HomeFacultyContact

       

THE KNOWLEDGE OF WEALTH

Related Articles

Stacking Skills: 
Getting Finance Certifications

By Dana Mattioli from The Wall Street Journal FINS
03/09/2010

With the economy being as shaky as it is, it's the perfect time for financial professionals to get industry certifications, whether they are currently working or out of a job. Experts agree that going after certifications such as CFAs, CPAs, Series 6, 7, 63, 26, etc., show management that you're serious about your career and the success of the firm you work for. For finance professionals out of work, going for these certifications can help you stand out from the other job hunters you are competing with.

For finance professionals that are currently employed, you can determine which certifications to take by looking at the upper management in your firm, says Lynn Berger, a career coach based in New York City. If you plan on moving up within your firm and all the managers have a specific certification, you should also consider acquiring that certification. Aside from making you more valuable in your current position, should you become laid off, having certifications will make you more marketable.

The Certifications Edge
Don Wylie, managing partner of the accounting and finance division for recruiting firm Lucas Group's Dallas office, says job candidates with certifications or those in the process of receiving them have an edge over other job hunters. "It's well-respected across all lines, it shows an employer that you can dig out the details you need to be effective in any accounting job," he says.

"I can't tell you how many job orders have come into us where a certification is a requirement," says DeLynn Senna, executive director of North American permanent placement services for Robert Half International, an executive recruitment firm specializing in finance and accounting.

Similarly, going for certifications will help you answer a question that the hiring manager will inevitably ask you while on interviews: "How have you been spending your time since your layoff?" Having an answer that shows you've spent the time usefully by improving your skills and making yourself more valuable, will show recruiters and hiring managers that you're motivated.

For employees currently in their jobs, acquiring industry certifications sends the signal to management that you value your job and are looking to improve your skill set.

Over the course of the next year, Tim Zheng, a 24-year-old investor relations representative with a New York mutual fund company, plans on taking his Series 63, 26 and Certified Financial Analyst Charter. He already holds a Series 6. His firm is requiring that he take the 63, but the 26 and CFA are voluntary. Zheng says that the 26, a securities license that allows the holder to supervise sales activities, is required of those in management roles. By having that under his belt, he hopes it could expose him to more responsibility and one day set him up for a management position. Similarly, he hopes that passing the CFA will make him more flexible and broaden his skill set.

Prerequisites and Requirements
For people currently on the job market, it's a great time to throw themselves into the books and nail down any prerequisites they need before signing up for accreditation. For example, accountants need a set amount of accounting credit hours before taking the Certified Public Accounting test.

Learn the requirements for the state that you live in and work on completing the credits necessary to take the test in the newfound downtime you have.

Some tests also have requirements regarding your practical experience. Go to the Web site of the organization that administers the test and learn of these requirements as well, says Senna. If they don't list the requirements on the site, she suggests calling the organization directly.

Professional Help
If you have some time off, you should enroll in a preparatory class that would otherwise be difficult to juggle when you were working full-time. Some well-respected preparation courses are Kaplan, Gleim and Becker, says Senna. She suggests speaking to the sponsoring organization that provides the test and asking for recommendations based on the exam.

Keep in mind, each service has a different way of approaching the exam with differing prep times, course loads and costs. Research which program best suits your needs and study style.

Studying for a certification could also help laid off professionals with the psychological aspect of being out of work. Berger says studying for certifications gives laid off professionals a sense of purpose and routine which they often miss from not being in a work setting. "It's really important to take that idle time and put it toward something useful," she says. "It will help your resume but also make you feel like you're accomplishing something."

Benefits
Certifications can give job candidates higher earning power. A study conducted by Robert Half International found that individuals who earn professional industry-recognized certifications are often paid 10% above the market rate than other individuals in the same position.

For employees who take the initiative to get certified, especially those that are client-facing, the efforts do not go unnoticed. "It's a favorable thing for employees to be proactive and hone their skills," says Deborah Campdera, national director of experienced recruiting with accounting firm Grant Thornton.

Also, being certified reflects well on your company. Senna says that having employees with certifications is a great recruiting tool because employers like to say how many people on their team are certified.

---

As with anything, good judgment is important. Joe Saluzzi, partner at Themis Trading, an institutional agency brokerage firm, based in Chatham N.J., says that having certifications pertinent to the industry you work in is key. There's no advantage to getting esoteric licenses that are not relatable to your job other than padding the resume, he says.

