Bachelor
of Science in Finance
Financial advisors work with clients
on their short- and long-term financial goals by guiding them in decisions
about investments and insurance and helping them understand tax laws. A
bachelor's degree program in finance or a related field, such as accounting,
economics or law, can give aspiring financial advisors a basic understanding of
financial markets, as well as various fiscal management techniques.
Educational
Prerequisites
A high school diploma and minimum
standardized test scores typically are needed for admission to a bachelor's
degree program. Those seeking to major in finance or a related field also
should show proficiency in mathematics and basic accounting.
Program
Coursework
A bachelor's degree program in finance
provides students with straightforward financial knowledge while introducing
them to high-level economic theory. Courses might include:
- Risk management
- Financial accounting
- Corporate finance
- Operations management
- Investment management
Employment
Outlook and Salary Info
With minimal requirements for entry
into the field and a median salary of $69,050 as of 2008, competition for
personal financial advisor positions was expected to be keen, according to the
U.S. Bureau of Labor Statistics. The BLS predicted job opportunities for
personal financial advisors would grow 30% between 2008 and 2018, creating more
than 62,000 new positions.
Licensure
and Certification
Possessing Series 7 and Series 66
licenses from the Financial Industry Regulatory Authority (FINRA) qualifies one
to register as an investment advisor and general securities representative.
Additionally, financial advisors can boost their marketability through various
voluntary certifications, such as Chartered Financial Analyst (CFA) or Certified
Financial Planner (CFP). The latter requires a bachelor's degree, three years
of related experience and a passing score on an exam.
Master
of Science in Finance
A Master of Science in Finance might
be beneficial for financial advisors seeking jobs at more competitive firms.
This degree generally emphasizes the theoretical facets of finance and delves
into high-level economic analysis formulas. Some institutions offer more
specialized Master of Finance programs, with concentrations available in such
areas as insurance and risk, real estate and asset management.
Educational
Prerequisites
Applicants to graduate degree
programs in finance generally must have an undergraduate background in finance
or a related field. Graduate schools also usually require recent Graduate
Record Examination (GRE) scores, a resume and 2-3 recommendation letters.
Program
Coursework
Common finance courses at the
graduate level might include:
- Finance theory
- Financial engineering
- Advanced corporate finance
- Mergers and acquisitions
- Advanced accounting
Would you like to know how to become a financial
advisor? The information below is meant to guide you through the education
and licensing necessary to become a financial advisor. As a financial advisor,
you'll work with people a lot. So you'll need to be confident in approaching
and talking to people. In most cases, it takes many years to build up a
customer base to provide you with a high paying income. To begin, you'll want
to carefully consider your education.
During that time, you may participate in
internships at a variety of financial companies to give you an idea of the type
of business you want to work for. Upon graduation, many people consider finding
a personal mentor who can help you take your formal education and transform it
into practical business know-how within the finance world. In order to be
successful, and progress along the career path of a financial advisor, you must
understand how to prospect for new business/customers, and focus on growing your
book of business.
While many advisors start by working for larger financial-services firms, about 1 in 4 work for themselves, often building up expertise in specific areas, such as retirement planning or financial planning for small business owners. The National Association of Personal Financial Advisors notes other specialties as well, including planning for same-sex couples, newlywed investors and individuals with special needs.
Financial advising jobs are expected to be one of the faster-growing occupations over the next decade, with a projected growth rate of 32 percent between 2010 and 2020, according to the Bureau of Labor Statistics. During that time frame, 66,400 jobs are expected to be added to the 206,800 jobs that already exist.
The impending retirements of 78 million baby boomers are expected to create strong demand for advisory services. However, two other trends could complicate the forecast. The market meltdown of the most recent recession left many people deeply suspicious of financial professionals, and the growth of online Web tools, many of which are free, might replace the need for one-on-one consults for some consumers.
