phd in financial and retirement planning

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Is it worthwhile to get a financial planning phd.

November 17, 2016 07:39 am 17 Comments CATEGORY: Personal/Career Development

Executive Summary

With over 75,000 CFP certificants, having an advanced designation is not the differentiator it once was in the marketplace. Instead, the successful growth of CFP certification, along with rising consumer awareness of the CFP marks, is turning the CFP into a minimum standard to be recognized as a professional, and those who really want to differentiate must pursue even most "post-CFP" certification instead.

In this week’s #OfficeHours with @MichaelKitces, my Tuesday 1PM EST broadcast via Periscope, we explore whether getting a PhD in personal financial planning is a good way to differentiate as an advanced practitioner... or rather, why a financial planning PhD is probably a bad idea for even sophisticated financial advisors.

Because the reality is that a financial planning PhD is really  not  just the ultimate advanced designation in financial planning. It's really a research  degree, with content that teaches students how to actually  do  real research, applying proper research methods and conducting the appropriate statistical analyses. A financial planning PhD doesn't actually teach much at all about how to  do  financial planning; in fact, most of the PhD programs will expect candidates to have already learned that before applying (and/or may have to take "pre-doctoral" courses just to get the requisite education first).

Instead, the real purpose of getting a PhD in financial planning is to teach  financial planning (at a higher education institution), or to do real research in financial planning. The good news is that there are a growing number of opportunities in both - in fact, the whole purpose of the origin $2,000,000 seed grant that the CFP Board made to Texas Tech's personal financial planning PhD program in 2000 was specifically to help create financial planning PhDs who could go create and teach in other financial planning PhD programs (which is exactly what happened). And there is certainly no shortage of applied financial planning research opportunities.

But the bottom line is simply to recognize that practitioners who want "advanced" financial planning designations should seek out post-CFP designation programs, or perhaps a Master's in Financial Planning . But a PhD is not just a more advanced designation; it's really a teaching and research degree, and is best suited for those who really  want  to teach and do research, either in lieu of becoming a financial planning practitioner, or perhaps as a second career for those practitioners who are ready for a fresh new challenge!

Author: Michael Kitces

Michael Kitces is Head of Planning Strategy at Buckingham Strategic Wealth , which provides an evidence-based approach to private wealth management for near- and current retirees, and Buckingham Strategic Partners , a turnkey wealth management services provider supporting thousands of independent financial advisors through the scaling phase of growth.

In addition, he is a co-founder of the XY Planning Network , AdvicePay , fpPathfinder , and New Planner Recruiting , the former Practitioner Editor of the Journal of Financial Planning, the host of the Financial Advisor Success podcast, and the publisher of the popular financial planning industry blog Nerd’s Eye View through his website Kitces.com , dedicated to advancing knowledge in financial planning. In 2010, Michael was recognized with one of the FPA’s “Heart of Financial Planning” awards for his dedication and work in advancing the profession.

(Michael’s Note: The video below was recorded using Periscope, and announced via Twitter. If you want to participate in the next #OfficeHours live, please download the Periscope app on your mobile device , and f oll ow @MichaelKitces on Twitter , so you get the announcement when the broadcast is starting, at/around 1PM EST every Tuesday! You can also submit your question in advance through our Contact page !)

#OfficeHours with @MichaelKitces Video Transcript

Welcome, everyone! Welcome to Office Hours with Michael Kitces!

I want to talk today about advanced financial planning education.

For most of the history of financial planning, educational programs associated with advanced designations like the CFP certification or the ChFC marks  were the highest level of advanced education available. Unlike some fields that offer graduate level advanced education, though, most of these programs were typically taught as adult education certificate programs.

These adult education programs were created to teach the core knowledge (and maybe in the case of CFP marks, to specifically prepare you for the test), but not necessarily to develop 'advanced' practitioners. Most financial planning designation programs are functionally the equivalent of about a half a dozen undergraduate level courses at the most.

In the past 15 years, though,  we've seen the rise of actual college degrees in financial planning . Much of that growth was spawned by a visionary grant from the CFP Board to Texas Tech – which seeded $2 million in 2000 to the personal financial planning PhD program at Texas Tech University, and started the growth of higher education programs for financial planning.

The goal of the grant was to create PhD graduates from Texas Tech, who in turn could go out and create other PhD programs, since most higher education institutions require a professor having a PhD in order to teach in a PhD program.

Financial Planning PhD Programs [Time - 1:38]

Now, 15 years later, the education landscape looks very different. We've reached the point where there are as many degree based undergraduate and graduate programs in financial planning as there are adult education certificate programs!

We've also seen the rise of about a half a dozen Ph.D. programs. These include, the original Texas Tech personal financial planning PhD program itself, as well as PhD programs at the  University of Georgia ,  Kansas State University , and the University of Missouri  – each of which have had some faculty who received their doctorates from Texas Tech. More recently launched programs include Louisiana State University  and the new Ph.D. program at the American College of Financial Services taught by Dr. Wade Pfau , who many of you know from the world of retirement research.

With the growth of all these advanced programs in financial planning, I'm actually hearing more and more practitioners asking the question: is worthwhile to get a Ph.D. in financial planning?

So that's the question I want to tackle today. What's the relevance of a PhD in financial planning for a financial planning practitioner?

What Is A Financial Planning PhD, Really? [Time - 2:37]

To answer the question, first I think it's really crucial to recognize what a PhD actually is. A PhD is a professional research degree. It is not an advanced financial planning designation for practitioners.

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You'll see this distinction if you actually look at the curriculum of a PhD program. You may see some credit hour requirements for mastering the core financial planning body of knowledge, but many programs actually characterize these as pre-doctoral foundational classes – stuff they would've expected you to get in a Master's degree, but if you haven't, then you can do that first.

Within the PhD program itself, you'll often find courses that are heavily research oriented. You'll find courses on research methods, quantitative models, possibly even econometrics – all built around how you actually do research in financial planning.

A PhD program will culminate in a doctoral dissertation where you're going to do a very in-depth research study into something related to financial planning. Some programs will let you do a dissertation composed of three slightly smaller original research studies that you can later submit for journal publication (a "three papers" dissertation, rather than one mega study).

But I can't emphasize enough that the focus of financial planning PhD content is not advanced financial planning like a Master's degree might be. It's about actually doing research in financial planning!

Using A PhD in Financial Planning To Become A Professor [Time - 4:03]

Given these dynamics, what do you do with the financial planning PhD?

As the funding from the original CFP board grant indicates, one of the primary opportunities for getting a Ph.D. in financial planning is to teach personal financial planning, particularly in a higher education institution. And I think it's worth noting this is a really exciting time for the growth of financial planning as an educational discipline, as we grow the number of degree-based programs.

My gut is that in the coming decade we may actually see a shift where the requirements for financial planning education move up and require more college course work in financial planning. We already require a general bachelor's degree to get your CFP marks , but perhaps will require more actual content in financial planning. After all, when you compare financial planning to other more established professions - such as law, accounting, medicine - they all require graduate degrees to really master the content, and then you learn to be a practitioner as you get your experience and actually attain your license!

As financial planning grows and expands its body of knowledge, we may soon get there as well with an important caveat: If we actually require everybody who's getting CFP marks to get college education in financial planning, there are not enough professors to teach them all! Particularly not if we require coursework at the graduate level, which will require more PhDs to build more programs and continue to grow the field.

So for those of you who are practitioners and think a second career as a financial planning educator might be appealing, a PhD can be a very good path for you.

Doing Original Research With A Personal Financial Planning PhD [Time - 5:36]

The second alternative for what to do with a financial planning PhD is to actually do research .

To be honest, I think research in financial planning is woefully inadequate right now. There's so much we advise on that relies on rules of thumb instead of real, validated research. I think we're especially weak about this when it comes to the science of actually delivering financial planning.

You can even see it in our labels. It's common to call the technical stuff the "science" of financial planning, while the delivery is the "art" of financial planning (or the "soft side" of financial planning).

However, there's actually a hard science to the soft side of financial planning as well! If you look at fields like medicine and psychology, there is extensive research in the soft skills that relate to connecting with patients and giving people advice that helps change their behavior. When we look at financial planning, we don't even teach behavior change in most financial planning programs! It's certainly not a material part of the core curriculum.

Imagine all the research that can be done on the softer side of financial planning – not to mention all the stuff on the hard research side as well, such as retirement research, research on how to positively impact spending and saving behaviors, research on how to improve the psychology of insurance so people who actually need coverage would buy it, and research on how our financial literacy grows, develops, and changes over time.

For instance, there's fascinating research out there already on how our financial literacy tends to decline with age, though our confidence in financial literacy does not . We continue to be confident, even though we actually know less. That has all sorts of implications around how we might engage as planners, but you need research to validate and support it. As a financial planning PhD, if you want to go down that road, you can contribute to that research!

If there's one thing you take away from this, it is to recognize that a personal financial planning PhD is not an advanced financial planning practitioner designation – it's a research degree (or at least it's a teaching and research degree). It's something that you get if you want to be a professor that teaches financial planning, or if you want to be affiliated with a university that does financial planning research, or maybe you want to do your own independent financial planning research. It's not meant for simply being an advanced practitioner, and that's an important distinction.

In fact, realistically, if you don't like doing mathematical analyses, building models, working with giant spreadsheets, and learning how to use real number crunching software – recognize that you're probably not going to be very happy in the program. Good PhD programs are generally very quantitatively oriented. So at a minimum, be certain that you go into it with your eyes wide open about what it really entails because the cost is not trivial. A lot of PhD programs will cost you tens of thousands of dollars.

If you just want your CFP education as Eddie just noted [from Periscope], you can get a CFP designation and maybe pursue a Master's degree – most of which are structured as advanced practitioner degrees. But, a PhD is really something different. If your passion is teaching and research, go get a PhD If you're a practitioner that's maybe thinking about a second career and interested in conducting research, you may want to consider a PhD as a second career path. But, if you simply want to get a more advanced knowledge and education as a financial planning practitioner, look to graduate degrees and advanced designations – not a PhD!

So I hope that helps a little as some food for thought. This is Office Hours with Michael Kitces 1:00 p.m. East Coast time every Tuesday. Thanks for hanging out with us and have a great day everyone!

So what do you think? Do you have any interest in getting a Ph.D. in financial planning? Do you think we will continue to see research more heavily influence our industry? Are Master's degrees or advanced designations better options for most practitioners?  Please share your thoughts in the comments below!

November 17, 2016 at 12:21 pm

I appreciate your blog post on this topic, Michael, given that I’m currently a doctoral student at Kansas State’s Personal Financial Planning program. The impetus behind my decision to pursue a Ph.D. was 1) I was seeking a career switch from portfolio management to financial planning; 2) I needed to complete the CFP board education requirements to acquire the CFP designation; 3) I already have a master’s degree (in finance) and wasn’t interested in pursuing a second; 4) I’ve always had aspirations for learning and teaching.

The Ph.D. program, particularly at KSU, can be a fantastic option for existing or aspiring practitioners, who already have an advanced degree, and who seek to earn the CFP mark while expanding their horizons in subjects like financial therapy, applied behavioral finance, and money and relationships – skillsets that can absolutely be utilized from a practitioner’s standpoint. In fact, the hybrid nature of KSU’s program (mostly online with summer residency requirements) makes it perfect for current practitioners to stay working in the field or running their practices while pursuing a doctoral degree.

For the most part, I agree that a Ph.D. is primarily designed for educators and researchers. However, doctoral programs (like anything else in life) can be whatever you make of it. If you seek to use it to teach, then teach. If you want to be a researcher, then use it as a research degree. If you want to stay working in the field, or perhaps switch gears towards working as a financial therapist, the industry is currently working on licensing and credentialing requirements for practitioners looking to go that route.

The opportunities you have with a Ph.D. in financial planning are indeed endless, and I’m so excited to see where my program takes me.

November 18, 2016 at 10:08 am

Thank you for being passionate about Financial Planning. We need folks like you to pioneer new ideas and strategies for the rest of us to copy and utilize for the benefit of our clients 🙂

With that said, the cheaper/quicker/easier route for a college graduate practicing planner to get their CFP will likely be to go through a non-degree program (e.g. certificate programs at American College and College for Financial Planning). As I’m sure you’d agree, a PhD may be overkill for the average reader of this blog.

I was one of the lucky few that knew I wanted to go into planning very early on so my undergraduate degree is in a CFP-approved program. I ended up getting my Master’s degree in personal financial planning from Texas Tech as well, but honestly it was more my ignorant method of delaying entering the job market (I didn’t want to go into the high pressure insurance sales jobs that were plentiful in my area). I don’t regret it since I’ve done fairly well, but I wouldn’t suggest that route for younger colleagues.

My suggestion for other millennials that are on the younger side and are interested in planning would be to take their degree and get nearly any job in financial services/banking. Get first-hand experience with clients and financial products/services. It may not be remotely close to that perfect fee-only pure planning job, but it’ll give you experiences to draw from. Then if you like it, take the steps needed for the CFP. I had a good number of classmates that ended up with a decade of student debt, but aren’t in the industry.

Side note: Kansas State is a great program. I had classmates that did their undergraduate work there and they were top-notch.

November 27, 2016 at 8:59 pm

Millenialing – thanks for your input on K-State. I plan to eventually pursue a PhD, but currently I am getting my Masters while working full time; which I think is the best of both worlds.

