There are no formal degree requirements for people working as financial advisors. The Certified Financial Planner Board of Standards, however, does require that those holding its Certified Financial Planner, or CFP credential also hold at least a bachelor's degree. There is no requirement that the bachelor's degree be in any specific field, though, provided the certificant has completed the courses in the Certified Financial Planner curriculum. There are a number of educational programs that are directly related to the financial planning field, however.
Master of Science in Financial Services
The American College offers a Master of Science in Financial Services degree program as part of its course offerings. The American College has a long history of providing educational programs primarily to those coming from the insurance industry. The program requires intensive study of tax planning, estate planning, portfolio theory and analysis, executive compensation plans, retirement plans and business valuation. The plan also requires study in ethics and human values as well as the all-important field of communication. Similar programs are also offered by universities across the country, both on campus and via the Internet.
Bachelor of Science in Financial Planning
Many colleges and univesities offer a bachelor's degree in financial planning or in financial services. These differ from degrees in economics and finance in that the focus is on the delivery of financial advice to the customer at the retail level. They prepare graduates to enter the financial planning profession, as opposed to becoming financial analysts. Bachelor's programs are numerous, and are also available on campus and via distance-learning programs.
Professional Certifications
There are a number of highly regarded and sought-after certifications within the financial planning world. The CFP program is well-known among consumers, thanks to widespread media interest. The Chartered Financial Consultant designation (ChFC) is less well known among the public, but requires more courses, including additional focus on advising the small business owner and on business succession planning. The Certified Life Underwriter designation, or CLU, is another demanding certification offered by the American College that focuses more on insurance advising than on investments.
Law Degree
Many financial services professionals have built their practice on a combination of a financial planning skill set and a law degree. This legal background allows the planner to also advise clients directly on important legal documents, such as wills, powers of attorney, and trusts. Trusts are extremely important in the charitable giving, Medicaid planning and estate planning fields, and frequently open the door to providing financal services for wealthier clients.
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