What certification fits your finance career plan?
Approximately 40% of accounting and finance professionals have a specialized certification. It’s no secret that certifications can give you an advantage in the job market. It demonstrates commitment to your profession and expertise. Most everyone knows of the CFA, but there are other options you should explore.
Certified Financial Analyst (CFA)
The CFA is considered one of the most challenging and prestigious credentials for investment managers. If your career path involves finance and the investment world - this is your certification. Most CFAs are professionals working for a hedge fund or investment fund. Although more popular in Europe and Asia, it has picked up quite a bit of traction in the US over the past few decades.
The CFA also benefits Controllers and CFOs because it helps train you to think analytically about finance, investing, and how busiensses operate. So if you’re headed for private industry, take some time to explore this option. To earn this designation you must:
Pass exam levels one, two and three. The test increase in complexity by level ending with level three testing how to synthesize and apply the standards in a portfolio management and compliance context. The exam is much longer than the CPA and costs more.
Have a bachelor’s degree or be in the final year of your bachelor’s program.
Have approximately two years of applicable professional work experience. This does not have to be investment related. You can also have a combination of experience and education.
Certified Financial Planner (CFP)
The CFP is one of the most widely recognized credentials in the financial planning industry. To receive this designation you must:
Have a bachelor’s degree with courses on insurance, estate, retirement, education, tax, and investment planning.
Pass the 10 hour exam that spans two days and includes two comprehensive case studies.
Obtain three years of professional experience.
Chartered Investment Counselor (CIC)
The CIC focuses on portfolio management. To earn this designation you must:
Have already earned a CFA.
Currently work as an investment advisor.
Work for an Investment Adviser Association member firm.
Submit professional and character references.
Chartered Life Underwriter (CLU)
The CLU is for those who work in field of life insurance for business and estate planning. To earn this designation you must:
Complete five courses plus three additional elective courses.
Other Options
Other options you may want to research include:
Chartered Financial Consultant (CHFC)
Certified Investment Management Analyst (CIMA)
Personal Financial Specialist (PFS)