On that note, I’m getting my masters at the College for Financial Planning and it is fully accredited by the Higher Learning Commission (i.e. the credits transfer to major institutions). The first half of the program is the CFP classes (minus the capstone) and the second half is core/elective coursework on more advanced topics of financial planning like Social Security, health care, reverse mortgages, portfolio construction, etc. Overall the Master’s program can be completed in two years and is under $15,000.

That said, although the K-State PhD sounds promising, my only hesitation is that it’s not through an AACSB business school – just like Missouri, Georgia, and Texas Tech. When LSU started offering a financial planning PhD through their AACSB accredited business school (in 2014) I was really excited and planned to apply once I completed my Masters. Unfortuntely, however, they terminated the program after a year because they couldn’t get enough interest.

Overall, I’m not saying K-State or the other financial planning PhD programs are bad, but unfortunately academics is often based more on pedigree than actual intellect and skill. With that in mind, the ugly truth is that a PhD from an AACSB business school will lead to a higher salary and more opportunities (both short and long term) than a PhD from a human sciences school; which ultimately means from a personal career perspective you may want to consider a PhD in finance, accounting, or economics instead and later circle back and teach financial planning to undergrads in a business school. However, if you are truly passionate about a PhD in financial planning, then go do it, but realize the limit you’re placing on your personal career. And that’s not to say those limits can’t be broken, but it will be considerably more difficult since your degree is not from a business school.

Hopefully this will change within the next few years and more AACSB business schools will start offering a PhD in financial planning while financial planning programs from non-business schools are terminated, but until then you’ll either have to go the finance/accounting/economics route or follow your passion for a PhD in financial planning but face the uphill battles.

November 28, 2016 at 1:07 pm

DJ, you are correct that KSU’s doctoral program is not AACSB accredited, but the Ph.D. program is not really a “business degree.” It is housed under the department of Family Studies and Human services because the focus of the program is the soft side of financial planning (i.e. financial therapy, money and relationships, applied behavioral finance).

I encourage you to check out the most recent research on Ph.D. financial planning programs. A recent study performed by the CFP Board highlighted that 63 percent of higher education institutions cared less about hiring financial planning Ph.D’s from AACSB-accredited institutions and gave more weight to coursework, experience, and personal characteristics.

http://www.bizedmagazine.com/archives/2016/4/features/preparing-financial-planning-faculty

January 11, 2017 at 10:09 pm

Just to piggy-back on this comment: personal financial planning degrees at K-State, Mizzou, UGA (don’t know about TTU) are converts from what was Consumer Economics. That’s why they are not in the business schools.

Don’t want to get into the optics/politics of non-business school faculty teaching a financial discipline (i.e., financial planning), but for anyone considering a PhD in personal financial planning: look at the numbers in that article very carefully. There’s a big difference between “somewhat likely” and “very likely.” Also, only slightly more than 50% of reporting schools were AACSB-accredited (and not all AACSB schools necessary pay top dollar). Only another 19% were ACBSP accredited (which pay lower than AACSB schools). So about 30% had no business school accreditation (hard to tell what they pay — they could be unaccredited business schools, but they could also be non-business school programs like K-State that actually pay pretty well, although half of what a new finance professor would make at a top 70 business school). What does all that mean? It means that chances of getting a job at a nationally-ranked business school aren’t great with this degree.

That’s not to say it isn’t worthwhile: there are obviously a number of programs that are looking for grads from these programs. (Seems like a few positions open up each year). These are going to be at smaller regional schools (just look at the list of CFP Board registered programs to get an idea). There are some really impressive people and students out at Utah Valley University, for example. But do not undertake one of these PhDs thinking that it is going to open doors to finance departments at ____ State University or its peers where you will be earning a paycheck on par with an Assistant Professor of Finance. (Many salaries at these schools are public information, by the way, so don’t take my word for it — look it up.)

December 22, 2016 at 12:41 pm

Actually, if you take some finance courses in the K-state Ph.D. program, you will be qualified to get a AACSB business school position. But I would actually argue your premise that the salaries are higher. Financial planning professor salaries are creeping up, largely due to the groundbreaking research being done.

January 11, 2017 at 9:32 pm

I am finishing one of the PhD programs listed above, and it does not qualify one to teach at an AACSB school. At many of the (ranked) business schools the CFP program is a certificate program taught by adjuncts that have professional experience and meet minimum education requirements. When hiring a tenure-track Assistant Professor, the nationally-ranked AACSB business schools pretty much hire only candidates with a PhD in Finance from (top ranked) business schools.

There is the AACSB bridge program — but if you look at UF’s site (for example) you will see that placement is not very good, and most folks who do have teaching jobs actually had their academic position before they started the program.

I’ll tell you what I wish I knew a few years ago: if you really want to be a professor and teach at a business school, then get a PhD in Finance from a good program. If you’re really passionate about financial planning research, you can still do that. These financial planning programs hire Econ and Finance PhDs. Finance programs do not hire Financial Planning PhDs.

January 12, 2017 at 6:51 am

Not that I would want to teach anyway (I do a lot of court testimony and a Ph.D. holds up better than a couple of master’s), but I, too am in the K-State program. There is specifically a track at my school for those who would like to teach at AACSB schools. Also, there are a couple of good private school (AACSB-accredited) that are looking specifically to start a financial planning MBA track and are looking for Ph.D. graduates in Financial Planning, one at the school where my wife is a professor.

Once again, not my thing, but I know a few people who have structured their plan of work that way.

Most mid-career financial planners would find the pay cut (even at the associate and full professor salaries) appalling. My wife’s spending habits wouldn’t let me take that pay drop.

November 17, 2016 at 4:49 pm

Masters of Taxation is another option. I am in the program at Golden Gate University. It is kicking my butt. Fairly large law component.

November 19, 2016 at 8:38 pm

Got the masters in 1991. Much much better than CFP but very limited in material in the real world. And since 1995 .almost the entire knowledge base changed with the internet and personal computers. And it keeps happening over and over again almost each and every year. The degree ‘forces’ one to recognize that the demand is everyday and that one has to do additional investigation to keep up. MPT has been shattered, long term care is a mess, et al. Then we have behavioral elements never previously addressed. Now we have the DOL which is clueless, Same with SEC and NAASA.. The designations are severely limited save for the CFA- but that effort is also suspect at times and certainly does not incorporate finanical planning. The MS is now a minimum but how to stay current is a bear. More so if one addresses insurance- which must be done for retirement.

November 21, 2016 at 9:05 am

I completely agree with Michael that the value of the CFP marks has shifted over the years. Our firm has been kicking around the Ph.D. route for the past couple years to improve our “intellectual capital” and differentiate from the CFP a bit. However, I feel the CPWA (certified private wealth advisor) may be more representative of our firm. Does anyone have any insight to the CPWA and if they felt it was worthwhile? Thanks.

November 21, 2016 at 9:50 am

Marc, See https://www.kitces.com/blog/what-comes-after-cfp-certification-finding-your-niche-or-specialization-with-post-cfp-designations/ for some further thoughts on CPWA (and other post-CFP designations). – Michael

November 21, 2016 at 11:34 am

Thanks, Michael. Much appreciated.

November 24, 2016 at 9:18 pm

Are the American College and Kansas State the only online PhD. programs?

November 28, 2016 at 12:25 pm

Fred, yes those are currently the only two financial planning doctoral programs offered asynchronously. Although, keep in mind that American College’s Ph.D. program is not CFP-board approved.

November 29, 2016 at 9:35 am

Thanks. From reading your post and others; I have a lot I need to know about programs before I jump in with both feet.

December 14, 2016 at 5:09 pm

i typically don’t post but with so many credentials in the market i would say it depends on the purpose. if you are interested in the educational knowledge, expertise, and furthering your thirst for knowledge that’s one point. Note: i chuckle when i meet advisors that display many designations on their business cards or letterhead – its a waste – Who are you? Clients don’t know what the alphabet soup means. Are you an expert in all these areas and disciplines? whats your sole focus? Also, we have enough designations out there, don’t need more in the world. Does it help build trust when you see five or six designations on a business card? questionable. The most recognizable credentials in the industry are CPA, CFP, CFA, JD, CLU, ChFC. If you want PHD on your card, go for it – do it for the right reason. I think i have a PhD camera on my iphone – Press Here Dummy. it auto focuses, and one click its a simple picture. Why a PhD is the question i would ask someone – no right – no wrong! keep up the blogs, love them

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PhD - Doctor of Philosophy in Financial and Retirement Planning

Skills / knowledge.

• Quantitative Analysis
• Applied Statistics
• Financial Services
• Retirement Income
• Retirement Planning
• Insurance Products
• Financial Planning
• Applied Multivariate Analysis
• Behavioral Finance
• Public Policy & Retirement
• Regulation of Financial Institutions
• Investments
• Critical Thinking

Personal Financial Planning Doctorate

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Develop the knowledge, skills and tools necessary to achieve success as a university faculty, director of research or practitioner of financial planning.

The personal financial planning doctorate is the first in the nation to be conducted largely online and is one of only three doctoral programs to be registered with the CFP® Board. It is designed for professionals, like you, who already have busy careers and substantial roots where they live.

March 5 Personal Financial Planning Doctorate Webinar Personal financial planning doctorate webinar with Morgan Graham at 7 p.m. (CST) on March 5, 2024.

*This estimate includes online tuition and College of Health and Human Sciences fees and is for illustrative purposes only. Your hours and costs will differ depending on your transfer hours, course choices and your academic progress.  See more  about tuition and financial aid.

New Tuition and Fees Structure for 2021-22 Academic Year To better assist students with understanding the cost of attendance, K-State has simplified the tuition and fees structure for students enrolled in online programs.

Hybrid Format

The personal financial planning doctorate is a hybrid program in which you will take online courses during the fall and spring semesters and participate in intensive 10-day summer experiences. During three consecutive summer residency sessions on the K-State campus in Manhattan, Kansas, you will build connections with faculty, peers and the university.

For the final summer session, you will travel abroad with your classmates to see up-close how global markets work and how they affect financial planning in the United States and worldwide.

Career Prospect Highlights

Graduation Rate

Median salary.

Nationwide Median Salary

Jobs Nationwide

5-Year Nationwide Job Growth

Admission Requirements

All students are required to meet the general university admission requirements.

Additional Requirements

• An undergraduate and graduate GPA of 3.0 (B) or better. In some cases, a 2.75 will be permissible if the last 60 hours of study were at least a 3.0.
• GRE/GMAT scores from within the last five years

Program-Specific Application Deadline

• Summer semester (begins in late May): Dec. 1

Additional Documentation View detailed information about the documentation required to complete your application.

The personal financial planning doctorate will prepare you for a career as a:

• finanical planning professional
• researcher in financial planning
• college or university faculty

If you have not taken a graduate-level statistics course in the recent past, you may be required to take STAT 703 or another introductory research and statistics course prior to your first session on campus.

A maximum of 30 credit hours may be transferred into the doctoral program. If you are interested in teaching in an AASCB-accredited business program, we recommend taking 15 or more credits in finance.

Research Courses (minimum 46 credit hours) Grades of B or better are required for PFP 805, 806, 888, 889, 890 and 906.

• STAT 705 - Regression and Analysis of Variance (3 credits)
• PFP 805 - Statistical Software Application in PFP (3 credits)*
• PFP 806 - Statistical Methods in PFP I (3 credits)*
• PFP 808 - Research Application in Personal Financial Planning (3 credits; must repeat for 6 credits) *
• PFP 888 - Research Methods in Personal Financial Planning I (3 credits) *
• PFP 889 - Theories and Models in PFP (3 credits)*
• PFP 890 - Research Methods in Personal Financial Planning II (3 credits) *
• PFP 906 - Statistical Methods in PFP II (3 credits)*
• PFP 990 - Dissertation Proposal Seminar (1 credit)*
• PFP 999 - Dissertation Research (18 credits)

Professional Courses (minimum 14 credit hours)

• PFP 825 - Survey of PFP Research and Theory (3 credits)*
• PFP 894 - Professional Issues in PFP (1 credit; must repeat for 3 credits)*
• PFP 900 - Research Seminar (1 credit; must repeat for 2 credits)*
• PFP 956 - Clinical Research and Applications in Financial Counseling and Planning (3 credits)*
• PFP 979 - Global Issues in PFP (3 credits)*

Supporting (Core Content) Courses (minimum 18 credit hours) A maximum of 18 transfer hours may be applied for supporting (core content) courses.

• PFP 760 - Retirement Planning for Families (3 credits)
• PFP 762 - Investing for the Family’s Future I (3 credits)
• PFP 764 - Estate Planning for Families (3 credits)
• PFP 766 - Insurance Planning for Families (3 credits)
• PFP 772 - Personal Income Taxation (3 credits)
• PFP 836 - Financial Planning Case Studies (3 credits)

Electives (minimum 12 credit hours) A maximum of 12 transfer hours may be applied for elective courses.

• PFP 768 - Introduction to Financial Therapy (3 credits)
• PFP 769 - Money and Relationships (3 credits)
• PFP 770 - Applied Behavioral Finance (3 credits)
• PFP 771 - Financial Therapy Theory and Research (3 credits)
• PFP 835 - Professional Practices Management in Personal Financial Planning (3 credits)
• PFP 860 - Advanced Retirement Planning Issues (3 credits)
• PFP 864 - Advanced Estate Planning Issues (3 credits)
• PFP 909 - Financial Ethics and Mediation (3 credits)
• Other elective as agreed upon by the committee

*Indicates courses must be taken at K-State unless prior approval is received from committee.

