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Are you looking for a new career in finance?  Or do you just wonder what all those three letter acronyms mean that people throw around?  Here is a quick summary of some of the most popular financial career acronyms, and how to become one yourself.

How to become a CFP ?- A Certified Financial Planner is a certification mark for financial planners and in the United States is governed by the Certified Financial Planner Board of Standards.  Financial advisers work either independently or through firms that sell financial planning advice, and programs.  The detailed steps to become a CFP are listed on their website, but the summary is:

1. Obtain a bachelor’s degree in any discipline, plus complete the CFP board registered curriculum.
2. Pass the 10 hour CFP Certification Exam.
3. Have at least 3 years experience in the financial planning industry.
4. Pass a mandatory background check.

How to work as a financial planner? – Surprisingly enough, completing the CFP certification and passing the exam does not give you the right to work in the industry.  In fact a large percentage of financial planners in practice today have no official CFP designation.  To practice as a financial planner, and be licensed to sell financial products, it is necessary to pass the Series 7 exam.  From the SEC website, “Individuals who want to enter the securities industry to sell any type of securities must take the Series 7 examination—formally known as the General Securities Representative Examination.”  The detailed information for taking the Series 7 are listed on the FINRA website.  For those considering financial planning as a career, it may be more cost effective to skip the costly CFP program and apply directly to a financial planning firm for sponsorship, and prior to taking the series 7 exam.  After passing the series 7 exam, it is always possible to complete the CFP program as a suplement to your education and business card listed credentials.

How to become a CFA? – The chartered financial analyst program is governed by the CFA Institute.  It is a 3 year self study program that requires taking and passing 3 financial theory intensive exams over a 3 year span.  It is best to have a strong finance and/or economics background before attempting this track.  The types of jobs that a CFA or CFA candidate would target would be investment consultant, fund manager, financial risk manager, wealth manager, or similar.

How to become a registered investment advisor (RIA)? – An RIA is very similar to a financial planner, but it is not licensed through FINRA.  RIA’s are indpendent advisors who generally work on their own, and outside of the control and limitations of larger financial firms.  Whereas financial planners are licensed through FINRA, RIA’s are generally licensed through a state.

How to become a CPA? – A CPA is a certified public accountant.  While it’s not necessary to hold the CPA designation to practice accounting, it will add an additional layer of credentials that can earn you a much higher salary.   The general requirements to earn the CPA designation are:

• A bachelor’s degree, and
• 24 semester credits in accounting and 24 in business
• Passing a uniform CPA exam
• Passing an ethics course
• 2 years general accounting experience supervised by a licensed CPA

How to become a CTA? – A commodity trading advisor is someone (or a firm) that gives people advice on options and futures for a fee.  They may also run managed futures accounts for clients on a fee basis.  CTA’s are regulated by the Commodity Futures Trading Commission.  CTA’s are required to be members of the National Futures Association (NFA).   And in order to practice, a person must pass the series 3 commodity and futures exam, administered by FINRA.  d

Pass series 3 commodity and futures exam.  Link to www.nfa.futures.org  Mention 15 client exemption that allows trading for others without license (up to 15 clients). (http://nvcatoday.nvca.org/index.php/hedge-fund-registration-legislation-introduced-in-congress.html)  Link to www.managedfutures.com  Benefits of managed futures vs hedge fund (segregated accounts, no lockout period, easy to revoke power of attorney)

How to become a CPO? – From the NFA website, a Commodity Pool Operator is “an individual or organization which operates or solicits funds for a commodity pool; that is, an enterprise in which funds contributed by a number of persons are combined for the purpose of trading futures contracts or options on futures, or to invest in another commodity pool” .  To conduct business with the public, CPO’s must be registered members of NFA.  Other than registration and abiding by the CFTC rules, there are apparently no special certification exams required to be a CPO.  But

How to become a CLU? – A Chartered Life Underwriter is someone who specializes in life insurance and estate planning.   The official CLU designation is managed by The American College.  The detailed requirements are shown on the American College page.  In general, it requires taking 8 courses (5 required, 3 elective), having 3 years industry experience, adhering to a code of ethics, and take 30 hours of continuing education every 2 years.

How to become a CMT? – A Chartered Market Technician is someone who studies and trades the markets based on a purely technical approach.  The designation is managed by the Market Technicians Association.   Becoming a CMT requires passing 3 technical analysis exams within a 5 year period, and demonstrating 3 years of applicable work experience.

How to become a CEO? -  Seth Godin commented in his book The Dip that “It’s easy to be a CEO.  What’s hard is getting there.  There’s a huge Dip along the way.  If it was easy, there’d be too many people vying for the job and the CEO’s couldn’t get paid as much, could they?”  The larger the organization, the more difficult it will be climbing the ladder to becoming a CEO.  There are no hard and fast rules, but it helps to have an MBA from a top school, be well connected with the leaders of your organization, and possess the personal skills and qualities that are shared by other CEO’s.   If you are serious about rising to the top and becoming a CEO, check out Jeffrey Fox’s book, How to Become CEO: The Rules for Rising to the Top of Any Organization.

