions, requires a great deal of knowledge and responsibility as you will be managing the investments of various clients.
Generally speaking, there are three licenses that you'll need to acquire before being able to represent clients and make financial recommendations in relation to retirement planning, college planning, or just general investments. All three require that you pass a multiple choice exam. All of the exams are difficult and it is recommended to use practice questions to prepare, as well as to enroll in a prep course.
The life & health insurance license, series 7, and series 66 are the three necessary licenses that you should possess if your aim is to offer a full array of services to your future clients. Here is a look look at each of the three and what they will allow you to do.
Life and Health Insurance License
The life and health insurance license is one of the first accreditations you'll receive in your process of becoming a financial advisor. It will allow you to sell life insurance, fixed annuities and health insurance to your future clients.
In order to receive the license, you will have to take and pass a qualifying exam. The exam is built up of multiple choice questions and covers the in-depth details of life and health insurance, as well as any products that you'll be allowed to sell, like annuities.
Possibly the most beneficial information you will learn about financial advising and investment products will be acquired with the series 7 exam. The test covers the intricate details of various investments products, including stocks, bonds, mutual funds, dividends and various other investment tools. It is also referred to as the General Securities Representative Exam (GSRE) and will allow you to trade securities. If your desire is to become a Wall Street stockbroker, then this is the license you'll need.
Upon completion of the series 7 exam, you will need to pass the series 66, also known as the Uniformed Combined State Law Exam. The test bares many similarities to the subject matter of the series 7, however this license will allow you to represent clients whereas the series 7 will only allow you to trade securities. In order to be a financial advisor, like those at Wealth Builder Advisor, one must own both licenses.