Related Programs

Ph.D. in Financial Planning

UGA’s Ph.D. program in financial planning provides students with the opportunity to focus on research and statistical analysis in the field of Financial Planning to expand your expertise in theory, research methods, analytical thinking, and statistical analysis. Upon completion of this concentration, graduates will be prepared to enter academia or a post-doctoral research position.

What the degree offers students:

• A focused approach to theory and research-based methodology needed to help advance the financial planning profession. 
• The opportunity to explore the financial planning profession in depth from a theoretical and research basis with tenure-track and published UGA faculty.
• A research-intensive experience that prepares students for academic, policy, and business positions.
• Find a variety of  career opportunities .

Time to Completion

Students typically complete the Ph.D. program in 3 to 4 years, depending on the research topic and student background. 

Admission Requirements

In order to be admitted into the UGA professional master's program in financial planning, you must first be admitted by the University of Georgia Graduate school. See how to  apply to the graduate school here . 

Certifications & Opportunities  

UGA’s Financial Planning Program is registered with the  Certified Financial Planner Board of Standards, Inc ., and the  Association of Financial Counseling and Planning Education . Graduates are eligible to sit for the Certified Financial Planner (CFP®), the Accredited Financial Counselor (AFC®), and the Certified Retirement Counselor (CRC®) examinations upon completion of the program. The Behavioral Financial Planning/Financial Therapy option allows students to sit for the Certified Financial Therapist-I™ (CFT-I) examination.

While in the program, students can have the opportunity to participate in a variety of experiential learning research including the  ASPIRE Clinic  and  Volunteer Income Tax Assistance (VITA) .  

Degree Requirements

The button below will provide the Financial Planning course sequencing required for the Ph.D. program. Please contact Melissa McBride at 706-542-4856 or  [email protected] with any questions. 

Ph.D. Financial Planning Degree Requirements

Key Faculty

John Grable

Athletic Association Endowed Professor of Family and Consumer Sciences

  [email protected]

Lance Palmer

  [email protected]

Swarn Chatterjee

Department Head and Bluerock Professor of Financial Planning

  [email protected]

  706-542-4877

Kristy Archuleta

  [email protected]

Joan Koonce

Professor & Extension Financial Planning Specialist

  [email protected]

  706-542-4865

Joseph Goetz

  [email protected]

Assistant Professor

  [email protected]

Effie Antonoudi

Assistant Professor and Undergraduate Coordinator

  [email protected]

  770-229-3322

Travis Mountain

Assistant Professor of Extension in Financial Planning

  [email protected]

James Pasztor

  [email protected]

  303-990-3883

Michael Thomas

  [email protected]

Kimberly Watkins

  [email protected]

Melissa McBride

• Technology Services
• Website Support
• Faculty and Staff Resources
• FACS Openings
• Extension Agent Openings

Address/Map

Dawson Hall 305 Sanford Dr Athens, GA 30602

SSAC 706-542-4847

Administration, Alumni, Communications 706-542-6402

2024 Best Online PhD in Financial Planning [Doctorate Guide]

If you’re interested in pursuing research or advancement in the field of finance, then earning a PhD in Financial Planning may be a strategic step in your professional goals.

A PhD is a research-heavy program, and you will likely have the opportunity to study theoretical knowledge and research methods in specific fields, such as consumer economics or risk management.

Editorial Listing ShortCode:

Earning this degree could help you grow your qualifications for several rewarding and lucrative career paths, depending on your desired area of focus.

Universities Offering Online Doctorate in Financial Planning Degree Programs

Methodology: The following school list is in alphabetical order. To be included, a college or university must be regionally accredited and offer degree programs online or in a hybrid format.

Capella University

Capella University’s Doctor of Philosophy in Business Management includes eleven core courses, five electives, and three virtual residencies. The program also requires the completion of a comprehensive exam and a dissertation to graduate. Throughout the dissertation process, students are paired with an academic mentor to help keep them on track.

Capella University is accredited by the Higher Learning Commission.

Franklin University

Franklin University offers a Doctor of Business Administration that can be completed 100% online. Students typically spend 2 years completing coursework and 1 year working on the dissertation. The program is designed to allow students to complete their studies around their own schedule. The curriculum is highly customizable through a wide range of elective options.

Franklin University is accredited by the Higher Learning Commission.

Hampton University

Hampton University offers a hybrid online PhD in Business Administration designed to meet the needs of busy professionals. Online courses are 8 weeks long. Students are required to come to campus for two 4 week summer residencies and to defend their dissertations. Potential courses in the curriculum include Organizational Behavior, Advanced Computer Applications, and Managerial Economics.

Hampton University is accredited by the Southern Association of Colleges and Schools Commission on Colleges.

Jacksonville University

Jacksonville University offers a Doctor of Business Administration. The curriculum is designed to offer networking opportunities and develop critical thinking and problem-solving skills. Classes meet on campus one Friday and one Saturday each month, but the option to stream the class live online is available.

Jacksonville University is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools.

Kansas State University

Kansas State University offers a Doctorate in Personal Financial Planning that is intended for working professionals. This hybrid program consists of online courses during the fall and spring semesters, supplemented by intensives on campus that are 10 days long during the summer. The program also requires a travel abroad experience to learn about global markets.

Kansas State University is accredited by the Higher Learning Commission.

Liberty University

Liberty University’s Doctor of Business Administration requires the completion of 60 credit hours and takes an average of 3 years to complete. Courses are offered 100% online and are 8 weeks long. The program’s instructors have real-world business experience. Potential courses in the curriculum include Investments and Derivatives, Mergers and Acquisition, and Business Valuation.

Liberty University is accredited by the Southern Association of Colleges and Schools Commission on Colleges.

National University

National University offers a PhD in Business Management with a specialization in Financial Management. The program’s fully online format is designed to allow students to complete their studies in their own time. New students can start every Monday. Potential courses include Business Leadership and Strategy, Business Financial Systems, and Statistics I and II.

National University is accredited by the WASC Senior College and University Commission.

Pace University

Pace University offers a hybrid program for a Doctor of Professional Studies in Finance. Students can typically complete it in 3 to 5 years without interrupting their current careers. Most coursework is completed with a cohort. Graduates typically pursue academic careers or senior management positions.

Pace University is accredited by the Middle States Commission on Higher Education.

Texas Tech University

Texas Tech University offers a PhD in Personal Financial Planning that can be earned on campus or online. The curriculum is designed to develop practical skills in both research and teaching. Graduates often pursue tenure-track faculty positions at other universities or non-academic careers in business.

Texas Tech University is accredited by the Southern Association of Colleges and Schools Commission on Colleges.

Touro University Worldwide

Touro University Worldwide offers a Doctor of Business Administration. Courses are 8 weeks long and 100% online. The program requires the completion of a research-based doctoral project on a topic such as finance, accounting, or technology. There are six start dates every year, and prospective students can apply without GRE scores at any time.

Touro University is accredited by the Middle States Commission on Higher Education.

Trident University International

Trident University International offers a PhD in Business Administration that can be completed 100% online. The program has no in-person requirements, and the course load and completion time may be adjusted to suit personal schedules. Faculty members are assigned to provide individualized support on the program’s required research project.

Trident University International is accredited by the Higher Learning Commission.

University of the Cumberlands

The University of the Cumberlands offers an online PhD in Business with a content specialty area in Finance. Potential courses include Corporate Finance: Fiscal Management in a Global Climate, Managerial Ethics and Social Responsibility, and Strategic Marketing: Research and Practice.

The University of the Cumberlands is accredited by the Southern Association of Colleges and Schools Commission on Colleges.

Walden University

Walden University offers a PhD in Management with a specialization in 21st Century Finance. The curriculum covers how to conduct original research, make strategic business decisions, and apply financial theory to real-world situations. In addition to coursework, the completion of a dissertation and attendance at four residencies are required.

Walden is accredited by the Higher Learning Commission.

Online PhD in Financial Planning Programs

PhD programs in financial planning are typically designed to prepare graduates to become members of university faculty or pursue research positions.

As such, this degree program contains a large amount of research coursework, like advanced research methods, theories and models in personal finance, and more.

You can also study:

• Statistical methods in financial planning
• Global issues in financial planning
• Clinical research and applications
• Financial planning theory

A large portion of a doctorate in financial planning program can also be devoted to financial decision-making, including risk management, retirement planning, and investments. You may also encounter coursework that focuses on best practices during economic decline, including preventative techniques.

You can explore how to analyze and evaluate financial public policy and even how to recommend courses of action for individuals based on policy. Since research is a core component of this degree, some of your courses will include the study of data analysis and interpretation techniques, regression analysis, and econometrics.

Most curriculums include leadership and ethics coursework as well. Dissertation preparation can also include coursework on writing academic and research papers as well as the skills required to publish in scholarly journals. This PhD seeks to prepare students to become faculty members and teachers at research-based universities, but it can also help prepare professionals for senior or leadership roles in the finance industry.

Financial Planning Careers & Salaries

Earning a doctorate in financial planning online may open up several career opportunities. Typically, graduates of this PhD program move into postsecondary teaching or research positions. PhDs are a common requirement for careers in research and academia.

Some graduates choose to become a professor of finance, economics, or financial planning at a university, where they can also conduct research and publish in scholarly journals. Others choose to conduct research for large financial advising corporations, as these institutions sometimes have in-house research and training departments.

Potential roles for advanced professionals in the field include principal investment strategist, financial planning scientist, and economist.

According to the Bureau of Labor Statistics , here are the median annual salaries of positions related to the advanced study of financial planning.

Salaries can vary depending on your level of experience and education as well as the institution you’re working for. In addition to academic careers, graduates can also choose to pursue consumer-facing roles. These types of roles can include personal financial advisor and financial manager.

Financial planning professionals may advise individuals on risk assessment, investment strategies, estate planning, economic decline mitigation, family wealth, and more. Others choose to become involved in risk management for corporations or even focus on stocks and bonds.

Financial Planning PhD Curriculum & Courses

While courses in financial planning doctorate programs can vary, here are some common subjects you may come across in a financial planning PhD program:

• Research Methods in Financial Planning, Housing, and Consumer Economics : This course emphasizes research design, with a focus on common issues in data analysis and measurement.
• Theory of Households, Consumer Economics, and Financial Behavior : This course overviews contemporary theories of household and consumer decision-making, including theories of saving and consumption and economic analysis.
• Research Development : This course focuses on the development of a dissertation proposal and the necessary research skills required to do so, such as viable question identification and structuring empirical research papers.
• Advanced Wealth Management : This course focuses on family wealth management and covers areas such as investment risk and return, securities markets, mutual funds, stocks, bonds, and more.
• Statistical Software Application in FP : This course overviews current statistical software in financial planning, along with its application in practical and research capacities.
• Consumer Policy Analysis : This course analyzes the rationales and outcomes of financial policies that impact consumer well-being, housing, financial services, and other markets.
• Statistical Methods in Financial Planning : This course focuses on the use of statistical methods and application in financial planning research.
• Money and Relationships : This course explores the connection between couple and family relationships and money, with a focus on factors that impact money perceptions and management.
• Advanced Estate Planning : This course explores advanced methods of family estate planning, including multi-generational techniques, property transfer, and trust income taxes.
• Fundamentals of Risk Management: This course focuses on the fundamentals of risk management, specifically the use of insurance in risk financing.

A PhD program will often require more research-focused core courses.

How to Choose an Online Doctoral Program in Financial Planning

When choosing between online doctoral programs in financial planning, there are several considerations to keep in mind. These include:

• Accreditation . Accreditation offers quality assurance that a school meets certain professional standards. You can also look one step deeper and find finance programs that are affiliated with the Certified Financial Planner (CFP) board.
• Curriculum . Many PhD candidates have the opportunity to shape their curriculum to a degree. So, it’s strategic to look for programs with coursework that reflects your desired area of expertise, such as econometrics, regression analysis, research theory, and more.
• Instructors . You will work more closely with your PhD professors than any other instructors, especially in a research capacity. So, it is beneficial to see if a program’s instructors have top-tier research and experience credentials.
• Technologies for online learning . It’s strategic to confirm that whether an online program utilizes technologies and platforms that make it convenient to attend class virtually.
• Access to resources . You might consider whether a program can offer access to resources like scholarly journals or personalized library assistance.
• Job placement . You can inquire about schools’ placement programs for graduates, and you can also speak with alumni regarding their career process after graduation.

Keeping these considerations in mind when choosing a program may help you find the program that best supports your future career.

Admissions Requirements

While admissions requirements for doctorate in finance programs can differ depending on your school, some common ones include:

• Official transcripts and master’s degree
• Resume or CV
• Statement of purpose
• Interview with faculty (if applicable)
• Letters of recommendation

A growing number of schools no longer require the submission of GMAT or GRE scores for graduate admissions, but some still do. Also, some programs require professional experience. It’s beneficial to verify the specific admissions requirements of prospective schools before applying.

Accreditation

Determining whether your potential university is accredited is an essential step to take before applying. In essence, regional accreditation is a form of quality assurance that assures your university meets professional education standards.