How to become a CFO? – A chief financial officer of an organization is a highly paid executive whose main responsibilities are to manage financial risks of the business.  There are no certifications for becoming a CFO, and those that attain this mark have done so by selling themselves into the position, or working their way up the ladder.  According to the Journal of Accountancy website, CFO’s “need need a broad range of skills beyond knowing the ABCs of accounting”.  They also recommend becoming a CPA first, getting a lot of corporate experience, and making your CFO desires known to the CEO. Sam Molinaro, the former CFO of now bankrupt Bear Stearns, and completely derelict in his duties of managing risk, was once quoted as saying “The revenue-generating capacity of this franchise has not been permanently impaired”.  Similar quotes, along with the typical “We are well capitalized” has been the CFO cheer of most financial firms during the financial crisis of 2008 – usually days or weeks before begging for taxpayer funded bailouts.  You want to become a CFO?  Find a blackboard, and write “We are well capitalized!” 10 times, and you are hired.

According to Durangobill’s website, the odds of hitting the mega millions jackpot (all 5 balls, plus mega ball) are 1 in 175,711,536.  The grand prize of the Mega Millions jackpot drawing tonight will be $333 million, with an after tax payout of approximately $210 million, according to this site.  On top of that, there are numerous other potential prizes that a $1 ticket holder is entitled to, ranging in value from $2 to $250,000.  Even with the IRS taking roughly one third of the jackpot, the number of combinations in the final jackpot (175 million) is about 16-17% less than the after tax total payout of $210 million.  And that does not take into consideration any of the additional non mega jackpot award amounts.  With positive expectations like that, it may be time to skip that $8 lunch today and buy 8 mega millions tickets instead.  Good Luck!

Here’s a personal finance tip that I’ve used occasionally with great success.  If you are the “do it yourself” type, but just need a little guidance, look no further than your friendly neighborhood youtube.   There are tons of free instructional videos of varying quality that will teach you how to fix your car, fix your bike, cook dinner, fix a leaky faucet and much, much more.  Here is a sampling of some of the short and sweet videos I have learned and practiced from over the last few months:

• How to cook green thai curry
• How to change your fuel filter
• How to unlock your iphone 3G with free ultrasnow software
• Adjusting your bike brakes

Also check out:

• Covered Calls – Scottrade, Tradeking, Fidelity
• The United States Has Not Had A Balanced Budget Since 1957!
• Free tax help from the IRS – IRS is your friend
• Free technical analysis stock screens
• Iron condor traders can make 25 percent per month

Like many cable consumers in the Great Northwest, I recently switched from Comcast cable and Internet to the Verizon offering.  It’s not because I like Verizon FIOS better or think it is a better technology.  In fact, at the time I switched I still had bad feelings about Verizon in general.  But this was mainly due to all the increased traffic they have caused in the last year from ripping up the roads in my neighborhood for the new fiber optic cables.

The reason I switched was simple.  My Comcast bill was averaging over $140 per month and Verizon FIOS had a very similar package for only $79 per month.  Prior to switching, I had called Comcast and asked them to match the FIOS price; their response was “Sorry, but No”.

It’s been a few months since switching, and as expected, the service offerings and quality are nearly identical.  But I do get a surprise mailing from Comcast at least once per month begging me to switch back.  Here is their offer:

• $99 per month triple play – cable, Internet and phone
• Free HD-DVR for 12 months
• Free Starz subscription for 12 months
• Free Installation
• Free Upgrade to Blast (Higher speed Internet)
• $200 Gift Check to “spend any way I wish” – I would have to spend it on the Verizon termination fee of course, something that could have been avoided if Comcast would have matched Verizon’s price *BEFORE* I switched.

I don’t care about Blast.  And I definitely don’t want a home phone, even if its free.  From the fine print, the Comcast “free” phone comes with a $29.94 activation charge and an “EMTA” charge of $3 per month.

I tried to reach Comcast to inquire about non-triple-play plans – a plan for just Internet and Cable.  On the first attempt, the 866 number on their promotional mailer failed, and directed me to a new non working telephone number.  I finally got through on the second attempt.  The end result is that for only cable and Internet plus HD-DVR (what I have now with Verizon), the price is $69.95 + $15.95 = $83.90.  It’s only a few dollars more than Verizon, but even more importantly, not worth the hassle of switching back.  And the cable/Internet only plan does not include the extras that the more expensive triple play does.  Comcast’s window to save customers ended before those customers switched.  Lowering prices now, especially to a price higher than the competition, is just pointless.  Good Bye (again) Comcast.