 

Wealth Management Hiring Information

By FINS from The Wall Street Journal


    They used to call them stockbrokers. Today, these same professionals go by more vaunted titles such as wealth managers, investment advisers and private bankers.
    The name change reflects the evolution of the money management business over the past several decades. The vast increase in wealth across the United States has spawned a wealth management industry that provides an array of services to individuals and families with sizable assets - for a sizable fee.
    The account minimums vary, but those considered "high net worth individuals" are typically those with liquid assets of more than $2 million to invest. Some firms will work with clients that have $250,000 in liquid assets. Services range from the pedestrian (checking accounts, mutual fund investing) to the more complex (asset allocation, estate planning, private equity funds).
    But the industry stands at a crossroads. After a 25-year or so run of solid investment performance, the wheels have come off the money-management business. The Great Recession, or whatever this steep downturn is ultimately called, has made people question the soundness of entrusting other people to manage their money. "I could have lost this money by myself, why am I paying someone to do it for me?"
That said, a need for smart and trustworthy professionals with an expertise in managing other people's money will always exist.

WHERE THE ACTION IS
    It might seem counterintuitive, but in a time when so much wealth has been destroyed, the market for money managers is hot. Banks recognize that people need somewhere to put their money, and in the age of Bernie Madoff they're looking to large institutions where their money is perceived as safe.
    In February, the industry collectively gasped when UBS Financial Services Inc. said it had hired more than 200 brokers in the fourth quarter of last year, one of the worst periods for the financial markets since the Great Depression. The Swiss bank paid big bucks, too. It hired a team from five managers in Dallas from Goldman Sachs Group Inc. with $4 billion under management, and a team five from Morgan Stanley in Houston with about $2 billion. UBS poached these professionals by offering them signing bonuses of as much as 260% of the revenue they generated for their firms over the past year. Top brokers can bring in at least $1.5 million to $2 million per year.
    With the upheaval at the large investment banks over the past year, the market is particularly fluid at the moment, with large firms bidding for brokers across Wall Street. Merrill Lynch & Co. Inc., which has one of the largest wealth-management businesses, sold itself to Bank of America Corp.. JPMorgan Chase & Co. and Barclays PLC enveloped the brokerage units of Bear Stearns and Lehman, respectively.
    Some of these firms are adding brokers during a time of economic weakness in the hopes that they can gain market share by stealing away unhappy customers from other banks.

CAREER PATHS
    Are you a litigator at a big law firm who spends all day checking your stock quotes when you should be drafting interrogatories? Or maybe you're a computer saleswoman who has more interest in the yield curve than software code? Or perhaps you're a commercial real-estate broker obsessed with tax planning?
If you answer any those "yes," wealth management might be the right career for you. But the real point of that string of questions is to emphasize that there is no clear path to getting into the wealth management business.
    While there is a small group of professionals that start out as junior analysts and work their way up to become full-fledged investment professionals, many move laterally from other fields, as well as from other areas within their banks. So a globetrotting investment banker looking to have more steady hours might look to move into a private wealth management role. Or a derivatives saleswoman who wants to work with a broader range of investment products might be a good candidate for the business.
    A maxim of the wealth management world is that people will give you their assets to manage "if they like you, trust you and think you can make them a little bit of money -- in that order." While it will have you dealing in sophisticated financial matters, at bottom the job is about selling yourself and serving your client's interests. Keep that in mind when exploring opportunities.

GETTING THE JOB
    To persuade wealthy individuals to hand over their money to you, you have to be polished, persuasive and persistent. Those qualities will serve you well in trying to break into this field.
    Networking is a huge component of the private wealth management job, and you can also put these skills to work in finding one. Continue to build professional relationships and a referral network of attorneys and accountants. These professionals routinely work with many private wealth management professionals and can possibly help you get your foot in the door.
    Many of the top firms have excellent training programs that teach you the business before sending you out to gather assets. To score a job at some of the larger firms such as Goldman Sachs or Morgan Stanley, a graduate degree is required. In other cases, firms might require that you already have prior experience as a financial advisor with a "book of business" that you will bring along with you.
    Finally, learn all you can about rich people. Just as wannabe cardiologists master the human heart and tax lawyers-in-training study the internal revenue code, you should become an expert in the ways of the wealthy -- they are your subject. For starters, pick up a copy of "Richistan," a 2007 book by The Wall Street Journal's Robert Frank. The book does a deep and entertaining sociological dive into the lives of the new rich in America, shedding light on what will hopefully be your future client base.

 

Training

Customized training programs in tax and accounting fit for both corporations and individuals.