Completing your PhD at an accredited school is often a requirement by different employers and certification boards. Plus, some forms of financial aid are only available at accredited schools. Only select organizations can provide regional accreditation.

You can view a list of credible organizations and verify a school’s accreditation status at the Council for Higher Education Accreditation ’s website.

Financial Planning Licensure and Certifications

Earning a professional certification alongside your degree could be a strategic way to showcase your expertise to employers or clients and enhance your career opportunities.

A few certification options include:

• Certified Financial Planner (CFP) : This certification verifies your expertise in assessing financial portfolios and making personalized recommendations.
• Chartered Financial Consultant (ChFC) : This certification is similar to the CFP, but it allows specialization in niche areas, such as estate planning.
• Financial Risk Manager (FRM) : This certification verifies expertise and experience in risk management, and it is available from the Global Association of Risk Professionals (GARP).

Some doctoral programs are designed to help you meet certain certification requirements.

Financial Aid and Scholarships

Many students pursue financial assistance to complete an online PhD in Finance. There are many types of aid available to qualifying students, including federal aid, state aid, grants, scholarships, and more.

Scholarships and grants can be based on a variety of factors, such as location, need, and area of study. They can also be offered by a variety of sources, such as schools, professional organizations, and public institutions. If you do need the assistance of loans, student loans from the federal and state governments often come with lower interest rates.

To apply for federal aid and determine your eligibility, you can fill out the Free Application for Federal Student Aid (FAFSA) .

What Is a Financial Planning PhD Degree?

A PhD in Financial Planning degree is designed to prepare graduates for top-level careers as professors, academic researchers, chief financial officers, and even economists.

In this degree program, you can study advanced research methods—such as statistical methods and data analytics—in preparation for academic research. You can also study core topics like financial planning, economic theory, risk management, econometrics, and investment techniques.

Many graduates of this type of PhD program become faculty members at universities or even researchers for private financial firms.

What Do You Learn in an Online PhD in Financial Management?

Students in a PhD in Financial Planning degree program are immersed in all types of advanced financial planning topics. PhD programs will also heavily focus on research methods. Coursework in research may include research methodology, data analysis and interpretation, financial planning models, and statistical methods.

Other courses will cover fundamentals in risk management, financial policy analysis, regression analysis, estate planning, research development, and consumer economics. Students may even take courses on software used in financial planning as well as leadership and ethics courses.

What Can You Do with a PhD in Financial Planning?

A PhD in Financial Planning can help qualify graduates to become researchers or members of university faculty. Many graduates go on to become professors in finance or financial planning, where they may also conduct original research and publish research papers.

Others become economists, principal investment strategists, or financial planning scientists for private corporations. Graduates may also find careers as financial managers, analysts, or advisors for public or private companies. Those with extensive experience may go on to become chief financial officers.

Can I Get a PhD in Financial Planning Online?

Many accredited schools offer PhD in Financial Planning programs online. These schools typically offer virtual learning options, where you can attend virtual classes and submit coursework remotely.

Before choosing a school, it’s helpful to verify whether you’ll need to attend in-person at any time. Some programs are listed as “hybrid,” meaning some classwork is in person. Most PhD programs do require in-person attendance for dissertation proposals and defense. There may also be some in-person requirements for seminar courses.

What Jobs Can I Get with a PhD in Financial Planning Degree?

Professionals with a PhD in Financial Planning may pursue a variety of career opportunities post-graduation.

Many graduates choose to enter the world of academia. They might become faculty members or professors at colleges or universities, where they can teach finance or a related subject. They may also pursue research positions at postsecondary institutions or private companies.

Financial planning professionals who use their studies to advance in the field may work as financial managers, economists, or even chief financial officers, depending on their qualifications and experience.

How Long Does It Take to Get a PhD in Personal Financial Planning Online?

Generally, a PhD can take anywhere from 3 to 5 years to complete with full-time enrollment. This timeline can depend on the number of credit hours required and how long it takes to complete your dissertation.

If no dissertation is required, a doctoral program can often be completed in 3 years with full-time study. Of course, if you are enrolled part-time at any time, this may extend your time to completion. You can talk to a university about their specific program timelines to learn more.

Is a PhD in Financial Planning Worth It?

Yes, a PhD in Financial Planning is worth it for many students. Earning this terminal degree can help you stand out to potential employers as well as qualify for positions in research and academia.

According to the Bureau of Labor Statistics, the employment of financial managers is forecast to grow 17% over the next ten years, which is considered much faster than the average. Similarly, 12% job growth is projected for postsecondary teachers over the same period.

Getting Your PhD in Financial Planning Online

You might consider earning a PhD in Financial Planning if you want to grow your professional qualifications or pursue original research in the financial planning field.

A PhD can also help you qualify for faculty positions at universities or research positions at postsecondary schools or private companies. Some graduates go on to publish research findings in scholarly journals while they maintain more client-facing roles, such as that of a financial manager or advisor.

You could start exploring accredited colleges and universities today to see which online PhD programs in financial planning best match your interests and goals.

Financial Planning PhD Guide: Job and Salary Expectations with a Doctorate in Financial Planning

A doctor of philosophy degree, or PhD, represents the pinnacle of education attainment in any field of study. Financial planning is no exception, but you won’t find many top-tier financial planners with a plaque on the wall touting a PhD, or insisting that you address them as “Doctor” at the bar after a hard day at the office.

That’s because, unlike other types of degrees and certificates in financial planning, which prepare you for investment and client-facing engagements, a PhD is really aimed at academic pursuits, preparing you for a university professorship in teaching or research.

What Kind of Jobs Can You Find with a PhD in Financial Planning?

Salaries for phds in financial planning, considering your options among cfp-board registered programs, what kind of curriculum to look for in financial planning phd programs, the importance of instructors and connections in financial planning doctoral programs.

Outside the halls of academia, it could even prepare you for a job as an egghead in the back room cooking up advanced investment and savings strategies at a big-time advising firm like Edward Jones and BlackRock, or management firms like Morningstar Investments.

If that’s the kind of rarified air you want to breathe, then a doctorate in financial planning is what you’re after.

These are not the kind of nose-to-the-grindstone positions you’ll find on the customer-facing side of investment and financial advising. Instead, you’ll be operating in the high-tone world of academia, conducting research, teaching, or writing papers on finance management.

Diving deep into public and private data, you’ll take on topics like consumer and investment pricing, analyze corporate 10-K forms for underlying trends, and absorb highly technical details of tax law to find savings and trust strategies that could eventually be used by millions.

For the most part, these jobs are found at universities, but the big financial advising shops also maintain in-house research and training departments where you can keep your fingers on the pulse of real-world planning. Positions like Principal Investment Strategist, Executive Director, or Financial Planning Scientist can all make good use of a doctoral-level education in financial planning. Opportunities in applied financial planning research can also be found at think tanks like the Finance Foundation or the Levy Institute, the behind-the-scenes deep-thinkers in economics and finance who develop and disseminate key concepts in the field.

Academic salaries in finance are surprisingly robust. Many business school professors can bring in mid-six-figure salaries in tenured positions at top schools. Even assistant professors sometimes make over $200,000. Competition for such positions is understandably fierce.

According to the U.S. Bureau of Labor Statistics, here are some roles that someone with a doctorate in financial planning can do:

Personal Financial Advisors:

• Bottom 10%: $42,950
• Median salary: $87,850
• Top 10%: $208,000

Management Analyst:

• Bottom 10%: $49,700
• Median salary: $85,260
• Top 10%: $154,310

Top Executives:

• Bottom 10%: $62,290
• Median salary: $184,460

For starters, you don’t have a lot of choices. The first financial planning doctorate was established in 2000, at Texas Technical University. The CFP Board , the non-profit organization that manages the industry-standard Certified Financial Planner credential, only lists four such programs on their list of Registered Programs.

You can cast your net a little wider, though; CFP Registered Programs must include a set of coursework that qualifies graduates for the CFP, and that’s not a focus for most doctoral candidates. At that stage of your career, you are either already certified, or you are on your way to a job where no one will care about it anyway.

Still, a CFP Board affiliation tells you that those schools are highly respected within the financial planning community and reflect the highest and most professional standards of academic excellence in the industry.

You can also find specializations in more traditional finance and business administration programs tailored to financial planning (some of which may also be CFP Board-registered). With the traditional flexibility of PhD candidates to create their own learning program and research subjects, it can be easy to take such degrees in a direction that is very specific to financial planning topics.

In some fields, it’s also important to look for specialty accreditation—a similar, but more in-depth endorsement from an accrediting body that has additional interest and expertise in that field. In business and accounting, there are three CHEA-recognized specialty accreditors:

• Accreditation Council for Business Schools and Programs (ACBSP)
• International Assembly for Collegiate Business Education (IACBE)
• Association to Advance Collegiate Schools of Business (AACSB)

Although none of those bodies offer specialty programmatic accreditation for financial planning programs, AACSB does accredit schools as well as programs. It may be worth considering an AACSB-accredited school for your PhD in financial planning; in other cases, looking for IACBE or ACBSP programs within the same department can offer an indication of the general standards of academic quality, since many administrative and instructional standards and personnel will be common to all the programs.

PhD candidates often have the privilege of shaping their own curriculum to a high degree. In CFP Board registered programs, you will have to cover the mandatory nine subject areas required for the CFP credential:

• Professional Conduct and Regulation
• General Principles of Financial Planning
• Education Planning
• Risk Management and Insurance Planning
• Tax Planning
• Retirement Savings and Income Planning
• Estate Planning
• Financial Plan Development (capstone course)

But you’ll also find advanced courses in research theory and regression analysis, econometrics, politics and policy, data analysis and interpretation, and economic theory that will help you understand not just the practical aspects of financial planning, but to grasp the theoretical underpinnings of the field.

If you want to be the best, you need to learn from the best. You work more closely with your professors in PhD programs than in any other type of academic pursuit, frequently collaborating closely on research and other projects. You need to make sure that the people you are studying under, and with, have not only top-flight academic and research credentials, but also the practical experience to back them up with real-world applications.

Looking for schools whose professors are regularly published in the Journal of Financial Planning and other industry publications is a good start, as well as seeking out those who are frequently presenters at conferences put on by the Center for Financial Planning and similar think-tanks.

Although earning your PhD can be time-consuming and take you well away from the practical world of day-to-day financial planning, you’ll find yourself among the top minds in the field if you choose to pursue it.

(Salary data for  Management Analysts ,  Personal Financial Advisors  and  Top Executives  reported by the U.S. Bureau of Labor Statistics in May 2019. Figures represent state data, not school-specific information. Conditions in your area may vary. Information accessed March 2021.)

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Legacy Programs

The College continues to support credentials conferred for programs that were sunset due to shifts in industry and societal demands.

Our Support for Legacy Credentials

We introduced our first program nearly 100 years ago. In that time, the financial services profession has evolved significantly. To meet our students’ needs, we have occasionally sunset some degree and designation programs. While these legacy programs are no longer offered to new students, we support those who earned a legacy credential from The College or have ensured a new issuing organization provides support.

The Chartered Advisor in Senior Living® (CASL®) designation advocated for aging clients to achieve financial security now and into the future. CASL® advisors lead clients from middle age through retirement, helping them manage, preserve, and transfer wealth.

The Chartered Healthcare Consultant® (ChHC®) designation informs financial advisors on changes to our health care system after the Affordable Care Act was passed in 2010. The College ceded this designation to the National Association of Health Underwriters (NAHU), which issues and currently supports the ChHC®.

The Financial Services Specialist (FSS®) designation provided financial advisors with the core knowledge and skills necessary for essential planning and advisory assistance for consumers and businesses. Sunset in December 2013, education comparable to the FSS® program is available through the Financial Services Certified Professional® (FSCP®) designation program.

PhD in Financial and Retirement Planning

The part-time PhD in Financial and Retirement Planning began in July 2013 and was phased out in April 2018. Before the program ended, The College awarded doctoral degrees, and PhD students produced original academic research that contributes to the body of knowledge in the financial services profession. The College maintains academic support for students who were pursuing the degree at the time it was sunset.

The Registered Employee Benefits Consultant® (REBC®) designation includes practical knowledge on pensions and retirement plan funding, installation, and administration. The program covers group medical plans, long-term care, executive compensation, personnel management, and more. The College ceded this designation to the National Association of Health Underwriters (NAHU), which issues and supports the REBC® designation today.

The Registered Health Underwriter® (RHU®) designation provided a specialization in living benefits, including income replacement and risk management solutions for individuals, business owners, and professionals. We continue to support an RHU® credential earned from The College.

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Personal Finance for PhDs

Live a financially balanced life - no Real Job required

How to Successfully Plan for Retirement Before and After Obtaining Your PhD

April 8, 2019 by Jewel Lipps

In this episode, Emily interviews Dr. Brandon Renfro, a finance professor and financial advisor. Brandon shares the tortuous path that led him to his current faculty position at East Texas Baptist University and side business in retirement advising. They discuss the long-term financial effects of doing a PhD – both positive and negative – and how to have a successful retirement even if you can’t save (much) during your PhD training.

Links mentioned in episode

• Tax Center for PhDs-in-Training
• Volunteer as a Guest for the Podcast 
• Brandon Renfro, PhD, Retirement Planning and Wealth Management

0:00 Introduction

1:05 please introduce yourself.

