Should You Pursue a Financial or Insurance Designation?

As an insurance agent, financial planner, financial analyst or other profession, you may decide to pursue a designation in order to increase your financial and/or insurance knowledge. While many of these designations are recognized by the general public, such as the CFP or CLU, how do you know if you need one? In addition, which designation should you pursue?

If you are thinking about pursuing a designation, you should ask yourself these following questions:

1. Will getting this designation help me to better serve my clients?

2. Does my job require this designation for continued employment?

3. Will this designation allow me to find a better job, hence a higher salary?

4. Does this designation increase my credibility among potential clients?

5. Do I have time to pursue this designation?

Clearly, the first question listed above is the most important reason to pursue a designation. Before you consider the financial gains that a designation can bring, your decision to pursue this designation ought to center around helping your clients.

At some businesses, you might be required to finish the CFP or CPA, depending on your job function, within your first 18 months of employment. Otherwise, you could receive a job termination notice. Be aware that some designations also have prior education requirements in order for you to use the marks; therefore, you need to do your research before signing up to pursue any designation.

You can improve your salary by earning a financial and/or insurance designation. Individuals that possess the CFA, CFP or CPA, on average, are among the highest paid workers in the financial service industry. While many of these people are self-employed, there are numerous salaried individuals with the above-mentioned designations who earn $70,000 to $150,000, annually.

A financial planner may become a CFP because the designation will improve his or her credibility. The public has a certain image of a CFP. Usually, people assume a CFP is wise and knowledgeable about financial planning. Many people will not choose a financial planner that is not also a CFP.

Lastly, do you have time to pursue a financial and/or insurance designation? Many of the well known designations may require you to study at least 100 hours, per test. As a result, it can be difficult to balance your work schedule and time to study. However, if you are serious about gaining a financial service designation, you will find time!