Career field in personal finance/accounting?

[Mr Nice Guy]

So I have been doing a lot of thinking about where I want to start my career in, and as of recently, I have realized I am pretty passionate about personal finance. This stems from the fact that I used to spend money I didn't have, and live paycheck to paycheck. I have been reading all the books that people have recommended here and I just tear right through them. Now I am getting a better hold on my finances and would love to help others as well.

I work at a grocery store and my company offers a 401(k) plan. It is amazing how many of my co-workers, old and young, haven't started, or do not know how to manage it or don't care. I constantly pester them and try to offer basic advice. And for my friends and family who always complain about money problems, I pester them about a budget and spending diaries.

I guess my question is, do any of you guys and gals think I could get my foot in the door doing an internship or entry level work at a financial planning place, even if I don't have a degree yet (working on associates currently, then 4 year degree)? Does anyone have experience doing this? Edward Jones has some internships for juinors, but I am not there yet. I am just thinking of my future, and I know my current job wont help with that. Robert Kiyosaki said "Never take a job for money, but for the skills you will learn," and I guess im just looking for a little motivation to bring that to fruition.

As always, thanks for any input!

[maat55]

Here is some information on how to become a financial advisor.

Financial adviser - Wikipedia, the free encyclopedia

I like you feel compelled to teach what we have learned about personal finance. I myself am not committed enough to become a CFP, I just want to point people in the direction to good financial behaviors.

Good luck with your quest.

[jIM_Ohio]

A few things, it is tough to give advice without a license of some sort. If you made suggestions on 401k allocations to co-workers, and expected to get paid for it, you would be violating all sorts of rules, starting with the investment advisors act of 1940 and possibly the securities and exchange act of 1934.

If you are interested in a career in financial planning, consider working for a tax firm (like HR block) part time, and look into careers as a financial planner (no degree needed, just pass the license tests). CFPs have a degree requirement, but the series 65 does not.

If you are interested in personal finance, consider writing a book- publishers are exempt from the 1940 advisors act (as are lawyers and investment advisors which have a license).

[sm808]

I had similar thoughts in college because I was really interested in personal finance, but as I looked into it more I realized that no job would really allow me to carry through my interests in the way I wanted to, so I'm working at an accounnting job that allows me to manage MY personal finances!

The probelem is - alot of the big investment houses require you to "fake it till you make it" and start off HEAVILY in sales - neither of which I had any interest in. It's not so much planning as sales of their products. There is definately a place and a need for this, but not up my alley. As far as smaller firms, many hire only after you have experience at a bigger firm (sort of a vicious circle!) and then then, you are limited in what you can advise. However, you may want to look into getting your Certified Financial Planning license if that is your ultimate goal. Like many have said, there are ALOT of regulations on who you can advise, etc. but this may be the best way to go.

Also - on the accounting side, you run into similar things. The most "planning" happens for high net-worth personal tax clients, but the majority of accounting majors/ MSAs/ CPAs end up at large or medium size firms doing corporate work. Lots of different ways to take this, so hopefully you find a path that you enjoy! Good luck!

[disneysteve]

I prefer to just keep giving free advice online and hope people send me money.

[Mr Nice Guy]

Jim, I took your advice today and went and had a little face to face with the district manager at my local h&r block branch. They have an 84 hour certification class that starts in the summer to become a tax professional. They hire the brightest right out of that class. If I went that route, it looks like I could be headed toward CPA status. I also read in this month's edition of "Money" magazine that accounting has an estimated growth rate of 22% between 2008-2018.

The only reservation I have about this is workload. I don't want to have to give up on school or anything.

Thanks for the advice again everybody and will let you know the outcome.

[Angio333]

I decided to change careers and go into accounting. H&R will be a great place for you to gain experience.

[jpg7n16]

Jim, I took your advice today and went and had a little face to face with the district manager at my local h&r block branch. They have an 84 hour certification class that starts in the summer to become a tax professional. They hire the brightest right out of that class. If I went that route, it looks like I could be headed toward CPA status. I also read in this month's edition of "Money" magazine that accounting has an estimated growth rate of 22% between 2008-2018.