Dr. Brandon Renfro has a PhD in Finance. He is both an academic and a practitioner. He advises retirement advising for individuals. He does financial planning while being a tenure track professor.

2:02 What was your career trajectory?

Brandon says that he “walked backwards” or stumbled into his PhD. As an undergraduate, he planned to go to law school. He was advised to major in business in preparation for law school. He took an American enterprise course and saw a presentation about the time value of money in the retirement planning context. This presentation inspired him, so he majored in finance and loved it. He went to law school but says he crashed and burned. He was in the military and had GI bill benefits. He decided to use his GI bill benefits for an Master of Business Administration (MBA). He asked his MBA advisor about adjunct teaching. He had to have 18 graduate hours in the discipline to teach a course. He discovered he loved teaching. He decided he wanted to teach full time. He feels fortunate that he got a tenure track position at a liberal arts college in Louisiana, where he worked for three semesters. Now he is in his third semester at East Texas Baptist.

Emily points out that Brandon tried stuff and saw what stuck. Brandon agrees that this is important to explain to students today. He says many students set a goal and stick to it no matter what, even if the path isn’t right for them. He says there is a time when you should recognize if you don’t love what you’re doing and you should try something different. Brandon says he would tell his 18 year old self to major in finance, but at the time it didn’t occur to him.

Emily asks how Brandon handled the sunk costs of going to law school. Brandon clarifies that he didn’t meet the GPA requirements to continue law school but he wasn’t sad about it. He says he was miserable in law school. He had taken out loans to pay for the year in law school. He says it was $20,000 that he spent to learn that he didn’t want to be an attorney. He says if he looks at it like it’s money he spent to learn that he loves being a finance professor, it was worth it.

7:47 Given that a person has decided to do a PhD and maybe a postdoc, what are the effects of their financial outlook?

Emily starts by explaining that graduate students, postdocs, and early career PhDs have a lot of anxiety around saving for retirement. Most of these people are in their 20s or 30s and they know they are supposed to be investing for retirement. But planning for retirement feels overwhelming in the context of their competing financial demands, like student loan payments or saving for a house down payment, coupled with their suppressed income for an extended period of time.

Brandon says that if you put off starting a career to do a PhD, this will make saving and preparing for retirement a little more challenging. These are foregone years of savings. However, academics have the ability to work past typical retirement age. As a professor, you can work longer and save money for retirement for more years, even if you start work and start saving a little later in life. Emily clarifies that PhDs can add years on the back end, instead of on the front end, to the total years that they can work to save for retirement. PhDs can do this because their work is fairly intellectual, and hopefully they get better with time. It’s less daunting to add years at the end in these career paths than others. Brandon says it’s (physically) easier to talk about what you know than it is to work on a factory floor, and you can prolong the years you do this kind of work. Even as PhDs reach retirement age, they have options to be an instructor, lecturer, adjunct, or consultant. You can work less than a full time load, and still capitalize on your years of experience.

Brandon says even while you’re working in your 30s or 40s, you have the ability to leverage expertise outside the classroom. Even if you are working a full time tenure track position, you have a lot of knowledge that you can leverage in industry, even while you’re teaching. Emily shares that when she was an engineering PhD student at Duke University, she saw plenty of professors had consulting businesses or wrote books. In academia, there are many ways to step outside your primary role and leverage your expertise. Emily says that there are plenty of opportunities to have side hustles all through your career. She is part of a community of self employed PhDs, and many people’s self employed job is on the side of their full time job. Brandon believes there is a lot of potential for academics to be self employed. He says even if you were the lowest ranked student in the lowest ranked PhD program, you still have knowledge and you are already part of a select group. Emily says any PhD can find a market where their skills are valuable. They give examples of formatting and copy-editing and tutoring.

17:13 How can someone handle the income jump after the suppressed income period of being a trainee in a PhD or postdoc?

Brandon says in one phrase, avoid “lifestyle creep.” When you suddenly go from an undergraduate or PhD student lifestyle based on lower income to receiving a full time income, you need to be mindful to not immediately start living at the new income. He says you don’t need to be extremely frugal, but use a moderate amount of your new income to build your emergency savings, pay down consumer debt, and pay down student loans in order to be much better off in the long run.

Emily shares the standard personal finance advice to commit a large percentage of your raise to your financial goals. Either all of the raise or as much of the raise as you can, put it towards goals instead of your consumption spending. She says it applies even more when you have a large income jump. Most of it should be used to accelerate financial goals. When Emily and her husband finished their PhD programs, they applied this concept to their new “real jobs” income. They had several financial goals that they focused on and avoided lifestyle creep.

Brandon shares his story about buying a house. He was unsure where he would get his tenure track position, but he wanted to build equity without committing his family to a large mortgage payment. He bought a small rent house before they bought a house to live in. Emily brings up that some people rent their properties as they move, in contrast to how Brandon purchased the property purely as a rental property.

23:40 Grad students and some postdocs don’t pay into the social security system. What are the long term effects of missing out on these years of contributions?

Brandon explains that social security benefits are based on 35 years of covered earnings. Essentially, it’s an average of your highest 35 years of earnings. If you’re starting to contribute later, do the math. If you’re in your early 30s, you may be in your late 60s before you have 35 years of covered earnings. The issue is that your benefit will be calculated with some zeros in the 35 year average, which skews down your average. When you’re on the back end of your career, this may influence your decision to work for a few more years to replace some of the years where you contributed zero dollars to social security.

26:59 What steps can someone who’s in or recently been in PhD training do to mitigate negative effects of lower income and not contributing to retirement?

Brandon brings up the psychological benefit of being used to living on a small income. He says to continue to live like that for a couple of years so that you can build yourself a financial cushion and start saving for retirement. He says eventually the feeling goes away and you get used to the new level of income. Psychologically, it’s harder to start saving for financial goals later.

Emily says that this is classic personal finance advice. Sometimes the lifestyles of PhD students are lower than those of college students. She says it’s difficult to deflate lifestyle. You might see the higher paycheck from your first real job, then you lock yourself into higher housing costs or buy a new car. It’s difficult to take a step back, but it’s much easier to keep a similar lifestyle and put the new income to your financial goals and slowly work up your lifestyle.

30:16 If a person starts saving during graduate school, what kind of effect can that have on retirement?

Brandon explains the first presentation that he saw on the effect of compound interest. If you started when you were 18 years old and you saved just $2,000 per year in a retirement account, you would have a million dollars for retirement if you simply earned the average market return. He says the same is still true if you start at 30 or 32, but there are a few less years for compounding to take effect.

Emily says that even during graduate school, saving a couple hundred dollars a month is accessible. It’s not a thousand dollars every month that you need to save. The earlier you take these steps, the more and more impact it can make. It really does make a difference to take these steps earlier.

Brandon adds that at least, don’t make negative steps. Buying a cheaper car or cheaper clothes can go a long way. Emily says that the professional students, like law students, were living a higher lifestyle even though they were living on loans. She says the smallest amount of debt that you have to take on during training will make it easier for you in a few years.

35:50 What do you do for clients?

Brandon can help with anything within realm of retirement planning. He can help someone starting out. He can help graduate students and postdocs sort through their different options for retirement plans. He can help with decisions about how to invest within retirement plans. Brandon encourages you to take retirement very seriously and to think very hard about putting off retirement. He says it’s really hard to make a strong case against contributing to a plan with an employer match. He says employer match is essentially free money. Emily says an employer match is a 50% or 100% return on investment.

Emily clarifies that someone looking at different options can ask Brandon for help considering which option to prioritize. Brandon can help overcome “analysis paralysis.” Brandon says something is almost always better than nothing, and you need to just do something. He encourages you to envision your retirement and what your financial goal looks like.

40:03 Final Comments

Brandon’s contact information is at brandonrenfro.com. If anyone has a question about something that he hasn’t published an article about on his website, send him an email and he will write about it!

41:15 Conclusion

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Robert Pagliarini Earns PhD in Financial & Retirement Planning

Financial Planning , Retirement Planning

I am very proud to announce that after nearly four years of long nights and weekends, I have successfully earned a PhD in financial and retirement planning from the American College. It’s been quite a journey!

My dissertation is titled Role of Parent-Provided Financial Education on Financial Beliefs, Financial Behaviors & Financial Satisfaction . If you have any interest in the topic, you can read the full dissertation. If you just want an overview, I’ve included the abstract below.

One of the questions I got when I started the program and that I get now that I’ve finished is, “What are you going to do with the PhD?” The answer has been and remains the same . . . provide even better financial counsel to my clients. I’ve always valued personal growth and education, which helps explain all my degrees and designations. I thirst for knowledge because I want to be the very best financial advisor to my clients that I can.

In the PhD program in financial and retirement planning we studied topics such as tax planning, investment portfolio design, behavioral finance, statistical analysis, and retirement income distribution strategies. The last item, retirement income distribution, was a major part of the program. I had the pleasure of studying under Dr. Wade Pfau, one of the leading researchers on how best to provide a lifetime of income in retirement. This topic is critical to retirees as they stop receiving earned income and must rely on income from their portfolio.

It was a long process, but one I am grateful for doing. Some might say that the PhD is the pinnacle of learning, but I’m just getting started!

Role of Parent-Provided Financial Education on Financial Beliefs, Financial Behaviors & Financial Satisfaction

The strength of America’s personal finances is poor. Millions of dollars and valuable classroom time are invested in financial educational programs with the goal of increasing financial knowledge. However, research on the efficacy of formal sources of financial education delivered in high school, college, the workplace, and the military have provided mixed results. This dissertation uses data from the 2015 FINRA National Financial Capability Study to examine the association between parent-provided financial education and objective financial knowledge, perceived financial knowledge, financial self-efficacy, various financial behaviors, and financial satisfaction compared to other formal sources of financial education. The study examines the role of parent-provided financial education through the theoretical lenses of family financial socialization theory, social cognitive theory, and self-efficacy theory. A generalized ordered logit regression analysis demonstrated that parent-provided financial education exhibits a significant association across most levels for all variables of interest, while no significant association was found between parent-provided financial education and objective financial knowledge. As a result of these findings, additional research should be conducted that examines what type of parent-provided financial education is most effective for different populations in order to replace or augment formal financial education programs.

Read the full dissertation here:  Role of Parent-Provided Financial Education on Financial Beliefs, Financial Behaviors & Financial Satisfaction

Pacifica Wealth Advisors

About the Retirement Financial Advisor

Robert Pagliarini, PhD, CFP®, EA is passionate about helping retirees build the retirement of their dreams. He has over 26 years of experience as a retirement financial advisor and holds a Ph.D. in retirement planning. In addition, he is a CFP® Ambassador , one of only 50 in the country, and a real fiduciary . His focus is on how to help make retirement portfolios last decades while providing a steady source of income. When he's not helping people plan their retirement, he can be found writing his forthcoming book,  The Retirement Myth: Escape Average Retirement & Create a High Performance Retirement . If you would like a second opinion to see if your retirement financial plan will keep you comfortable and secure, contact Robert today .

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Skint: Retirement? Financial Hardship and Retirement Planning Behaviors

1 Department of Personal Financial Planning, University of Missouri, 239 Stanley Hall, Columbia, MO 65211 USA

Richard Stebbins

2 Department of Consumer Sciences, University of Alabama, 316-E Adams Hall, Box 870158, Tuscaloosa, AL 35487 USA

Kyoung Tae Kim

3 Department of Consumer Sciences, University of Alabama, 316-C Adams Hall, Box 870158, Tuscaloosa, AL 35487 USA

This study used data from the 2018 National Financial Capability Study to investigate the association between financial hardship and retirement planning behaviors. Results from logistic regressions showed that respondents with high difficulty making ends meet were more likely to calculate retirement needs and more likely to own a non-employer sponsored retirement plan. The perceived over-indebtedness was positively associated with owning an employer-sponsored account while negatively associated with owning a non-employer-sponsored account. Financial fragility was associated with a lower likelihood of calculating retirement needs and having a retirement account. The results of additional generational analyses revealed that the difficulty making ends meet and the perceived over-indebtedness showed different patterns with retirement planning behavior across three generations. In contrast, financial fragility showed consistent and negative associations with the retirement planning behaviors across generations.

Introduction

Families going through financial hardship often struggle with monthly bills, feel they have too much debt, and do not have emergency funds. Planning for retirement is a challenge for families with financial hardships. Retirement planning is a financial goal that demands increasing individual responsibility due to the reduction or loss of guaranteed income streams. Social Security benefits represented 33% of income for the 48 million Americans receiving retirement benefits in 2020 (Social Security, 2020 ). In 2035, 78 million Americans will be over age 65, and the Social Security reserve fund will be depleted, causing benefits to be reduced (Social Security, 2020 ). Defined contribution (DC) plans have replaced defined benefit (DB) plans. In 2020, only 25% of Americans had access to a DB plan (Bureau of Labor Statistics, 2020 ), and less than half of those DB plans were covered by the Pension Benefit Guaranty Corporation (PBGC, 2019 ). However, 60% of Americans have access to a DC plan (Bureau of Labor Statistics, 2020 ).

