What Is an Accredited Asset Management Specialist (AAMS)?
I'm here to explain the Accredited Asset Management Specialist, or AAMS, which is a professional designation from the College for Financial Planning. You earn it by completing a self-study program, passing an exam, and agreeing to a code of ethics.
If you succeed, you can use the AAMS title with your name for two years. This can boost your job prospects, reputation, and salary in the financial field.
Key Takeaways
The AAMS stands as an industry standard for asset management skills, backed by major financial firms. You must finish a demanding self-study course, pass the exam, and follow ethical guidelines to get it. Maintaining it involves 16 hours of continuing education every two years and a $95 fee.
Understanding the AAMS Designation
The AAMS program started in 1994 and is delivered online via the College for Financial Planning's platform, which is owned by Kaplan and targets working adults in finance.
It includes 10 modules that begin with the asset management process and extend to investments, insurance, taxes, retirement, and estate planning. To keep your designation, you complete 16 hours of continuing education biennially and pay the fee. This education is crafted with input from top investment firms, and you'll study real-world case studies to build client relationships.
What Does an AAMS Do?
As an AAMS, you gain the knowledge to guide clients toward their financial goals, covering college savings, taxes, and retirement. Your focus is on personal finances beyond basic banking, including asset management and investments.
You might work as a financial advisor, registered investment advisor, client relationship manager, or similar roles.
How to Attain AAMS Certification
The College for Financial Planning, which also created the CFP, grants the AAMS. Enroll directly on their website by selecting the program, paying, and choosing materials like printed study guides.
Once you have access, you get 120 days to complete the course and pass the exam. The program uses online videos, self-study, and optional printed materials. The exam has 80 questions, requires a 70% to pass, lasts three hours, and allows two attempts.
Topics Covered in the Self-Study Program
- The asset management process
- Investment strategies
- Policy and change
- Risk, return, and investment performance
- Asset allocation and selection
- Taxation of investment products
- Investment opportunities for individual retirement
- Investment considerations for small business owners
- Executive compensation and benefit plans
- Insurance products for investment clients
- Estate planning
- Regulatory and ethical issues
Maintaining Your Certification
After certification, maintain it with 16 hours of continuing education yearly and a $95 renewal fee every two years.
AAMS vs. CFP
The AAMS targets personal finance, asset management, and investments, ideal for new advisors or those shifting careers. In contrast, a CFP helps clients across their entire lives, adapting to changes and goals. The CFP is the top credential, needing 6,000 hours of experience before the exam.
Special Considerations
FINRA doesn't endorse designations, but lists AAMS among industry options. The College for Financial Planning notes it counts as 28 continuing education hours in some contexts. They keep a database of holders, and passing AAMS gives credit toward CFP module FP511.
Frequently Asked Questions
What does AAMS stand for? It's Accredited Asset Management Specialist, certified by the College for Financial Planning for advising on personal finance, assets, and investments.
Which is better, AAMS or CFP? AAMS suits entry-level or personal finance-focused advisors, while CFP covers lifelong planning from savings to retirement.
How long to study for AAMS? You have 120 days from access to pass the exam, depending on your study pace.
The Bottom Line
An AAMS certifies you to advise on personal finances, asset management, and investments through a rigorous program. It's challenging for investment newcomers but a solid step toward the prestigious CFP designation.
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