About Wealth Management
In simple words, Wealth Management is providing financial advisory services to high net worth individuals and their families by making worthy investments for high returns, growing their financial strength, and preserving their assets efficiently. The financial advisory also supports them with a smooth transition of assets to families within. All these services get done tax-efficiently. Read on to know more about a career in wealth management and how good it is to have a dream job of most out there. Let us know ‘Is Wealth Management A Good Career?’.
Wealth Management as Career
The main goal of wealth management is to provide complete financial guidance to Clients, inclusive of investment management, tax accounting, estate management, retirement planning, and support with legal aid if the need arises. For highly affluent clients, the true savior in disguise is the wealth management. Knowing your financial strength and weakness will help you set appropriate financial goals for the future.
In recent years, we are witnessing young people choosing wealth management to start their careers. It is a precious job, wherein you get to manage a huge volume of assets and plan future financial goals to make much more of the same.
Even though the job comes with a mountain of pressure as there is huge money handling, people choose wealth management for a career to make money. Managing wealth of high value is an amount of stress, but if done right, the returns are expansive. With this profile, you are building yourself a career with excellent skills. The Bureau of Labor Statistics Occupational Outlook Handbook states that between 2020 and 2028, the employment of wealth managers will rise by 7%, which is more than the previous record.
Titles in Wealth Management
Being one of the lucrative careers in the world, Wealth Management has got some best titles, and we have listed them below for you.
- Personal Financial Advisor
This title comes with the responsibility of making decisions on the client’s wealth management. You will have to guide them on where the money can be out for better returns and what best options are available for making investments.
- Relationship Manager
The point of communication between the client and the firm is the Relationship Manager. The titleholder will convey the ideas the firm has generated for better management of the client’s financial resources.
- Investment Advisor
This title holder works closely with other roles in wealth management to curate a successive investment portfolio for Clients. The investment advisor will closely watch the returns made and make changes in due course depending on the value of the returns.
- Private Banker
Private Banker provides an in-depth analysis of the Client’s financial status and makes recommendations based on the stats for a high value of returns.
Eligibility for a Wealth Manager
Now that we have seen some of the best titles in Wealth Management, let us study in detail the eligibility criteria to start a career in wealth management.
- Educational Qualification: A Bachelor’s degree with majors in finance, economics, business, statistics, or any related field is recommended. Any Master’s degree in accounting, finance or business is recommended for senior level roles.
- Experience: While financial advisor roles take in fresher and then provided extensive training on the subjects, Wealth manager requires prolific experience in finance and accounting.
Certifications in Wealth Management
To build trust with the clients and get excellent job opportunities, certification is inevitable. For Wealth Management, the following are the topmost recommended.
- Certified Investment Management Analyst
The Certified Investment Management Analyst certification is the most recommended for financial managers, investment consultants, and related professionals in financial services. This certification assesses their ability to develop and implement appropriate financial strategies.
The eligibility requires a minimum of three years of experience in financial services. Also, it requires completing the CIMA education program from either of the University of Pennsylvania, or the University of Chicago. While it costs somewhere between $4,500 and $6,850, there is also a $600 application fee for the final exam.
- Certified Private Wealth Advisor
The Certified Private Wealth Advisor is certified for managing the assets of private clients. The CPWA exam focuses on every step of the wealth lifecycle, from accumulation to appropriate distribution.
CPWA course is accessible at both the University of Chicago, and the Investments and Wealth Institute. The costs for this course range from $5,995 to $7,390.
The eligibility for taking up this exam requires five years of experience in finance in addition to a bachelor’s degree.
- Certified Financial Planner
Certified Financial Planner is for great experienced finance professionals with an understanding of financial planning and the factors contributing to a client’s financial health in the longer run. The CFP certificate assesses your efficiency in code of conduct, regulations in accounting, education in financial services, tax planning, possible income projections, insurance planning, and appropriate investment planning. This certification is perfect for professionals to showcase general mastery skills in wealth management fundamentals.
To be a qualified CFP, you should complete the registered CFP education program along with a relevant bachelor’s degree.
- Personal Financial Specialist
The Personal Financial Specialist is apt for Certified Public Accountants. The PFS course is built on fundamentals of accounting in the field of wealth management and personal financial management. It is inclusive of Clients’ benefits planning, providing financial planning for higher education, financial planning for families, planning budget, and tax accounting.
The basic requirement for the certification is that the candidates should possess CPA certification and also a registered member of the American Institute of Certified Public Accountants.
- Chartered Financial Analyst
CFA focuses on providing exclusive wealth management recommendations and developing premium financial planning for businesses and individuals. The Chartered Financial Analyst program summarizes the primary tools for mining and serializing financial data in addition to the policies and procedures involved with asset management. The CFA certificate is a top-level accreditation that imparts finance professionals the ability to advice on appropriate investments, provide assets evaluation and handle complex portfolios.