The annual poverty rate in the United States was 10.5% in 2019 (Semega et al., 2020 ) and peaked at 17.3% in September 2020 during the global COVID-19 pandemic (Parolin et al., 2020 ). Retirement savings and planning can be a salient issue, especially for those who had furloughed or laid off due to the pandemic. The Coronavirus, Aid, Relief, and Economic Security (CARES) Act adjusted loan borrowing terms from 401(k)s, to ease financial burdens, at the cost of future retirement account accumulations. Nationwide, the United States Census Bureau expects 35.6% of adults to have difficulty paying usual household expenses, 35.3% to be behind on rent or mortgage, and 31% of adults to expect someone in their house to have a loss in employment income in the next month (U.S. Census Bureau, 2020 ). Understanding the relationship between financial hardship and retirement planning is key for the long-term well-being of US households.

It has been documented in the literature that household financial and economic hardship can be significantly associated with financial behavior and well-being. For example, Gjertson ( 2016 ) suggested a close relationship between emergency savings and household economic hardship. Baek and DeVaney ( 2010 ) found that utilizations of credit and savings were the two primary methods to cope with household economic hardship. Park et al. ( 2017 ) found that financial hardship could indirectly and negatively relate to mental distress. Moreover, family financial hardship can also have negative influences on children. Parents experiencing economic hardship could also trigger mental distress of children in high school (Lempers et al., 1989 ), and such effect can last when children grow into adulthood (Sobolewski & Amato, 2005 ). However, the association between financial hardship status and retirement planning behavior has been understudied relatively.

This study investigates the relationship between financial hardship and retirement planning behaviors of US workers. We particularly examined the role of financial hardship on retirement planning proxied by calculating retirement needs and having a retirement account. Financial hardship was examined using three measures; (a) making ends meet, (b) perceived over-indebtedness, and (c) financial fragility. Similar analyses were conducted across subsamples of three generations, Millennials, Generation X, and Baby Boomers to examine generational differences and for the robustness check of our results. The findings make an important contribution to the field of retirement planning behavior from a financial hardship perspective and provide practical and policy implications.

Review of Literature

Retirement planning behavior.

The life cycle hypothesis is an economic theory that assumes households take future income into account when planning lifetime spending (Ando & Modigliani, 1963 ). According to the life cycle hypothesis, individuals seek to smooth lifetime consumption by borrowing, saving, and dissaving (Ando & Modigliani, 1963 ). To do so, households borrow when young, save for retirement during the earning years, and then spend those dollars in retirement (Ando & Modigliani, 1963 ). This smooth pattern of consumption can be measured as expenditures on nondurable goods, services, nonauto durables, and durable goods (Poterba, 2000 ). In order to maintain a stable level of consumption throughout a lifetime, the amount saved for retirement should be lower for those with pension plans and access to Social Security benefits. Savings invested in a retirement account to dissave in retirement can differ in households with children and the culture also may influence whether that impact is positive or negative (Modigliani & Cao, 2004 ).

Households planning for retirement should consider when they plan to retire, how long they expect retirement to last, and how they envision life in retirement. It is also important to understand income sources during retirement; Social Security benefits are a significant income source for retirees (Dushi et al., 2017 ). Those with lower earnings are more likely to file early and receive a reduced Social Security benefit (Gillen & Heath, 2014 ). These considerations allow for calculating retirement needs and an optimal savings rate required to reach that goal; however, most people use heuristics rather than calculations (Bernartzi & Thaler, 2007 ). The pre-retirement savings rate decisions, if considered, are often too low and result in a savings shortfall or a delay in retirement (Romm, 2015 ). A withdrawal rate should also be calculated to ensure funds will not be depleted during retirement (Bengen, 1994 ; Pfau, 2011 ).

Retirement planning behavior is influenced by many factors, including financial knowledge, education, income, age, and even financial sophistication (Hira et al. 2009 ; van Rooij et al., 2012 ; Kim & Hanna, 2015 ). Generational differences have also been examined. Given the shift from defined benefit plans to defined contribution plans (Bureau of Labor Statistics, 2020 ), it is not surprising that only 8.9% of working Millennials have a defined benefit plan (Yao & Cheng, 2017 ). In addition, 74% of Millennials believe that Social Security benefits will not be available at retirement (Wells Fargo, 2016 ). This places more onus on Millennials to plan for retirement, yet Millennials prefer a higher salary and weaker retirement benefits while Baby Boomers prefer a lower salary and stronger retirement benefits (Wells Fargo, 2016 ). Despite that preference for stronger retirement benefits, Baby Boomers also expect to continue working past Social Security retirement benefit eligibility (Dong et al., 2017 ). Generation Xers and younger Baby Boomers have a similar risk of being unable to smooth consumption in retirement at 57% and 50%, respectively, while older Baby Boomers have a 37% risk (Munnell et al., 2006 ). The breadth of research highlights the importance. Here we focus on two aspects of retirement planning; calculating retirement needs and retirement account ownership.

Calculating retirement needs can be complicated and challenging due to anxiety created by market volatility (Sharpe, 2020 ). Less than half of U.S. households attempt to calculate retirement needs; however, 77% of workers are confident that they will have a comfortable retirement (EBRI, 2020 ). Those with higher financial literacy levels are more likely to have calculated retirement needs (Lusardi & Mitchell, 2017 ). Confidence in a comfortable retirement is closely related to owning a retirement plan (EBRI, 2020 ). 60% of Americans have access to a defined contribution retirement plan (Bureau of Labor Statistics, 2020 ).

Financial Hardship

There has not been a consistent definition of household financial hardship. This concept is often interchangeably used with economic hardship, which can be defined as “a lack of the money needed to meet family needs for food, clothing, shelter, and medical care” (Mirowsky & Ross, 1999 , p. 549). An acute financial hardship, such as the family car breaking down and needing repair, can have a temporary negative impact on the family’s budget. If a family does not have an emergency fund, recovery can take longer. A chronic financial hardship, such as ongoing medical care for a family member with a disability, can have a lifelong negative impact on the family budget. Financial hardship is comprised of three factors in this study: (a) the ability to meet monthly expenses, (b) perceived over-indebtedness, and (c) financial fragility. Financial hardship can be conceptualized with both objective and subjective measures, including, for example, inability to make ends meet (difficulty covering monthly expenses), high debt, and material hardship (Short, 2003 ). Other financial hardship indicators include delaying paying off bills, rent, or mortgages (Gjertson, 2016 ). Financial challenges influence more stress than jobs, relationships, health concerns, or any other stressor (PwC, 2020 ). Financial hardship is found to have a positive role in holding negative perceptions of the current financial situation and perceived stress level among middle-aged US adults (Park et al., 2017 ).

In 2018, half of Americans had some difficulty making ends meet, and 55% of Americans spent all or over their current income (FINRA, 2018 ). Saving for the future is difficult when necessary spending consumes or exceeds current income (Schreiner & Sharraden, 2007 ). The ability to make ends meet is considered an essential element of financial capability; however, about half of US adults reported failing to do so (Lusardi, 2011 ). Using the 2009 TNS Global Economic Crisis survey, Lusardi and colleagues ( 2011 ) used the confidence to come up with $2000 in 30 days as a measure for financial fragility and found that a large decrease in wealth can be related to financial fragility. Similar evidence that financial fragility is a pervasive national issue was found in a recent study using the 2015 National Financial Capability Study and the 2015 Survey of Household Economics and Decision-making with comparable measures of financial fragility pervasive nationally (Hasler et al., 2018 ).

While the life cycle hypothesis suggests consumers should borrow to smooth consumption, there are recommended debt ratios (Consumer Financial Protection Bureau, 2019 ; Experian, 2021 ). Consumers may have a good reason for violating the prescriptive ratios, so over-indebtedness can also be gauged through the consumer’s subjective perception of their debt levels (Tufano & Lusardi, 2009 ). Over-indebtedness may mediate relationships between poverty, income, and mental health issues (Fitch et al., 2011 ). As a subjective measure, 37% of Americans feel they have too much debt right now (Hasler et al., 2018 ). Student loan debt is also associated with difficulty in saving for retirement (Hiltonsmith, 2013 ). Much of this is felt by Millennials, with student loan debt being more common among the younger respondents (Ciluffo, 2017 ). However, more than half of borrowers across the generations report that student loans have a moderate to significant impact on other financial goals (PwC, 2020 ). Debt is also associated with declines in mental and physical health (Kim & Chatterjee, 2019 ). Long-term debtors (i.e., student loan, mortgage, or car loan borrowers) could be more vulnerable to make ends meet which may be associated with financial distress (de Bassa Scheresberg et al., 2014 ).

Financial fragility has been measured as a ratio with borrowers with low wealth relative to the cost of a business investment (Bernanke & Gertler, 1990 ), and more recently, as an emergency fund of specific dollar amounts (Babiarz & Robb, 2014 ; Hasler et al., 2018 ). One such measure of financial fragility is the ability to immediately come up with $400 to cover an emergency expense, and this has been studied alongside the ability to come up with $2000 within the next month (Hasler et al., 2018 ). According to data from Pew Trusts, 60% of U.S. households experienced a financial shock with a median cost of $2000 in the prior year (Pew, 2017 ). 53% of those households struggled to make ends meet after the event and younger generations were more likely to struggle than older generations (Pew, 2017 ). Having an emergency fund reduces the potential difficulty of covering housing, food, clothing, and medical expenses (Despard et al., 2018 ). Data from the NFCS suggest that subjective financial knowledge, confidence, and owning a savings account are significant predictors of having an emergency fund (Despard et al., 2020 ). However, building an emergency fund is difficult for some households (Lusardi et al., 2011 ; Gjertson, 2016 ), and the difficulty is not limited to those in poverty; 30% of individuals earning $50,000–70,000 are financially fragile, as are 20% of individuals earning $75,000–100,000 (Hasler et al., 2018 ). More than half of Millennials and Generation X reported that they would take hardship withdrawals from retirement plans (PwC, 2020 ).

Research Hypotheses

Based on the literature review, this study constructed two main research hypotheses as follows.

H1: Experiencing financial hardship is negatively associated with calculating retirement needs.

H1-1: Workers who are having trouble making ends meet are less likely to calculate retirement needs. H1-2: Workers who perceive themselves as over-indebted are less likely to calculate retirement needs. H1-3: Workers who are financially fragile are less likely to calculate retirement needs.

H2: Experiencing financial hardship is negatively associated with retirement account ownership.

H2-1: Workers who are having trouble making ends meet are less likely to own a retirement account. H2-2: Workers who perceive themselves as over-indebted are less likely to own a retirement account. H2-3: Workers who are financially fragile are less likely to own a retirement account.

Data and Sample Selection

This study uses the 2018 state-by-state National Financial Capability Study (NFCS). The NFCS was funded by the FINRA Investor Education Foundation and was conducted online from June through October 2018 with adult participants across the US. The objectives of the NFCS were to collect information about financial capability and individuals’ demographic, behavioral, attitudinal, and financial literacy characteristics. Given our study's primary focus, retirement planning behavior, we restricted our analytic sample to workers aged between 25 and 64. Those younger, older, and retired were excluded because they may behave significantly differently in retirement planning and their overall financial goals may be different (Hasler et al., 2018 ). Respondents failing to answer the selected variables of this study were dropped from the analyses. The total sample size of 2018 NFCS is 27,091, and our final sample size included 10,748.

Measurement of Variables

Dependent variables: retirement planning behaviors.

Two aspects of retirement planning behavior were examined, including calculating retirement needs and owning retirement accounts. In this study, four dependent variables were created as follows. First, respondents were asked, “Have you tried to figure out how much you need to save for retirement?” which was coded as a binary dependent variable. Respondents were also asked whether they had any retirement account(s) through two questions: “Do you (or your spouse/partner) have any retirement plans through a current or previous employer, like a pension plan, a Thrift Savings Plan, or a 401(k)?” and “Do you (or your spouse/partner) have any other retirement accounts not through an employer, like an IRA, Keogh, SEP, or any other type of retirement account that you have set up yourself?” Answering affirmatively to either question was coded as a binary variable. Finally, we separated employer-sponsored and non-employer-sponsored retirement accounts ownerships into two binary variables for further analysis.

Focal Variables: Financial Hardship

Three variables were used to measure financial hardship: (a) difficulty making ends meet, (b) perceived over-indebtedness, and (c) financial fragility. Difficulty making ends meet was measured by a question asking, “In a typical month, how difficult is it for you to cover your expenses and pay all your bills?” Three possible responses were “Very difficult,” “Somewhat difficult,” and “Not at all difficult.” Each response was coded as a binary category. Perceived over-indebtedness was measured by the respondent’s answer to the following statement, “I have too much debt right now”, on a 1–7 scale. Lastly, the question “How confident are you that you could come up with $2000 if an unexpected need arose within the next month?” was used to measure financial fragility. Levels of 1 to 4 were created based on the possible responses: “I am certain I could come up with the full $2000”, coded as Level 1, “I could probably come up with $2000” coded as Level 2, “I could probably not come up with $2000”, coded as Level 3, and “I am certain I could not come up with $2000” coded as Level 4.

Control Variables

This study included objective and subjective financial knowledge along with socio-demographic characteristics as control variables. The objective financial knowledge variable was constructed using a summated score of six fundamental financial knowledge questions, such as knowledge about inflation, risk, and compounding, with each coded as 1 if answered correctly and 0 if answered incorrectly. Therefore, the objective financial knowledge was on a 0–6 scale, where 0 means the respondent answered all six questions incorrectly, and 6 indicates that all questions were answered correctly. The subjective financial knowledge variable was measured by a self-assessed question on overall financial knowledge, where 1 means very low, and 7 means very high.

