Why more women and people of color should consider becoming financial planners

Women and people of color disproportionately bore the brunt of COVID-19’s financial toll to date. In December 2020 alone, women accounted for all 140,000 net U.S. jobs lost. In April 2021, just over one year after COVID-19 was declared a pandemic, the unemployment rate for Black Americans stands at nearly 10%, compared to 5.4% for white Americans.

Despite vaccination numbers increasing and virus case counts plateauing or decreasing in many states, uncertainties remain—from additional virus variants and a feared “fourth wave,” to volatility in the stock market and anticipated inflation.

As the future remains uncertain, women and people of color can find stability and strong opportunities in a financial planning career. Financial planning is a strong and stable profession experiencing record growth and high levels of career satisfaction.

Professional financial advice is in demand now more than ever

In April 2020, as the pandemic progressed, nearly eight in ten CFP professionals (78%) reported an increase in the volume of client inquiries. Financial planners supported their clients throughout this tumultuous past year—establishing new ways to connect virtually and staying on top of trends to offer advice in the face of new financial and personal challenges.

With more Americans seeking professional financial advice, there are new opportunities being created for individuals interested in joining the profession. During the past year alone, we have seen 525 new job opportunities posted to CFP Board’s Career Center, including internships for those just starting out in the profession.

Additionally, the American population seeking financial advice is becoming increasingly diverse. People of color are anticipated to make up the majority of the American population by 2045. The body of financial planners must not only grow, but also diversify, to accurately represent the financial interests of the public it serves.

2020 saw record growth in the number of new female, Black and Latino CFP professionals. Though progress has been made, the continued advancement of this growing diversity among financial planners is crucial to the profession’s sustainability. With opportunities available to serve an increasingly diverse American public seeking advice, it is an opportune time for women and people of color to consider joining the profession.

Financial planners can help community members and have a satisfying career

As the financial planning profession expands its ranks, high levels of career satisfaction are reported and recognized.

Financial advisor is included in U.S. News & World Report’s 2021 top five Best Business Jobs and top 25 Best Paying Jobs. For existing CFP professionals, over 85% report that their certification has positively impacted their career satisfaction.

In addition to career autonomy and the ability to earn a high and stable income after just a few years in the profession, CFP professionals of color also name the opportunity to help others and expand access to financial services in underserved communities as top benefits of being a financial advisor.

An open door to a multitude of career opportunities

Joining the financial planning profession opens the door to a range of job possibilities that cater to a diversity of perspectives and interests.

Individuals can decide to advise for a large bank or a small independent firm. Entrepreneurial advisors can start their own firms, allowing for greater choice over their work schedule, clientele and ability to pursue a niche in a certain area of planning, from saving for college to investing for retirement.

Planning skills can also be transferred to professions in academia, including research and higher education teaching.

Join an impactful and growing profession

The U.S. Labor Department anticipates that jobs in financial planning will grow at a rate of 7% through 2028—faster than average. As the profession continues to grow, despite an uncertain external environment, even more women and people of color should consider it as a stable, rewarding and impactful career choice.

D.A. Abrams, CAE is Managing Director of the CFP Board Center for Financial Planning.