Also See:

• Obama And Fiscal Disaster, Worse Than Bush
• Is The Run On Treasuries Coming Soon?
• VIX – Volatility or Swim wear?
• Prostitution And Sub-Prime Mortgages
• Recession Celebration – Used Digital Cameras on Amazon

Back in September of 2008, money market funds made historic news by “breaking the buck”. These funds which were designed to offer slightly better returns than bank deposits or certificates were showing signs of weakness in the form of capital losses. From a September 17, 2008 marketwatch article:

Money market funds pride themselves on their liquidity and the safety of their investments. All money market shares are priced at $1 — a figure so important to the industry that fund companies take losses to keep the share price from dipping below $1, which is known as breaking the buck.

But with investment losses from repeated bank failures, firms found it to difficult to fight off the losses.  The result was that money markets across the nation were “breaking the buck”.

“They didn’t just break the buck, they shattered it,” said Don Phillips, managing director at investment research firm Morningstar Inc.  This is only the second time that a money market fund’s net asset value has dipped below $1. In 1994, Denver-based Community Bankers U.S. Government Money Market Fund returned 96 cents on the dollar to investors when bad derivatives investments forced it to liquidate.

With the scare of losing money in what was supposed to be safe, investors started withdrawing en masse.  It was then that the government stepped in to guarantee all capital investments in money market funds, but this was a temporary measure.  That temporary guarantee is now set to expire in just two weeks.

Check out this excerpt from the T. Rowe Price Prime Reserve Fund:

Notwithstanding the preceding statements, the T. Rowe Price money market funds are participating in the U.S. Treasury’s Temporary Guarantee Program for Money Market Funds. The Program generally does not guarantee any new investments in the funds made after September 19, 2008, and is scheduled to expire on April 30, 2009.

If you think you are safe from an implosion in your money market, think again!  If you think you have no money market to worry about, think again!  If you have a brokerage account, then you probably have a money market.  Every brokerage treats uninvested cash balances different, but in general they are swept into a money market fund of the brokerage’s choosing.  In some cases, while the default behavior is to sweep the cash into a HIGH RISK MONEY MARKET, account holders can elect to choose only an FDIC insured sweep account instead.

If you are not worried about your cash balances, then you probably just don’t like cash.  If you are worried, then call your brokerage immediately, and demand that your cash be swept to only FDIC insured accounts.

Unless Obama-san passes another emergency money market insurance extention, then you can expect that the “breaking of the buck” will continue in May.  You have been warned!

April 17 update: One reader pointed out that the money market guarantees were recently extended through September 19th.  From the Treasury website:

The U.S. Treasury Department today announced an extension of its temporary Money Market Funds Guarantee Program through September 18, 2009, in order to support ongoing stability in financial markets.  The Program was scheduled to end on April 30, 2009.

As a result of this extension, the temporary guarantee program will continue to provide coverage to shareholders up to the amount held in participating money market funds as of the close of business on September 19, 2008. All money market funds that currently participate in the Program and meet the extension requirements under the Guarantee Agreements are eligible to continue to participate in the Program.  Funds that are not currently participating in the Program are not eligible to participate.

But take careful note of the last sentence above.  It does imply that some funds are not participating in the federal guarantees, so it is probably wise to double check with your broker anyway.  On another note, it does beg the question as to why these emergency guarantees are needed at all.  If the money markets were solvent and safe, there would be no need for emergenecy guarantees!

Also check out:

• Closing DNDN Covered Call With The Delta Effect
• Dumb Money For Kindle Or Paperback
• Portfolio Protection And Adjustments With Stock Option Collars
• Technical Analysis – Simple, Complex, and Black Swan
• Overbought And Oversold Stochastic Indicators
• The United States Has Not Had A Balanced Budget Since 1957!

Have we become a nation obsessed with bank bailouts, and taxpayer funded mortgage subsidies? Or is there hope for the American Dream? According to Barbara Ehrenreich, it’s nearly impossible for anyone to move up from lower to middle class in America. Her book, called Nickel and Dimed, tells the story of how she temporarily gave up her middle class life, and with only $1000 in cash and a laptop computer, started on her quest for $7 per hour jobs to test the waters.  The end result was her conclusion that living check to check on unskilled labor jobs was just to difficult.  Apparently many universities have agreed with her, and allowed her to deliver her pessimistic remarks at graduation ceremonies.  For the full story, check out her book.

