People wishing to enter the financial advising business can
obtain a license before looking for a job. One of those tests is
the Series 65 Exam and the license it gives you is the
Registered Investment Advisor designation.
The exam itself is a 130 question multiple choice test.
Contrary to what some think, there is no educational
pre-requisite to take this test. A finance degree or other
college degree is not required. A degree in finance or otherwise
certainly helps in the job market though. Still, having some
designations going in, and showing your willingness to succeed
in the financial advising business can be enough.
The Series 65 exam centers around the primary investment
vehicles that are out there: Bonds, Stocks, some funds. The risk
associated with these investment types is also covered at great
length. The test also includes analysis topics, such as: Balance
sheet overview, P/E ratio and a few other formulas. Also some
technical analysis areas like: Trading ranges, support and
resistance levels of stocks, and trends.
Suitability and recommendations are key areas on the Series 65
exam as well. That is really what advising is all about when you
think about it. What tax bracket an investor is in and are they
suitable for tax free bonds. Age and income of the person, which
could be used in determining length and credit rating of the
investment or financial plan.
There are also rules and regulations on the exam. Most of these
center around the Investment Advisors Act and Uniform Securities
Act. These areas of the exam are mostly memorization and not
difficult to get down.
The exam preparation time with material provided by American
Investment Training is about 4 weeks or so. Taking the practice
tests and carefully reading the answer explanations is a great
way to "tone up" in the final 2 weeks. Passing grade for the
Series 65 is 68.5%. You can register for the exam using the U-10
form that can be provided with the course. Once you register to
take the exam, you will have 120 days to take the test with that
registration. That is plenty of time to get ready. There is an
exam fee of $110 to take the test.
If a student fails, they must wait 30 days to take the test
again. The Series 65 Exam is given on computer by Prometric
testing centers. There are hundreds of these centers, with
locations in every state and select international locations.
Once you have studied and have registered using the form, you
will receive a confirmation with the 800# to reach any testing
center in the country.
The Series 65 license looks very strong on a resume and is
suitable for many many people. CPA's, Attorneys, Mortgage
Brokers, Stockbrokers and estate planners see the advantage in
obtaining this license. The job market in finance is tough
sometimes, so why not improve your credentials?
Give yourself an edge over other candidates by passing the
Series 65 exam.
Good Luck!
About the author:
Nick Hunter is the President of American Investment Training,
Inc. (AIT) www.aitraining.com. He has
personally taught thousands of students in the securities
industry for over 15 years. AIT produces home study training
courses for the financial industry and to individuals looking
for education and licenses.
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