Online Financial Planning Degree Program Overviews

Financial planners help clients meet both short- and long-term financial goals through need analysis, investment management, tax planning and insurance decisions. Certificate programs for financial planning are the most common program offered online. Although rare, master's degree programs are also available online.

Overview of an Online Certificate in Financial Planning

An online certificate program in financial planning prepares students for the Certified Financial Planner (CFP) certification and provides them with the knowledge needed to begin careers in the field. This type of program includes a comprehensive overview of financial planning and its processes. Students become familiar with specific areas of personal finance, including investment planning, estate planning and risk management. Other topics include regulatory issues, time value of money and economic concepts in financial planning. An online certificate program is usually intended for individuals who hold a bachelor's degree in a related business field, such as business administration, finance or accounting.

Program Information

Earning an online certificate in financial planning requires 9-12 months of coursework. The curriculum is usually composed of 5-6 main courses. In addition to traditional textbook materials, students learn and demonstrate knowledge through asynchronous class lectures, class discussions through online forums, posted assignments and scheduled quizzes. Individuals interested in pursuing this type of certificate should consider programs that are registered with the Certified Financial Planner Board of Standards, Inc. (CFP Board).

List of Common Courses for an Online Financial Planning Certificate

Online courses are usually offered several times a year and are typically offered through the college or university's continuing education or professional development programs.

Investment Planning Course

This online course explores financial markets, portfolio theory and sources of financial information. Students gain an understanding of the design and integration of various investment vehicles in order to meet client needs, objectives and expectations.

Retirement Planning Course

Students are introduced to the key areas of retirement and employee benefits planning, including social security and Medicare benefits. Students become familiar with various types of retirement plans, investment considerations, distribution rules, needs analysis and regulatory considerations.

Income Tax Planning Course

In this online course, students study the many aspects of tax planning as an integral part of meeting an individual's financial goals. Although personal taxation is the main focus, business, partnership and corporate taxation is also covered. Concepts include tax law, tax calculation and basic accounting.

Career Information

The U.S. Bureau of Labor Statistics (BLS) projected that employment opportunities for financial planners would grow at a faster than average rate of 30% between 2008-2018 (www.bls.gov). The BLS also reported that, despite the job growth, competition for employment would remain high, especially for individuals first entering the field; this is due to the relatively low entry requirements and the attractiveness of high wages.
According to the BLS, as of May 2009 the median annual salary for financial advisors was $68,200. Although entering the financial planning industry does not require an educational background in a specific area, a bachelor's degree in finance, economics, business or accounting is commonly preferred by employers. Individuals with a master's degree may find it easier to move into managerial positions at financial planning firms or start their own business serving as an independent representative for multiple firms.

Certification and Licensing Requirements

The Certified Financial Planner (CFP) credential, issued by the CFP Board, can help enhance an individual's career opportunities but is not always required. Education requirements for certification include a minimum of a bachelor's degree and courses in financial planning topics such as those included in an online certificate program. Candidates are also required to have at least three years of financial planning experience, adhere to a code of ethics and pass a comprehensive exam. The CFP credential must be renewed every two years.
Financial planners who provide focused investment advice or directly sell and buy insurance policies, bonds or stocks are often required to hold multiple licenses. In addition to individual licenses, small firms that provide financial management services must register and adhere to state regulations, while larger financial planning companies are regulated by the Securities and Exchange Commission. More information regarding the requirements for registered financial planners and state licensing information is available through the North American Securities Administrators Association (www.nasaa.org).

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Overview of an Online MBA in Financial Planning

Pursuing an MBA in financial planning provides students an opportunity to further develop their research and analytical skills when evaluating financial information, tools and products. Graduates are equipped with an advanced knowledge of financial planning processes that allows them to further help clients achieve financial goals and stability. Online programs cover investment, retirement, insurance, estate and tax planning. This type of online degree program prepares students to sit for the CFP certification examination and pursue advanced careers within the financial planning industry.

Program Information

Available at only a few universities, this online financial planning degree is typically offered in an accelerated format and can be completed within 18-24 months. The curriculum requires students to take a number of general MBA courses, such as managerial accounting, business ethics and statistical analysis, in addition to the financial planning course requirements. Students are expected to complete approximately 42-48 credit hours. The program is conducted through structured online courses that are flexible enough to accommodate the schedules of working professionals.

List of Common Graduate-Level Courses for an Online MBA in Financial Planning

Online course curricula cover a variety of financial planning topics and concepts, including debt management, statistical modeling, employee benefits planning and retirement planning.

Estate Planning Course

Students explore the fundamentals of the estate planning process, including estate and gift taxes, ownership and transfer of property, estate settlement and powers of appointment. Other topics include valuation, probate, trusts and the use of insurance in estate planning.

Risk Management and Insurance Course

This online course introduces students to the various modern methods used to appraise risk and the different tools that can be used to manage that risk. Health, casualty, property, life and liability insurance are presented in detail. Case studies provide practice in selecting the appropriate insurance products for varying individual and family situations.

Tax Management Course

Primarily focusing on tax planning considerations, tax planning strategies and tax computations, this class provides students with basic competencies in tax management and advice. Topics covered include tax compliance, cost recovery, accounting and property.