What Certification Do I Need to Give Investment Advice?
Personal financial advising is one of the fastest-growing occupation’s in the country, notes the U.S. Bureau of Labor Statistics. A personal financial adviser is qualified to give investment advice to clients and help them with other financial issues, such as planning for retirement or purchasing disability insurance. Certification is not required for advisers, but it is recommended by many employers.
Other People Are Reading
-
Benefits
-
Certification is beneficial for financial advisers because it can provide a competitive advantage when seeking employment. The Certified Financial Planner Board of Standards, Inc., the association that awards the CFP credential, notes that certified advisers can use the “CFP” designation when marketing themselves, and certified financial planners are often sought out by clients who need investment advice.
Eligibility
-
To become a Certified Financial Planner, you will need to hold a minimum of a bachelor’s degree -- any major is acceptable. The degree must have been earned from an accredited U.S. institution, or a foreign university that meets U.S. equivalency requirements. Candidates also need to meet the CFP Board’s education requirement. This can be done by taking credit or non-credit college courses, enrolling in a certificate program or applying for challenge status. Challenge status is granted to candidates who hold advanced degrees or credentials, such as a doctorate in economics, a CPA license or an attorney’s license.
-
Features
-
The CFP certification exam is offered three times each year and covers topics including investment planning, taxes, risk management and the financial planning process. You will need three years of financial planning work experience, and you are required to adhere to the CFP Board’s ethics code. In addition, you will have to pay several fees. As of September 2011, CFP candidates are required to pay a $100 initial certification fee, a $595 examination fee and a $325 annual certification fee.
Potential
-
The U.S. Bureau of Labor Statistics estimates that employment for personal financial advisers will grow by 30 percent through the year 2018. As more people reach retirement age, they will seek out investment services. Jobs for personal financial advisers will also be created as more companies implement personal retirement savings plans, which employees may need help in managing. The bureau does note, however, that competition will be keen for available positions -- candidates who have a college degree and are certified will enjoy the best employment opportunities. As of May 2010, personal financial advisers earn an annual mean wage of $91,220, according to the bureau’s Occupational Employment Statistics survey.
-
