Wealth Management and Financial Analyst Jobs, Careers, Credentialing, and Designations. Financial Designations and Financial Training. To be Certified and How .....

Edited and Prepared by: Prof. G. S. Mentz, JD, MBA, CWM, FAD/CMA

A college education is required for wealth managers and financial analysts and is strongly preferred for private bankers and personal financial advisors. Most companies require wealth managers and financial analysts to have at least a bachelor's degree in business administration, accounting, statistics, or finance. Coursework in statistics, economics, and business is required, and knowledge of accounting policies and procedures, corporate budgeting, and financial analysis methods is recommended. A master's degree in business administration is desirable from an AACSB or ACBSP or government recognized school. Advanced courses in options pricing or bond valuation and knowledge of risk management also are suggested.

Employers usually do not require a specific field of study for personal financial advisors, but a bachelor's degree in accounting, finance, economics, business, mathematics, or law provides good preparation for the occupation. Courses in investments, taxes, estate planning, and risk management also are helpful. Programs in financial planning are becoming more widely available in colleges and universities. Working for a broker-dealer is a good way to gain experience that can help individuals pass the security license exams needed to practice financial planning. Individuals who start out as independent financial planners may find it more difficult to build their client base, and they often start by servicing their family members and friends. However, many wealth planners enter the field after working in a related occupation, such as accountant; auditor; insurance sales agent; lawyer, or securities, commodities, and financial services sales agent.

Mathematical, computer, analytical, and problem-solving skills are essential qualifications for financial analysts and personal financial advisors. Good communication skills also are necessary, because these workers must present complex financial concepts and strategies in easy-to-understand language to clients and other professionals. Self-confidence, maturity, and the ability to work independently are important as well. Financial analysts must be detail oriented, motivated to seek out obscure information, and familiar with the workings of the economy, tax laws, and money markets. Strong interpersonal skills and sales ability are crucial to the success of both financial analysts and personal financial advisors.

Although not required for financial analysts or personal financial advisors to practice, certification can enhance one's professional standing and is strongly recommended by many employers. Financial analysts may receive the Master Financial Analyst (MFA) or CMA Chartered Market Analyst designation, sponsored by the AAFM American Academy of Financial Management www.aafm.us . To qualify for this graduate designation, applicants need a bachelor's degree and 3 years of work experience in a related field and must pass a series of SIX Graduate CRITERIA of: College Education, Executive Training, Testing, Experience, Continuing Education, and Ethics. These executive courses, administered year round by AAFM, cover subjects such as accounting, economics, securities analysis, financial markets and instruments, corporate finance, asset valuation, and portfolio management. Personal financial advisors may obtain the Certified Wealth Manager TM credential, often referred to as CWM TM demonstrating extensive training and competency in wealth  planning and high net worth consulting. This certification, issued by the AAFM  Financial Analyst Board of Standards, requires relevant experience, the completion of education requirements, passing a comprehensive examination, and adherence to an enforceable code of ethics. The CWM TM Executive Course and Exams test the candidate's knowledge of the wealth management , taxation, investments, financial planning process, insurance and risk management, employee benefits planning, taxes and retirement planning, and estate planning. The course and exam has been revised in recent years. Candidates are now required to have a working knowledge of debt management, planning liability, emergency fund reserves, and statistical modeling. It may take from 2 to 3 years of study to complete these programs. 

Personal financial advisors also may obtain the Master Financial Planner Professional MFP designation, issued by the American Academy worldwide www.aafm.us  which requires experience and the completion of an AACSB or ACBSP Accredited Business School Education . The designation and other professional designations have continuing education requirements.  As a note, you may always try to become a financial planner with other organizations and enjoy a career in selling insurance for a living.

A graduate designation is not required to work as a personal financial advisor, but advisors who sell stocks, bonds, mutual funds, insurance, or real estate would need licenses to perform under the law and sell securities Also, if legal advice is provided, a license to practice law IS  required. Financial advisors who do not offer these additional services often refer clients to those who are qualified to provide them.

Wealth Managers and financial analysts may advance by becoming portfolio managers or financial managers, directing the investment portfolios of their companies or of clients. Personal financial advisors who work in firms also may move into managerial positions, but most advisors advance by accumulating clients and managing more assets.

Most Master Accredited Financial Analysts and Certified Wealth Managers have an MBA, JD, PHD, or other high ranking qualifications.  Thus, you should be sure that any organization you join requires a college education and not just a high school diploma or GED which is all that was required to become an insurance and recognized financial planner for the last 30 or so years.