Why Real-World Financial Planning Experience Is the Key to Success

Building a successful career as a financial planner doesn’t happen overnight. Completing your education and earning your CFP® certification can take a while. But once you’ve completed these steps, you’re ready to start working with clients, right?

Well, maybe. But for many planners, there’s a significant gap between completing the educational requirements and actually feeling ready to confidently navigate real client scenarios.

If you’re a new planner who feels overwhelmed by the idea of running a client meeting or developing a financial plan for someone with a complicated situation, you’re not alone. And it’s not your fault!

Traditional financial planner education is valuable, but it doesn’t always do a great job of showing you how to apply foundational concepts to real-world scenarios.

How do you bridge that gap? How do you gain the real-world financial planning experience you need to impress employers and confidently work with clients?

Let’s discuss why hands-on experience is so important and how you can build practical skills early in your career.

Top Challenges for New Financial Planners

Most financial planning programs provide in-depth training on technical subjects. Tax strategies, investments, retirement accounts, estate planning — these topics are usually covered in great detail in financial planning curricula.

But most planners don’t have the chance to dive into practical applications of those theoretical concepts during their training. They don’t get to practice decision-making or use industry tools to address the complicated issues that most clients face.

So it’s normal for new planners to feel unprepared for various aspects of the job:

Using industry software: Many firms expect planners to feel comfortable with industry tools like eMoney, Morningstar Advisor Workstation, Redtail, EncorEstates, and Asset-Map. But licenses for these platforms are usually expensive, so most schools don’t provide them or cover how to use them.
Navigating complex client conversations: Financial discussions with real people are often emotional. Clients may be hesitant, skeptical, or even hostile, and textbooks can’t teach planners how to react in those challenging situations.
Making data-driven decisions: Financial planning is a mix of art and science — there isn’t a set cookie-cutter solution for any given client. Planners need to approach situations with nuance and use the specific details of a client’s situation to determine the best course forward. Textbook examples can’t possibly cover all the potential scenarios a planner will face, so it’s hard to feel confident about developing a customized plan for a client.

Planners can deepen all of these skills through hands-on experience as their careers progress. But this creates a chicken-and-egg scenario — without practical experience, how do you land that first job to gain the experience you need to impress firms and confidently work with clients?

Real-World Experience Builds Confidence and Key Skills

Working with real clients helps planners gain these essential abilities:

Decision-making: Planners can learn how to use critical thinking and problem-solving to address complicated financial situations.
Communication: Client meetings give planners the chance to ask essential questions, practice active listening, and build trust.
Coaching: Money is a complicated topic for many people, and clients don’t always make rational decisions. Planners can learn how to provide encouragement and compassionate guidance.
Using planning software: Hands-on practice helps planners get the most out of these powerful tools.

Experienced planners can guide their clients confidently because they have built technical knowledge and vital soft skills throughout their careers. How can new planners gain the same experience?

The Externship Offers Real-World Financial Planning Experience

While traditional internships can provide vital hands-on experience, many new planners don’t have the opportunity to participate in one. The Externship is designed to offer similar benefits in a virtual environment.

During this 8-week online training program, participants get crucial real-world exposure through a variety of innovative features:

Real client meetings: Externs work through real financial plans from actual clients to learn the practical applications of textbook principles.
Hands-on software training: Students get access to eMoney, Asset-Map, Morningstar Advisor Workstation, Redtail, and EncorEstate plus guidance from industry experts.
Guidance from experienced professionals: Participants hear from dozens of professionals in various corners of financial planning who provide unique perspectives on client work.
A supportive professional network: The Externship helps planners of all experience levels connect with peers, mentors, and potential employers, setting the stage for continued career growth.

Who Benefits Most from The Externship?

The Externship is open to anyone and everyone who has an interest in financial planning. This unique training program is especially advantageous for…

New financial planning students who want to learn more about the industry.
Recent graduates who want to gain real-world experience before landing their first job.
Career changers who want to build confidence and gain new skills before transitioning to their next role.
Parents returning to the workforce who need experience hours and learning on a flexible schedule
First-year financial planners who lack confidence in client interactions and want to learn how to apply their technical knowledge on the job.

We also have a large group of veterans who join every year, as well people who are disabled or can’t find in-person learning opportunities.

Whether you’re just starting to consider a career in this profession or are a seasoned financial planner, you’re welcome at The Externship! Remember, there’s always more to learn.

Grow Your Financial Planning Career With Real-World Experience

Financial planning is facing unique challenges — nearly three-quarters (71%) of new planners leave the profession within 5 years. McKinsey & Company estimates that there will be a shortage of approximately 100,000 planners in the next decade.

While those numbers imply that there are many opportunities for new financial planners, they also mean that professional requirements are higher than ever. Firms want to hire planners who can immediately step into client work with confidence, running effective meetings and using industry tools to create comprehensive financial plans.

If you want to stand out to potential clients and employers, you need real-world financial planning experience. And that’s what you’ll get at The Externship. This virtual, asynchronous program allows you to learn new practical skills, practice with software, and see essential planning techniques in action — all from the comfort of your couch!

If you want to prepare yourself for continued success in this profession, The Externship is the place to be this summer. You’ll hone your skills and gain confidence so you’re ready to serve your clients well. Registration for the 2025 Externship is open now — sign up today!