The only reservation I have about this is workload. I don't want to have to give up on school or anything.

Thanks for the advice again everybody and will let you know the outcome.

The CPA exam also requires a bachelor's degree and a certain amount of relevant graduate hours - just to sit for the exam. (hours may vary by state)

CPA Requirements

And for Colorado: Information for First-time candidates for the Uniform CPA Examination
Licensing Requirements

So don't expect to be able to become a CPA just because you took the H&R block tax course. There'd be more work to it.

Would that be something you're interested in? CPAs are usually more tax based, or audit based. They don't do many things like "you should invest x% for retirement" or "you need x amount of insurance coverage." Or they do the prep work for a client, but don't usually communicate directly with the client.

[Mr Nice Guy]

The CPA exam also requires a bachelor's degree and a certain amount of relevant graduate hours - just to sit for the exam. (hours may vary by state)

CPA Requirements

And for Colorado: Information for First-time candidates for the Uniform CPA Examination
Licensing Requirements

So don't expect to be able to become a CPA just because you took the H&R block tax course. There'd be more work to it.

Would that be something you're interested in? CPAs are usually more tax based, or audit based. They don't do many things like "you should invest x% for retirement" or "you need x amount of insurance coverage." Or they do the prep work for a client, but don't usually communicate directly with the client.

I did a project on understanding financial statements (honestly I still don't know much at all, but I got an A on the project in my personal finance class!) From what I gathered from that, CPA's have much to do with balance sheets, income statements, etc, and their ability to be able to read them and get a good idea of a company's health by looking at their finances.

I feel like if I learn this trade, it will benefit me in the fact that I will be a better investor (knowing if a company will be sustainable to invest in,) have a stable career, and ultimately, benefit me in being able to better run my OWN business, a personal dream of mine.

As I learn more, I do understand the demanding schooling process I will need to endure to achieve it. I am ready for that. I was talking to an old family friend today at work, and told him about the H&R thing, and he told me he has his own firm here in town, and wants to have coffee and chat! He gave me his business card

I am trusting that God will lead the way, and for all you believers out there, if you could pray for me in this journey, I would appreciate it.

Thanks for all the advice!

[kork13]

I was talking to an old family friend today at work, and told him about the H&R thing, and he told me he has his own firm here in town, and wants to have coffee and chat! He gave me his business card

If you're truly interested in the CPA thing (sounds like you are--congrats on finding something that interests you, because so many people never truly do), I strongly recommend that you take this opportunity with your family friend VERY seriously! If he has an established firm in the business, and has taken interest in you, that is absolutely the best possible way to get into any career field like this where experience is everything. That's how you get started--by knowing people and building relationships with professionals in the field. If he offers you a job, internship, or whatever, he's not only providing you a way into the field, but when it comes time for you to move on, you would most likely have his highest recommendation following you. From someone with an established firm and presence in the field, that recommendation could take you far. Congratulations, this could truly be a very fortunate opportunity for you, and you should definitely take advantage of it if it becomes a possibility for you. Good luck!

[jIM_Ohio]

I did a project on understanding financial statements (honestly I still don't know much at all, but I got an A on the project in my personal finance class!) From what I gathered from that, CPA's have much to do with balance sheets, income statements, etc, and their ability to be able to read them and get a good idea of a company's health by looking at their finances.

I feel like if I learn this trade, it will benefit me in the fact that I will be a better investor (knowing if a company will be sustainable to invest in,) have a stable career, and ultimately, benefit me in being able to better run my OWN business, a personal dream of mine.

As I learn more, I do understand the demanding schooling process I will need to endure to achieve it. I am ready for that. I was talking to an old family friend today at work, and told him about the H&R thing, and he told me he has his own firm here in town, and wants to have coffee and chat! He gave me his business card

I am trusting that God will lead the way, and for all you believers out there, if you could pray for me in this journey, I would appreciate it.

Thanks for all the advice!