We also included socio-demographic characteristics as control variables, including age, gender, race/ethnicity (White, Black, Hispanic, other), education level (high school and lower, some college, college degree, and post-graduate degree), homeowner, income level ($25,000 and higher, $25,000–$35,000, $35,000–$50,000, $50,000–$75,000, $75,000–$100,000, $100,000–$150,000 and $75,000 and higher), married (yes/no), having financially dependent children (yes/no), and working status (working full-time, part-time, and self-employed). We also controlled for the state of residence in the analyses.

Empirical Model Specification

This study used logistic regression analysis to estimate the relationship between financial hardship and retirement planning. The four retirement planning variables were: (a) calculating retirement needs, (b) owning any retirement account, (c) owning an employer-sponsored retirement account, and (d) owning a non-employer-sponsored retirement account. The logistic regression models can be expressed using

where, P R i is the probability of retirement planning for a respondent i; β 0 is an intercept; FH denotes the vector of financial hardship variables, including the difficulty of making ends meet, perceived over-indebtedness, and financial fragility; Control variables are objective and subjective financial knowledge, socio-demographic characteristics, and state of residency β FH and β C are the coefficients of these variables and ε i  is the error term.

Descriptive Results

As shown in Table ​ Table1, 1 , among all the respondents, around 55% reported having calculated their retirement needs and 79% had some type of retirement account(s). In particular, 74% had retirement accounts through an employer and 41% had non-employer-sponsored retirement accounts. For the financial hardship variables, the proportions of having somewhat difficulty and high difficulty of making ends meet were 35.44% and 11.36%, respectively. The mean of perceived over-indebtedness was 4.07, on a 1–7 scale. Approximately half of the sample reported the lowest level of financial fragility (49.60%), followed by 23.88% (level 2), 12.27% (level 3), and 14.24% (level 4). .

Descriptive statistics of analytic sample, 2018 NFCS dataset

N = 10,748. Unweighted. Sample restricted to non-retired adults aged 25–64 and who provided valid responses to all variables

The mean scores of objective and subjective financial knowledge were 3.39 and 5.24. The mean age was about 44 years old. Of all the respondents, 48.40% were female. 72.67% were White, 38.54% had a college degree, and 66% were homeowners. Moreover, 21.17% had an annual income of $50,000–$75,000, 57% were married, 49% had financially dependent children, and 77% were employed full-time.

Multivariate Results: Logistic Regression Analyses

Dv1: calculating retirement needs.

Table ​ Table2 2 presents regression results on calculating retirement needs. Respondents experiencing difficulties making ends meet were more likely to calculate retirement needs than those not experiencing difficulty. Specifically, compared to those who had no difficulty, those who had a high difficulty making ends meet had 89.7% higher odds of calculating retirement needs, and those who had somewhat difficulty making ends meet had 26% higher odds of calculating retirement needs. As the level of financial fragility increased, the likelihood of calculating retirement needs decreased gradually. Compared to those in the lowest level of financial fragility, those in the second, third, and forth levels showed 37.1%, 50.3%, and 57.8% decreases in odds of calculating retirement needs, respectively. Both objective and subjective financial knowledge were positively associated with the likelihood of calculating retirement needs. Providing an additional correct answer to the six objective financial knowledge questions was associated with 20.7% increase in the odds of calculating retirement needs, while a one-point increase in the subjective financial knowledge was associated with 41.4% increase in the odds of calculating retirement needs. Black respondents were more likely than their White counterparts to calculate retirement needs. Educational attainment, being a homeowner, and the level of income showed positive associations with the likelihood of calculating retirement needs.

Logistic regression analysis of retirement need calculation, 2018 NFCS

Note. N = 10,748. Unweighted. Sample restricted to non-retired adults aged 25–64 and who provided valid responses to all variables

* p  < 0.05; ** p  < 0.01; *** p <.001

DV2: Retirement Account Ownership (any type)

Results from logistic regression on any type (i.e., through an employer or not through an employer) of retirement account ownership were presented in Table ​ Table3. 3 . The level of perceived over-indebtedness was associated positively with the likelihood of owning any retirement account. Specifically, a one-point increase in the perceived over-indebtedness was associated with 3.5% increase in the odds of owning any type of retirement account. As the level of fragility increased, the likelihood of owning any type of retirement account decreased gradually. In particular, compared to those in the lowest level of financial fragility, those in the second, third, and forth levels showed 52%, 62.7%, and 66.3% decreases in odds of owning any type of retirement account, respectively. Both objective and subjective knowledge were positively associated with the likelihood of owning any type of retirement plan. Providing an additional correct answer to the six objective financial knowledge questions was associated with 16.5% increase in the odds of owning a retirement account, while a one-point increase in the subjective financial knowledge was associated with 8.7% increase in the odds of owning a retirement account of any type. Furthermore, age and income levels showed positive associations with the likelihood of owning a retirement account. Being female, Black, a homeowner, and having a college degree or higher educational attainment increased the likelihood of owning retirement accounts. Compared to full-time workers, part-time workers and self-employed workers showed a lower likelihood of owning retirement accounts of any type.

Logistic regression analysis of retirement account ownership (any type), 2018 NFCS

DV3 and DV4: Retirement Account Through vs. Not-Through Employer

Table ​ Table4 4 shows additional logistic regression analysis on employer-sponsored and non-employer sponsored plans. There was no association between the difficulty of making ends meet and the ownership of employer-sponsored plans. Respondents who reported making ends meet was very difficult were more likely to own non-employer sponsored plans. More specifically, the odds of owning a non-employer-sponsored retirement account of those who had a high difficulty making ends meet were 2.04 times higher than those who had no difficulty. The level of perceived over-indebtedness was associated positively with the likelihood of owning employer-sponsored plans while associated negatively with the likelihood of owning non-employer-sponsored plans. In particular, a one-point increase in the perceived over-indebtedness was associated with 5.3% increase in the odds of owning an employer-sponsored account but was associated with 6.3% decrease in the odds of owning an employer-sponsored account. The likelihood of owning employer-sponsored and non-employer sponsored retirement accounts decreased gradually as the level of fragility increased. In particular, compared to those in the lowest level of financial fragility, those in the second, third, and forth levels showed 39.9%, 55%, and 57.7% decreases in odds of owning an employer-sponsored retirement account, respectively. Similarly, for non-employer-sponsored retirement account ownership, compared to those in the lowest level of financial fragility, those in the second, third, and forth levels showed 52.7%, 65.1%, and 78.9% decreases in odds, respectively. Moreover, we observed positive associations between both objective and subjective financial knowledge with the likelihood of owning either employer-sponsored or non-employer sponsored retirement plans. The sociodemographic characteristics and state of residence were controlled in these regression analyses. Full results are available from the authors upon request.

Logistic regression analysis of retirement account ownership (employer-sponsored and non-employer sponsored)

Note. N = 10,748. Unweighted. Sample restricted to non-retired adults aged 25–64 and who provided valid responses to all variables. Sociodemographic variables are the same as Tables ​ Tables2 2 and ​ and3 3

Additional Analyses by Generation

Because retirement planning behavior varies substantially by age and generation (Munnell et al., 2006 ; Hira et al., 2009 ; Kim & Kim, 2010 ; Yao & Chen, 2017 ), we conducted additional logistic regression analyses by generations for the four dependent variables of interest. Following Pew Research Center’s ( 2018 ) categorizations of generations, we grouped our sample into Millennials (Born 1981–1997), Gen-X (Born 1965–1980), and Boomers (Born 1946–1964).

Among the Millennial group, around 52% reported having calculated retirement needs, 75% had any type of retirement account, 71% had employer-sponsored account(s), and 36% had non-employer-sponsored account(s). About 39% and 18% reported making ends meet was somewhat or very difficult. The average perceived over-indebtedness was 4.60 out of 7. 44% of the Millennials reported having the lowest financial fragility level, while 16% reported having the highest level of financial fragility. Of all Gen-Xers, 53% had calculated retirement needs, 79% had any type of retirement account, about 75% had employer-sponsored account(s), and about 38% had non-employer-sponsored account(s). The majority (54%) had no difficulty making ends meet and about 36% experienced some difficulty. The average perceived over-indebtedness of Gen-Xers was 4.10 out of 7. Close to half of this generation had the lowest financial fragility level (47%), and 15% reported the highest level of financial fragility. Among the Baby Boomers, around 64% had calculated retirement needs, 84% had any type of retirement account, 77% had employer-sponsored account(s), and 52% had non-employer-sponsored account(s). Over half (66%) had no difficulty making ends meet and only about 5% reported making ends meet was very difficult. The majority (62%) had the lowest level of financial fragility and about 8% and 10% reported having levels 3 and 4 of financial fragility respectively (Table ​ (Table5 5 ).

Descriptive statistics of analytic sample across generations, 2018 NFCS

Table ​ Table6 6 presents the regression results for retirement need calculation, any retirement account ownership, employer-sponsored account ownership, and non-employer-sponsored account ownership across three generations. Among the three financial hardship measures, financial fragility showed consistent patterns across the three generations, whereas difficulty making ends meet and the perceived over-indebtedness showed different associations with the four dependent variables by generation.

Logistic regressions on retirement planning behavior across generations

Note. N = 10,748. Unweighted. Coefficients are reported with standard errors in parentheses. Sample restricted to non-retired adults aged 25–64 and who provided valid responses to all variables. Ages are in 2018 at the time of the survey. Millennials: ages 25–37, Gen X: ages 38–53, Boomer: ages 54–64. N(Millennials) = 3754; N(Gen X) = 4377; N(Boomer) = 2617. The generation categories were created following Pew Research Center ( 2018 ). Sociodemographic variables are the same as Tables ​ Tables2 2 and ​ and3 3

In particular, Millennials and Boomers reporting that making ends meet was somewhat or very difficult were more likely to calculate retirement needs as compared to those who did not have any difficulty. However, among Gen-Xers, only those reporting making ends meet was somewhat difficult were more likely to calculate retirement needs. Moreover, perceived over-indebtedness was negatively associated with the likelihood of calculating retirement needs only among the Boomers. In terms of retirement account ownership, the negative association between very difficulty making ends meet and owning any retirement account was only found among Gen-Xers.

When examining employer-sponsored and non-employer-sponsored retirement account ownership separately by generation, we also observed generational differences in the roles of the ability to make ends meet and the perceived over-indebtedness. Specifically, Millennials reporting high difficulty in making ends meet was positively associated with the likelihood of owning both employer and non-employer sponsored retirement accounts when compared to their counterparts. However, this relationship was found to be negative among Gen-Xers and Boomers for their employer-sponsored account ownership. We also found that the perceived over-indebtedness was positively associated with the likelihood of having employer-sponsored retirement accounts of Gen-Xers. Lastly, there was a negative association between the perceived over-indebtedness and the likelihood of owning non-employer-sponsored retirement accounts among the Gen-X and Boomer generations.

Discussion and Implication

This study examined the association between financial hardship and retirement planning behavior. Using the 2018 NFCS dataset, we found that high difficulty making ends meet was positively associated with the likelihood of calculating retirement needs, which was the opposite of H1-1. Further investigation on the positive relationship found in the current study between the difficulty making ends meet and the tendency to calculate retirement needs is needed. One possible explanation is that those who have difficulty covering monthly expenses could be more concerned about their long-term financial security. Financial capability is key for financial stability and security (Sherraden et al., 2015 ) and the inability to make ends meet could indicate low financial capability to reach long-term financial security. We also found that the increase in financial fragility levels was negatively associated with the likelihood of calculating retirement needs, which supported H1-3. This is consistent with previous literature that found saving for long-term goals can be challenging for those with current financial difficulties (Schreiner & Sharraden, 2007 ).

When examining retirement account ownership (of any type), the results showed that the perceived over-indebtedness was positively related to the likelihood of owning a retirement account, opposite to H2-2. However, perceived over-indebtedness was negatively related to the likelihood of owning a non-employer-sponsored account. These conflicting results can be explained by the ability to take out a loan. Lenders are more likely to lend to someone with a stable job that comes with an employer-sponsored retirement plan. The borrower might not be contributing to the plan and cannot afford to create a non-employer-sponsored plan due to perceived over-indebtedness. This can be one explanation for the positive relationship found between over-indebtedness and owning any retirement account. In addition, the increase in financial fragility levels was negatively associated with the likelihood of owning any retirement account, supporting H2-3. When examining employer-sponsored and non-employer sponsored retirement account ownership separately, we found varying associations with difficulty making ends meet and perceived over-indebtedness. Particularly, those reporting making ends meet was very difficult were more likely to hold non-employer sponsored retirement plans. Individuals with higher perceived over-indebtedness were more likely to own an employer-sponsored retirement account but less likely to own a non-employer sponsored account. Financial fragility showed a negative relationship with the likelihood of calculating retirement needs and having a retirement account of any type or established through or not-through an employer. Furthermore, the results showed that while financial fragility showed consistent patterns across generations, the difficulty of making ends meet and the perceived over-indebtedness showed different associations with retirement planning behavior across generations.