To qualify for the certification exam, a bachelor’s degree along with work experience of 4000 hours in financial planning is required. It also requires two reference letters from other financial professionals. There are three levels to pass, and it costs $750 to $1000 each, while the application fee is $450.
How to apply for a job in wealth management?
Get your updated resume ready, clearly mentioning your strength in financial services along with the training undertaken. For students, some firms offer internship programs, where you get trained for the required profile. Many firms are providing financial services across the United States, offering plentiful opportunities for aspiring candidates.
Visit their websites and apply for a job that matches your profile and expertise. For bonus points, submit letters of reference from reputed financial professionals along with the resume. Keep yourself updated on financial trends and anything and everything that happens in investment banking. Also, be aware of the financial firms and investment banks to stay updated on competitors’ performance.
Do extensive research on job portals with requirements for job opportunities in wealth management. That will help you understand what they expect from you. Be socially active and keep your LinkedIn profile updated. Expand your network in financial services by virtually connecting with peers.
Private wealth management
One of the hottest career choices in Wealth Management is the job of a private wealth manager. It is offering tailored financial services to individuals rather than corporates and businesses. High-affluent families hire private wealth managers to work exclusively for them. A private wealth manager will have to assess the assets accurately, set appropriate financial goals, make proper investments, and amplify the financial status of their clients.
This is one of the best-paid jobs in wealth management, and it comes with a great amount of pressure. You are expected to make the right moves, and every step accounts for credibility. With the increase of global wealth, private wealth has also hit higher, and demand for private wealth managers is never-ending. The need for such jobs is always open, and it is a flourishing career choice.
In the United States, the average salary of a private wealth manager is $95k per year, and it varies depending on the state and experience. The top firms offer their private wealth managers a whopping $900k per year with minimum accounts. For interns with no prior experience in the field, the top firms offer $14 to $19 per hour.
Benefits of a career in wealth management
As long as money exists, careers in Wealth management will always be flourishing, and some benefits come with the job.
- When you work on maintaining high assets, you are likely to earn money too. Apart from the monthly payments made by the firms, you get additional commissions through investment planning and product recommendations.
- It is a lucrative career and a respectful profile.
- As you gain experience over the years, you are likely the most wanted in financial services.
- Though the job comes with high pressure, high returns give you job satisfaction. There is nothing like seeing your client earning a lot of money because of you.
Top wealth management firms in the USA
If you are looking to start your career in wealth management, we have listed below the top wealth management firms in the USA.
- UBS Wealth Management – A Swiss company spread across 50 countries, has 286 branches in the United States. They provide services to highly affluent individuals, families, and businesses. They also cater to the financial needs of top investment banks.
- Morgan Stanley wealth management- Another top financial service company in the USA with over 16500 wealth managers in 600 branches. They manage the assets of individuals, families, and industries. In 2020, they expanded their business to Canada.
- Bank of America Global Wealth and Investment Management – offers two types of clients, those with over $250,000 net worth and highly affluent clients. They have more than 20000 wealth managers taking care of their clients.
- Wells Fargo- one of the top wealth managers of the United States with headquarters in San Francisco. When Credit Suisse left the USA, all the businesses of Credit Suisse were passed onto Wells Fargo.
Difference between a financial advisor and wealth manager
Often there is a slight misunderstanding in the roles of a financial advisor and wealth manager. Even though they both sound the same, there is a thin line difference between them. A financial advisor helps make financial decisions including how to make more money out of strategic moves and ways to invest money for high returns.
A wealth manager takes care of persona, family, and social capital and grows your assets wisely with proper investments.
While the job of a financial advisor is risky, wealth management pays more with less pressure. A financial advisor is required to handle finances alone while a Wealth manager is expected to handle assets and wealth in all forms.
Any job in wealth management is promising as it is always a step to bigger titles. Being associated with big financial firms will help make better financial goals and learn all about money. It is not just about money, but, helping the rich preserve their money.
Conclusion
This summarizes how great it is to have a career in wealth management. Any profession related to financial services is seen as a respectable profile and has a huge potential for a career growth. Our article will help you find the right title that suits your profile.
Frequently Asked Questions
- What is the qualification for entry-level jobs in wealth management?
Any bachelor’s degree with a major in finance, accounting, economics, or business will be sufficient for entry-level jobs. Most wealth management firms hire freshers and then provide training.
- What does an intern do in wealth management firms?
Interns will be trained with hands-on experience by shadowing the team of financial advisors and assisting the team with special tasks.
- Is wealth management stressful?
Yes, any job in wealth management is stressful as you are dealing with money. It requires utmost care and skillful move to bring good returns on investments.
- How to choose the best certification for my career in wealth management?
Do the research and set goals for the next ten years. Choose which certification can support you with reaching your goal. For example, if you want to become a private financial advisor, the certification for a financial advisor will help you reach your goal.
