Navigating the Path: A Comprehensive Guide to Financial Planning Internships

Financial planning internships serve as a crucial bridge for aspiring financial planners, connecting academic knowledge with practical experience in real-world advisory settings. These programs provide invaluable opportunities to prepare for the workforce and gain a competitive edge in the job market. In light of recent shifts in the professional landscape, understanding the evolving requirements and best practices for financial planning internships is more important than ever.

The Evolving Landscape of Financial Planning Internships

Traditionally, financial planning internship programs have offered students who are aspiring financial planners a way to prepare for entering the workforce by gaining real-world experience in advisory firm settings, as well as a way to get their foot in the door with prospective employers. Recognizing the potential impact that a lack of internships for a generation of planners could have on the industry, in 2020 the Financial Planning Association (FPA) launched "The Externship", a virtual program that provided participants with access to mentorships with financial planning practitioners, technology commonly used in financial planning, and the opportunity to apply hours from the program towards the experience requirement for CFP certification.

The COVID-19 pandemic has significantly altered the way financial planning firms operate, with many adopting hybrid or fully-remote work models. This "new normal" presents both challenges and opportunities for internship programs, requiring firms to rethink their approach to training and mentorship.

Benefits for Interns and Firms

A good internship can increase the chances of getting a job offer, from either the firm that they interned with or other firms who value the experience that the intern received from the program. But firms benefit as well, with the opportunity to thoroughly vet and observe potential employees and to showcase themselves to prospective talent. Ultimately, the key point is that today’s interns - whether they participate in industrywide programs like The Externship or in internships at the individual firm level - represent future generations of leaders in the financial planning industry. The ways that firms implement their financial planning internship programs not only influence the financial planning philosophies and practices that interns develop throughout their careers, but can also impact how diverse and equitable the profession will be in the future.

For Interns:

Real-world experience: Internships provide hands-on experience in various areas of financial planning, such as researching investment opportunities, preparing financial plans, and communicating with clients.
Skill development: Interns develop essential skills, including analytical, communication, and technical abilities, which are highly valued by employers.
Networking opportunities: Internships offer valuable networking opportunities with industry professionals, potentially leading to future job prospects.
Career insights: Interns gain a better understanding of the financial planning profession, helping them make informed career decisions.

For Firms:

Talent pipeline: Internships serve as a pipeline for recruiting and vetting potential employees.
Fresh perspectives: Interns bring new ideas and perspectives to the firm, fostering innovation and growth.
Employee development: Mentoring interns provides valuable management experience for existing employees, enhancing their skills and job satisfaction.
Community engagement: Internships demonstrate a firm's commitment to developing the next generation of financial planners.

Finding the Right Internship

Securing a financial advisor internship is a key step toward gaining hands-on experience in the industry. Whether you’re a student or are in the middle of a career change, there are numerous resources that can help you find the right opportunity.

College/University Career Centers: A good place to start the search is at your college or university career center. These centers often have a list of financial services firms who are specifically interested in hiring interns.
Company Websites: Some of the most well-known, such as Merrill Lynch, Bank of America, and Wells Fargo, advertise for internships on their sites. Others have their own special programs for college students. Vanguard, for example, has a College to Corporate Advice Internship Program.
Online Job Boards: They aggregate listings from multiple companies, making it easier to find open positions and browse ones that may align with your interests.
Professional Organizations: Independent finance associations such as CFP® Board, NAIFA, and the Society of Financial Services Professionals have career listings that include internships.

Before you start your search, think about whether you’d be willing to consider something other than a summer internship. Some universities and companies offer co-op positions throughout the year. Fall and spring internships are also available at some financial services firms. These longer-term internships are often easier to secure because there is less competition. Another benefit of longer-term internships is that they look good on your resume. Considering a finance career?

Standing Out from the Crowd

Like any career opportunity, you need to stand out in a sea of online applications so you can get an interview. There is usually a contact name there. Or, you can do a search for “talent” with the company’s name to find a talent manager. Reach out to that person and express your interest in the internship and explain what makes you the best candidate.

Tailor Your Resume: Go over your resume carefully to make sure that it honestly represents your experience: Eliminate language that stretches the truth, such as saying you have cash management experience because you were a retail sales associate.
Apply Early: As in just about every job market, competition for internships is fierce. The earlier you can get your application to financial services firms, the better. It helps you make a great first impression.
Follow Instructions: You should also read the application carefully to make sure you follow the instructions to the letter.

Although these tips can’t guarantee you an interview, they can get you closer to one. If you don’t get an interview on the first try or first few tries, do not become discouraged. Look for other opportunities and keep applying.

Acing the Interview

If you’ve been notified that you have an interview for a financial advisor internship, there are a number of things you can do to make sure you come through it with flying colors.