This study has some limitations to be noted. First, given the cross-sectional structure of the NFCS dataset, we were unable to make a causal inference between financial hardship and retirement planning behaviors. The use of a longitudinal dataset may allow researchers to address a possible causal inference using an appropriate statistical method. Second, the NFCS dataset does not collect details of balance sheet information. For example, we used the ownership of employer or non-employer sponsored retirement plans, but the accumulated amount of the retirement plan is not available. Even though we used homeownership as a proxy for wealth, but this could be a limitation. In addition, insurance coverage could influence financial fragility by reducing the need for emergency funds. Finally, questions as a proxy for financial hardship are based on the respondent's self-assessment about their financial indebtedness and hardship, which may be inconsistent with the actual level of financial hardship. Future studies may revisit this issue to construct a comprehensive measure to incorporate perceived and actual financial hardship levels.

Planning for retirement to reach financial security has become more critical for individuals and households as employers have shifted to DC plans. However, we found that only about 55% sample reported having calculated retirement needs, and even among non-retired older individuals (i.e., Gen-Xers and Boomers), only about 53 to 64% had ever calculated their retirement needs. The percentage was the lowest for Millennials with only 52% having calculated retirement needs. These findings are concerning because the lack of planning ahead for retirement has not been improved in the past decade, as shown in the Lusardi ( 2011 ) study using the 2009 wave of NFCS. As 80% of our sample reported, simply owning retirement accounts does not guarantee adequate savings for retirement. Therefore, it is urgent for policy makers to promote and increase awareness of retirement planning's significance and develop retirement planning education programs and tools. Previous studies have suggested that more effective and integrated approaches, such as peer-to-peer engagements over social media, are needed to engage Millennials due to their low awareness of their lack of financial knowledge and but high confidence in financial management ability (de Bassa Scheresberg et al., 2014 ). Persuasive communication approaches are also proposed based on psychological theories, such as increasing perceived savings ability based on self-efficacy and motivational theories, increasing actual ability to save by enhancing internal willpower and external structural changes (i.e., automatic enrollment) to promote retirement savings (e.g., Wiener & Doescher, 2008 ).

The current study provides new insight into retirement planning behaviors by examining its relationships with multiple aspects of financial hardship, including the ability to making ends meet, perceived over-indebtedness, and financial fragility. We found that those who found it very hard to make ends meet were more likely to own non-employer sponsored retirement plans. However, without enough income or liquid savings to cover monthly expenses, these households may not be able to make contributions. Interestingly, we found that the experience of somewhat or high difficulty making ends meet was more likely to push people to engage in retirement calculation behavior. Retirement needs calculators are easily accessible from reputable brokerage houses and consumer advocacy websites. Governmental organizations such as the Social Security Administration and the Internal Revenue Service could offer these tools to consumers. However, financial hardship may prevent contributing to a retirement account. These findings may indicate a potential dilemma among those struggling to make ends meet.

That said, policy implications include encouraging having emergency funds through legislative action. The Saver’s Credit has incentivized retirement savings by allowing individuals with moderate-income to reduce tax liability dollar-for-dollar up to $2000 by contributing to a retirement plan. However, only 38% of workers are aware of the credit, and that number goes down with less-educated, lower-income, and those over the age of 37 (Transamerica Center for Retirement Studies, 2020 ). Less than 6% of eligible filers claimed the credit (AARP, 2017 ); automatically creating a Saver’s IRA account at tax filing that took advantage of the credit with opt-out ability would increase retirement savings. Increasing awareness could boost that 6 to 100%. For taxpayers receiving a refund, the ability to defer a portion of the refund into a Treasury-held account that accumulates interest and is later transferred to the filer’s direct deposit would create an emergency fund. This idea was proposed in the Refund to Rainy Day Savings Act, which was introduced to Congress in 2019 and is currently under review by Committee (S.1018, 2019 ).

Policy considerations to ease over-indebtedness exist in the form of public service loan forgiveness programs. However, less than 2% of applicants have had debt discharged (U.S. Department of Education, 2020 ). Discussions are underway to forgive portions of student loans, but no additional legislation has been passed. The perceived over-indebtedness as found in the current study was negatively associated with pre-retired Baby Boomers’ retirement calculation and non-employer sponsored retirement account ownership.

This research is especially salient given the 17.3% peak in the poverty rate in September 2020 in the midst of the global COVID-19 pandemic (Parolin et al., 2020 ). Families are struggling financially in the United States and government policy designed to ease the financial burdens can only go so far. However, following the development and distribution of vaccines, the Dow Jones Industrial Average is near an all-time high at 33,874.36 on May 4, 2021. Unemployment has dropped to 6% in March 2021 (Bureau of Labor Statistics 2021 ). With so many families recently experiencing financial hardship, budgeting and taking steps to save for the future might be the next logical step. This research provides a greater understanding of the relationship between financial hardship and retirement planning. This will continue to be an integral part of the long-term well-being of families. Future studies can continue investigating this topic by examining, for example, how can financially fragile families be encouraged to save for their future?

Declarations

The authors declare that they have no conflict of interest.

This article does not contain any studies with human participants or animals performed by any of the authors.

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Contributor Information

Lu Fan, Email: ude.iruossim@ulnaf .

Richard Stebbins, Email: ude.au.sehc@snibbetsr .

Kyoung Tae Kim, Email: ude.au.sehc@miktk .

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School of Financial Planning

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Earn one of the nation's best Personal Financial Planning degrees. The New York Times says Texas Tech University has "arguably the best undergraduate financial planning program in the country." Personal financial planning firms look to Texas Tech University for new talent.

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The Core Values of The School of Financial Planning are:

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Personal Financial Planning Programs

B.s. personal financial planning, online b.s. applied personal finance, undergraduate minors.

On-Campus or Online

M.S. Personal Financial Planning

Online m.s. personal financial planning, ph.d. personal financial planning, graduate certificate in charitable planning, graduate certificate in financial health & wellness, contact ttu.

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• MS in Financial Planning

Master’s (MS) in Financial Planning

100% online, on-site, and hybrid study options.

The field of financial planning is growing exponentially, and as a result, the demand for financial planners who assist individuals in planning for their financial future, has greatly increased. This NEW 30-credit financial planning degree, offered by the NYU SPS Division of Programs in Business , is certified by the Financial Planner (CFP®) Board of Standards and prepares students for financial planning jobs in private practice, as well as in settings such as banks, investment firms, and wealth management firms. As large numbers of financial planners retire, a financial advisor career will become a path that can provide a competitive salary as well as great satisfaction in helping others. In fact, US News and World Report ranks financial planning among the best business jobs and best-paying jobs (12/2020). The MS in Financial Planning offers all of the benefits, resources, and prestige of earning your degree at NYU , while building financial planning and analysis skills that prepare you for a lucrative career.

Degree Advantage

• 100% online, on-site, and hybrid degree options available
• Can be completed in three semesters (Fall, Spring, Fall or Spring, Fall, Spring) of full time study
• Flexible full- or part-time study options
• Degree core curriculum that prepares you for financial planning jobs in a variety of settings
• Degree concentrations in Behavioral Finance and in  Financial Analytics
• Exposes you to financial planning and analysis, as well as real-world case studies
• Capstone course that integrates each of the major aspects of financial planning

VIEW FULL CURRICULUM AND DEGREE REQUIREMENTS >

Explore graduate opportunities at nyu sps.

Join an upcoming online session to learn more about our graduate degree programs including the MS in Financial Planning. As an attendee of an Explore Graduate Opportunities at NYU SPS session, you will meet members of our team and have the opportunity to ask questions about the program and application process.

6:00 PM until 7:30 PM EDT  

Who Should Consider Earning the Master’s in Financial Planning?

Earning the MS in Financial Planning is beneficial for both early career professionals and mid-career professionals, who will be prepared with strong analytical skills to enter the industry. Those who have studied finance, economics, accounting, law, and business, and who enjoy working with people would do well in a career that involves personal financial planning. While some financial planners are able to learn skills on the job, the US Bureau of Labor Statistics indicates that a master’s degree can improve a personal financial advisor’s chances of moving into a management position and attracting new clients.

Message from the Faculty Leader

The MS in Financial Planning program meets the requirements to sit for the Certified Financial Planner (CFP®) Exam and provides an opportunity to develop the skills and knowledge necessary to become a financial professional. The program consists of the core CFP® curriculum and offers two concentrations, one in Financial Analytics and the other in Behavioral Finance .

Featured Faculty

Sahil vakil.

Finance and Taxation

Colin M Slabach

Matthew g ricks.

Personal financial advisors (financial planners) typically need a bachelor’s degree. A master’s degree and certification can improve one’s chances for advancement in the occupation. US Bureau of Labor Statistics

Gain Skills to Work in Corporate Settings and Private Practice

Not sure whether you would like to work for a company/ organization or start your own financial planning practice? This degree prepares you for both options. Gain the skills to work as part of a larger team as well as the knowledge and business acumen to pursue a career that provides you with the opportunity to make your own hours and choose the clients whom you would like to serve.

Explore Degree Concentrations That Provide the Professional Advantage

Meticulously researched to ensure relevancy in the evolving, data-driven financial landscape, the MS in Financial Planning provides concentrations in the areas of Behavioral Finance and Financial Analytics that will set you apart by building skills and knowledge in emerging areas of the field. You’ll be prepared to understand the psychological and emotional factors that drive financial decision-making and have the option to delve deep into the financial analysis that affords a look at key trends.

Learn From Financial Planning Experts

Those teaching in the MS in Financial Planning are industry experts, with years of experience in the field. They impart the knowledge you need now in the form of immediately applicable skills, which you can use on the job. In addition, they provide the underlying guidelines for becoming a well-rounded, effective, and ethical financial planner—information and advice that will serve you during the entire span of your career.

Career and Job Opportunities

As a student enrolled in the MS in Financial Planning , you will receive expert career advice from faculty members in the program, and the award-winning NYU Wasserman Center for Career Development at NYU SPS . You’ll also have the opportunity to join a cohort of students from a wide variety of cultural and professional backgrounds, which allows for enriched classroom discussion and networking opportunities.

FREQUENTLY ASKED QUESTIONS

Is there a certification associated with the m.s. in financial planning.

The program is certified by the Financial Planner (CFP®) Board of Standards. The CFP Board is a non-profit organization acting in the public interest by fostering professional standards in personal financial planning through its setting and enforcement of the education, examination, experience, ethics, and other requirements for CFP® certification. The CFP® certification is generally recognized as the highest standard in personal financial planning, qualifying financial planning professionals to provide clients with comprehensive financial advice. Students will be eligible to take the CERTIFIED FINANCIAL PLANNERTM certification examination upon completion of their coursework. The Certified Financial Planner™ certification is a well-known, internationally recognized certification in the financial planning industry. The certification implies that the holder has met rigorous requirements and immediately conveys expertise and credibility in the field.

What is financial planning?

Financial planning is the comprehensive process of helping individuals and families meet their lifetime financial goals through the proper management of their financial resources. Currently financial planning is growing at a rate faster than many other industries. An increased number of financial planners will be necessary to meet the growing demand for future jobs in the industry, which is ranked 23rd by market size and is the 179th largest in the United States.

What does a financial planner actually do?

Financial planning professionals are trained and hired by clients to gather the necessary information to assess the clients’ financial situation, identify their financial goals and objectives, develop recommendations, communicate and implement those recommendations, and provide a written plan for continuous monitoring. Studies show that individuals who use the services of a comprehensive financial planner tend to do better financially.

Why pursue a career in financial planning?

The industry is faced with an aging workforce since 56% of financial planners are over the age of 50. Opportunities for individuals who want to build a lucrative and promising career in the industry have never been greater. According to the Bureau of Labor Statistics (BLS), the median annual salary for a financial advisor in 2018 was $88,980 nationally, and in New York the average annual salary was $164,260.

Why earn an MS in Financial Planning at NYU SPS?

The Master of Science in Financial Planning is housed within the School of Professional Studies (SPS) at NYU. SPS has a long history of training students in applied disciplines where the emphasis is on providing them with the knowledge, hands-on experience, and the development of job skills pertinent to the industry, thus graduating the kind of students that employers seek to recruit.

What financial planning courses are available through this degree?

Financial planning students can be expected to take courses in financial planning and risk management, investments and wealth management, income tax strategies, retirement planning strategies, estate planning, research applications, and a comprehensive capstone course, which combine all the areas of financial planning. In addition, students will be able to choose an area of concentration. Students that want to work directly with clients can take courses in behavioral finance while those who wish to work in a more data-driven financial planning role can take courses in financial analytics. Students may be able to secure internship opportunities for practical experience.

What types of financial planning jobs are available?

One of the best things about a career in financial planning is the flexibility it offers. Many financial planners become entrepreneurs and establish their own practices; this affords the planners the most flexibility and control over their careers. Many others decide to work for a financial planning firm with direct interaction with clients or in a research or analytics capacity. Yet some others may wish to work for large financial service organizations or banks.

Is a career in financial planning rewarding?

Financial planning has a direct impact on people’s lives by transforming their financial health. It is about helping individuals and families achieve financial well-being and helping people to get out of debt, send their children to college, or retire comfortably. A career as a financial advisor was rated number nine by US News and World Report in their Best Business Jobs survey. The survey also ranked the career as a financial advisor 44th on their list of the top 100 best jobs.