Top 10 Financial Certifications to Get in 2020
April 1 2020 - Ushering in the new decade with a new business certificate is the right way to kick off the next ten years. However, there are so many financial certifications; to complete all of them is virtually impossible.
From CPA, CLU to ACCA, these financial certifications seem more of a play of alphabets than actual courses. Choosing a business certificate to pursue may be quite a challenge, especially if you're unfamiliar with business.
Most people pursue financial certifications to define their career path. These certificates are crucial to landing jobs in business or finance. For some people, they take these business courses to supplement their career, some of which might be only remotely related to business or finance.
Others are business owners who want to learn more about the inner workings of business and finance. In doing so, they streamline their business operations and plug any loopholes for greater profitability.
The bone of contention is which financial certifications are worth getting. With so much to choose from, it's hard to pin down on just one. This piece will highlight ten of the most marketable and useful financial certifications to help you make a more informed decision.
Financial Certifications Worth Your Time and Money
The reason why some people hate business meetings is because of the financial jargon folks throw around. It's very embarrassing to admit ignorance. In such scenarios, your best option is to sit quietly and feign comprehension.
However, the next few years will be different, because you're enrolling in a business class. The only problem is, you can't pin down one class from the many options. Here are some of the ten if the best financial certifications you should consider, in no particular order.
1. CFA- Chartered Financial Analyst
Pursuing this course makes you an expert in the field of insurance, securities, and investments. The class is very rigorous and comprehensive. On finishing, you should have a good mastery of ten investment topics.
Career paths include investment management, credit analyst, a consultant, among others.
2. CLU- Chartered Life Underwriter
The best insurance agents usually have this certification. So if you plan on being one, then CLU is just what the doctor ordered.
However, it won't be a walk in the park if you choose to take CLU. Brace yourself for eight courses that the American College of Financial Planning administers. Five of these courses are compulsory, then three of them are elective.
Fortunately, you won't have to take any board exam on concluding your CLU class. After CLU, you can seek a career as a risk manager, estate planner, among others.
3. CAIA- Chartered Alternative Investment Analyst
The CAIA association runs this program for professionals in alternative investments. These alternative investments include hedge funds, private equity, and venture capital. It's a short program that only takes a year to complete.
CAIA includes comprehensive coursework and exams. Think of CAIA as a supplementary certification that enriches your portfolio.
4. CPA- Certified Public Accountant
One of the more popular financial certifications, CPA, is an incredible portfolio-booster. CPA is a requirement for accountants in most states. The exam is pretty rigorous, and so is the coursework, but the latter only takes about 150 hours.
Business owners also have a lot to gain from a CPA class. It offers sound and objective financial advice on aspects of business like taxes and investments.
5. FRM- Financial Risk Manager
Banks are a magnet for anyone who holds this FRM certification. A financial risk manager's specialty is in financial risks, thus making them a crucial asset for banks.
To qualify for FRM certification, you must pass a multiple-choice exam that takes eight hours. This exam is split into two parts. Don't let the multiple-choice aspect exam fool you; the exam is pretty difficult.
In fact, it has a pass rate of below 50%. So prepare yourself adequately to pass the exam. Career paths after FRM include risk analysts, global asset-liability managers, or you can analyze risks for private clients, among others.
6. CMFC- Certified Mutual Funds Consultant
If you want to be an expert in mutual funds, then CMFC is the certification for you. CMFC entails ten weeks of coursework after which candidates must take an exam and pass.
On completion, you will have a firm understanding of the intricacies of mutual funds and other investment products.
Any mutual fund investor needs a certified mutual funds consultant for maximum returns.
7. ChFC- Chartered Financial Consultant
This course will take about four months to complete. It is an excellent alternative to the more popular Certified Financial Planner. It's more like a deeper dive into CFP or an extension of the same.
Think of a chartered financial consultant as more of a specialist in some sense. A CFC handles stuff like divorce cases and issues of inheritance.
The American College of Financial Services administers the ChFC test.
8. CIC- Chartered Investment Counsellor
A CIC complements an extensive portfolio and demonstrates almost elite financial proficiency. People in investment counseling or portfolio managers are good candidates for CIC.
Before you take CIC, you must have at least five years of experience in an IAA member firm. CIC is a facet of CFA, Chartered Financial Analyst program.
9. CFP Certified Financial Planner
Certified financial planners are polymaths of the finance field. They are well acquainted with various topics in finance.
CFP involves a set of courses that you must complete entirely. Then after that, you must take and pass an exam that takes seven hours. CFPs are in high demand because they are well versed in pretty much everything on finance.
10. CMA- Certified Management Accountant
This certification is necessary for experts in management accounting. Corporations mostly seek these experts. They rarely work with private clients.
The CMA test has two sections that test eleven crucial financial skills and understanding. It won't be easy, but the certification is very rewarding.
Start Your Career in the Finance Industry With These Courses
From these ten, we believe you can lock down on one certification you think serves you well. Financial certifications usually don't take too long and open up a range of opportunities.
Business owners also have a lot to gain from these certifications. However, business owners should consider taking elementary courses, which won't take up too much time.
For more informative reads, check out our other articles.