Brush Up on Your Knowledge: Before the interview, brush up on your finance knowledge and technical skills and work through the common finance problems or processes on which you could be tested. Then consider them in the context of the firm that is interviewing you and how to apply them in real-life scenarios.
Practice "Selling Yourself": On the day before the interview, practice “selling yourself”: What are you good at? What makes you different from every other candidate who is applying for this internship? What soft skills, personality traits, passions, and values do you bring to the table that others don’t?
Prepare Questions: On the day of the interview, bring your own set of questions: This article on preparing for a finance interview has some really good ones that focus on the work you’ll do, the organizational culture of the firm, and what skills and abilities you’ll have gained at the end.
Emphasize Flexibility: Although many interns have set duties, you might be asked to do work outside those duties or they might vary or change frequently. Let the interviewer know you are willing and able to take on new or different tasks.
Be Professional and Confident: Be as professional as possible throughout the interview and in other interactions you have with anyone else in the firm. However, you should also relax and have confidence in yourself.
Show Your Personality: A final note: personality is key to landing a financial advisor internship. Companies really aren’t interested in hiring robots; therefore, you can stand out from the crowd by demonstrating that you’re passionate about something other than work. Help the company get past your interview “game face” by letting them learn more about you as a person.

Internship Job Requirements

Here are some common requirements and expectations for financial planning internships:

Academic Standing: A student in their junior or senior year who is interested in personal financial planning/taxes/investments.
Skills and Qualities: Demonstrates professionalism, accuracy, a desire to help people, and great attention to detail.
Time Commitment: 16-24 hours/week on site at our office location.
Responsibilities:
- Write and proofread comprehensive financial plans and client communications.
- Prepare meeting agendas and other documentation.
- Prepare balance sheets, cash flow, and tax projections.
- Prepare reports.
- Research financial topics.

Making the Most of Your Internship

The questions shouldn’t stop once you’ve gotten hired. Here are some tips for interns to maximize their learning and contributions:

Ask Questions: Don't hesitate to ask questions to clarify tasks and deepen your understanding of financial planning concepts.
Seek Feedback: Actively seek feedback from your supervisor and mentors to identify areas for improvement and track your progress. This approach requires that advisors have a sharp eye on the intern’s work and that they can commit to providing detailed and constructive feedback to the intern throughout the internship.
Take Initiative: Look for opportunities to take on new challenges and contribute to the team's success.
Network: Attend industry events and connect with professionals to expand your network and learn from their experiences.
Reflect: Regularly reflect on your experiences and identify key takeaways to inform your future career path.

Best Practices for Firms

For firms looking to create successful internship programs, here are some best practices to consider:

Define Clear Goals: Establish clear goals and objectives for the internship program, aligning them with the firm's overall strategic goals.
Provide Meaningful Work: Assign interns meaningful tasks that contribute to the firm's operations and provide opportunities for skill development.
Assign Mentors: Assign mentors. Build a community with your interns. You, your firm, and your employees are your intern’s welcome mat to the profession.
Offer Professional Development: Provide professional development opportunities like networking, lunch-and-learns with experts from your firm, and interactions with members of the …
Set Realistic Expectations: Advisors may need to be blunt during the interviews to ensure interns understand what will be involved in the internship. Use menial work as a teaching opportunity. I had an internship where I spent most of my time sitting in a copy room. But because I made an effort to understand the forms I was scanning and filing, I got value from that time sitting in the copy room.
Recognize the Value of Explaining ‘Why’: As is the case for advisors who want to provide service to the profession, advisors who are seeking interns to help them with their workload can also help interns by explaining their ‘Why’. Doing so is most crucial, especially when explaining the purpose and the bigger picture involved in tasks they are assigned - whether they involve the form they’re copying, the file they’re stuffing, or the archives they’re…archiving.
Supplement busywork with career-development opportunities: Advisors naturally want interns to benefit from their internship and be excited about the profession. Some advisors may want to develop relationships with a local university by contracting certain professors for special assignments, or perhaps they have a vested interest in their alma mater. Here’s the most important thing to remember: interns are going to return to school at the end of the summer. And they’re going to talk. Good, bad, or ugly, professors and fellow students will hear about interns’ experiences. Once advisors have identified why they need or want interns, they need to identify some best practices to ensure their internship program is successful.
Evaluate and Improve: Regularly evaluate the internship program and make adjustments based on feedback from interns and employees.

The Future of Financial Planning Internships

The financial planning industry is facing a talent shortage, with the average age of financial advisors rising. Hiring interns and running an excellent internship program takes time and money, but just as we speak to our clients about dividends and interest rates, I challenge advisors to think about internships as an investment. This summer’s interns are next year’s colleagues. In a decade, they’ll be the movers and shakers. A decade after that, they will be our profession’s leaders.

To address this challenge, firms must invest in developing future talent through robust internship programs. COVID opened up opportunities for firms to expand not only how they think about work in general but also how they specifically conduct internship programs. From 2020 until now, we have learned the lessons that can make internships better, more intentional, and more productive experiences for both firms and students.

By embracing innovation and adapting to the changing needs of both interns and the industry, firms can create impactful internship programs that shape the future of financial planning.

tags: #financial #planning #internships #requirements