How to become a private wealth manager

Is becoming a private wealth manager right for me?

The first step to choosing a career is to make sure you are actually willing to commit to pursuing the career. You don’t want to waste your time doing something you don’t want to do. If you’re new here, you should read about:

Overview
What do private wealth managers do?

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How to become a Private Wealth Manager

Becoming a private wealth manager typically requires a combination of education, experience, and professional certifications. Here is a snapshot of the pathway to the career:

Bachelor’s Degree
Private wealth managers typically hold a Bachelor's Degree in Finance, Accounting, Economics, or a related field, such as business administration or international business.

Individuals seeking a career in wealth management should choose a program that provides a solid foundation in financial analysis, investment theory, and accounting.

Some private wealth managers may hold a degree in a field such as engineering or mathematics, or computer science, especially if they specialize in quantitative investment analysis.

Work Experience
Aspiring private wealth managers usually need to gain relevant work experience in finance or investment management. This could involve working as a financial analyst, investment advisor, or in a related role such as banking or accounting.

Professional Organizations and Certifications
As the field of finance and portfolio management is constantly evolving, it is important to stay up to date with the latest technologies, industry developments, and best practices. Several industry organizations provide advocacy efforts, access to professional events, continuing education opportunities, and industry research and resources, as well as a network of like-minded professionals working in the field.

Many private wealth managers hold professional certifications offered by these organizations, which demonstrate expertise in financial planning and investment management, as well as a commitment to ongoing education and professional development. While they are voluntary, some companies may stipulate one or more of these certifications, described below, as a condition of employment, particularly in more senior roles.

  • Chartered Wealth Manager (CWM) – The CWM certification is offered by the Global Academy of Finance and Management. The certification program focuses on topics such as portfolio management, estate planning, and tax planning.
  • Certified Private Wealth Advisor (CPWA) – The CPWA certification is offered by the Investment Management Consultants Association. The study program covers topics such as asset protection, legacy planning, and behavioral finance.
  • Certified Financial Planner (CFP) – The CFP certification is offered by the Certified Financial Planner Board of Standards, and requires candidates to have at least three years of professional experience and complete a rigorous course of study in financial planning. The certification program covers a wide range of financial planning topics, including investments, taxes, retirement planning, and estate planning.
  • Chartered Financial Analyst (CFA) – Offered by the CFA Institute, the CFA designation is a globally recognized certification program for investment professionals. It requires passing three levels of exams covering topics such as ethics, investment tools, portfolio management, economics, and financial statement analysis, and requires several years of work experience in investment management.
  • Certified Investment Management Analyst (CIMA) – The CIMA designation is offered by the Investment Management Consultants Association (IMCA). It requires passing an exam covering topics such as asset allocation, risk management, and investment strategies, as well as meeting other requirements such as work experience and education.
  • Chartered Alternative Investment Analyst (CAIA) – The CAIA designation is designed for professionals who specialize in alternative investments such as private equity, hedge funds, and real estate. It requires passing two levels of exams covering topics such as asset allocation, risk management, and alternative investment strategies.

Other bodies supporting the wealth management industry include the Financial Planning Association (FPA), the National Association of Personal Financial Advisors (NAPFA), and the Association for Financial Counseling and Planning Education (AFCPE).

Networking
Networking is particularly important in the field of private wealth management, as many private wealth managers rely on referrals from existing clients to grow their businesses. Building a network of contacts often starts by attending industry events and joining organizations for finance and business professionals.

Advanced Education
While not always required, pursuing an advanced degree such as a Master of Business Administration (MBA) or Master of Finance (MFin) can be helpful when seeking employment as a private wealth manager.