You need to distinguish between

a) a degree
b) a professional certification or title
c) the actual job/work someone pays you for

If you know c), work backwards to figure out b) and a). Not all accountants are CPAs, and just because someone is a CPA does not mean you want them doing a tax return for you (EA would be a better certification/license to prove that).

The job you do- you could be an accountant and help with corporate taxes, you could be an accountant which deals with small business taxes, you could be an accountant and only do personal income taxes. There are probably more choices. Financial analysts, auditors and similar. I have a cousin with a business or accounting degree, no license, and he audits companies prior to takeovers. My brother has an accounting degree and he is an auditor for department of defense (also had a MPA which is gov't equivalent of an MBA).

The degree is just a way to enrich yourself. Some fields (like financial planning) require to work in the field before a professional designation is earned. Professional engineers are the same way, and my wife's PHR is the same way.

[MonkeyMama]

I just had to chime in, since I am a CPA.

Historically, a CPA license was had with experience more than education. This is particularly true in California. I have relatives in other states who needed to get a higher education in order to receive a CPA designation. When I got my license a decade ago, all I needed was a Bachelor's degree for a CPA license and top pay (pass the test + experience too, obviously). I think it makes sense when experience is more valued than extra degrees, but hasn't been the way of the profession lately since we are so desparate for people to enter the profession. Experience has gone by the wayside lately.

I would say that if you are interested in financial statements, a CPA route with audit experience is a great way to go. Once you have taken the basic accounting classes (college year 4, perhaps) you should be able to land an audit internship and start getting the experience requirement. Plenty of CPA candidates get this experience but never complete their licensure. There are also other ways to get the same experience - but public accounting gives you wide exposure to lots of different kinds of businesses and their financials. You would learn a ton in a very short amount of time. I have worked for a small and a mid-sized firm. At a mid-sized firm I believe you learn more faster and are thrown more responsibility very quickly. (I worked for Grant Thornton, which is a huge firm actually, just not one of the top 5. Just to clarify my definition of mid-sized). I worked on a couple of public companies, but mostly private. If you want to get into the field of public companies/SEC at all, you have to have experience at a Big audit firm. Even if you don't want to go the CPA route, they generally recruit their outside auditors into their accounting departments. That route was less appealing to me because most the companies are so huge that you only see a small slice of the pie - as an auditor or in their accounting department. Working for a small firm the last decade, I only work on private companies and get more involved in the every day accounting. This doesn't particularly sound like what would interest you. I like it though because I work with many clients and work on a wide variety of accounting functions (payroll, financials, taxes, everything).

Interestingly, there are several VERY small and private businesses who will only hire CPAs with Big 5 (Big 4?) audit experience, for accounting work. I have run across this and it is all about reputation. Someone with experience with public companies has virtually no understanding of how a small private business is run (not from that Big accounting firm experience, anyway). It doesn't make much sense but a CPA license (or even just the Big firm audit experience) can open up a lot of doors that are closed otherwise.

Until you get more education, I think the H&R Block idea is a good idea. Who knows - you may find that you LOVE taxes. If you don't love it and don't want to pursue taxes, it will be a good first step for an accountant's resume, and you will get a general understanding of taxes - which certainly couldn't hurt.

[DebbieL]

Here in Canada it takes several years to earn your accounting designation (we have 3 - CA, CGA, CMA). All 3 have degree requirements and years of experience (with increasing responsibility and certain # of hours required in different areas such as audit) requirements. All require taking several courses through the professional body, and passing a series of professional exams. It is not a short process at all. I'm about 3 years into my road to becoming a CGA, plus I have 11 years of experience in the field. I figure it will be about 5 more years before I earn my CGA designation (I work full-time and go to school at night).

[Scanner]

I think, as one poster noted, you'll find being a CFP or financial advisor a very sales driven culture.

[Mr Nice Guy]

I think, as one poster noted, you'll find being a CFP or financial advisor a very sales driven culture.

Ughhhh. It takes true courage to have a sales driven job, i'm not sure if I have it.