Nickel and Dimed: On (Not) Getting By in America by Barbara Ehrenreich

Adam Shepard was one such student who did read her book, but opted to try the challenge himself. He picked a random city, and with only $25 in his pocket, and NO LAPTOP, he started his quest. How did he do? Quite well! He started off living in a homeless shelter, secured himself a low paying job, and within a few months was able to afford a used truck and an apartment. Check out the 20/20 interview of him, where he recounts his story, and even offers a few criticisms of Barbara Ehrenreich’s approach. Apparently, while Adam sacrificed comfort by living in homeless shelter, Barbara was staying in hotels and buying new $40 jeans.

If you like the video, be sure to purchase Adam’s book, entitled Scratch Beginnings.

Scratch Beginnings: Me, $25, and the Search for the American Dream by Adam W. Shepard

After reading the book, then ask yourself – Is the American Dream really dead? Must we continue on our quest to a welfare nation?

With the passage of the new $787 economic stimulus bill comes the side effect of a substantial amount of stimulus scams.  A google search for “government grants” will bring up dozens of sponsored links stating some of the following:

• Let us show you which government grants will pay…
• Receive your $10,000 government stimulus grant in 7 days…
• For just $5.99, let us show you how to claim your free government grant…

Some of the ads even go so far as to warn you against visiting other government grant scam sites.

Do you want to know the truth behind these sites? Pay attention.  There are in fact thousands of government grants and aid packages available.  Some of them you are probably already aware of, such as financial aid packages (loans and grants) for higher education, retirement income (social security), and employment insurance. If you use tax accounting software such as Turbo Tax or Tax Cut, then you have probably been exposed to interview questions that help you file for and receive the earned income tax credit and the child care tax credit.  These are the exact “government grants” and “stimulus checks” that those sites are going to give you information on for a small fee.  But you do not need to pay for such information, because it is available for free on government websites.

Here are just a few government websites (.gov addresses) that offer FREE INFORMATION on all the available government loans, grants, and tax credits available:

• Government Grants, Benefits, and Financial Aid – High level summary of grant and tax credit information by category.
• Grants.gov – Search for specific grants, or browse by category

Any other site that promises information is just after your money!  You will get the same information on the same two websites above in exchange for your money.  Just click on either link above to get the information for FREE.

But if you still INSIST on PAYING for FREE INFORMATION, then just click on and BUY the following book.

If you have a heartbeat, or a dog or cat with one, chances are you have seen dozens (or thousands) of pre-approved credit card offers in the mail.  What criteria do they use to pre-approve you?  Where do they get the information?  And is this really legal?  Can I opt out?  Can I complain?  Can I file a lawsuit?  Read below to find out.

I’m not a lawyer, but I do read, comprehend and speak the english language.  And based on the Fedeal Trade Commission’s Fair Credit Reporting Act, it is readily apparent that pre-screened credit cards are illegal.  There are 11 consumer rights specifically listed in the Fair Credit Reporting Act, including:

• Access to your file is limited. A consumer reporting agency may provide information about
  you only to people with a valid need — usually to consider an application with a creditor,
  insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for
  access.
• You may limit “prescreened” offers of credit and insurance you get based on information
  in your credit report. Unsolicited “prescreened” offers for credit and insurance must include
  a toll-free phone number you can call if you choose to remove your name and address from the
  lists these offers are based on. You may opt-out with the nationwide credit bureaus at
  1-888-5-OPTOUT (1-888-567-8688).
• You may seek damages from violators. If a consumer reporting agency, or, in some cases, a
  user of consumer reports or a furnisher of information to a consumer reporting agency violates
  the FCRA, you may be able to sue in state or federal court.

According to the FTC fact page on “Prescreened Offers“,

Many companies that solicit new credit card accounts and insurance policies use prescreening to identify potential customers for the products they offer. Prescreened offers — sometimes called “preapproved” offers — are based on information in your credit report that indicates you meet criteria set by the offeror. Usually, prescreened solicitations come via mail, but you also may get them in a phone call or in an email.

Prescreening works in one of two ways:

• a creditor or insurer establishes criteria, like a minimum credit score, and asks a consumer reporting company for a list of people in the company’s database who meet the criteria; or
• a creditor or insurer provides a list of potential customers to a consumer reporting company and asks the company to identify people on the list who meet certain criteria.

Is this Legal? – NOT A CHANCE!  The federal credit reporting act specifically mentions in your list of rights that ACCESS TO YOUR FILE IS LIMITED. Access should be granted ONLY for a VALID NEED – To consider  an APPLICATION for credit. By definition, an UNSOLICITED pre-approved credit card offer is NOT a response to an APPLICATION. Therefore, by the consumer rights listed in the fair credit reporting act, unsolicited credit card offers are illegal.  Credit reporting agencies that supply banks and other creditors with consumer lists meeting a threshold criteria are violating the fair credit reporting act.

What can I do about this? -  You essentially have 2 choices:

1. Follow the recommendations of the FTC and request to OPT OUT of receiving such offers.  Dial 1-888-5-OPTOUT (1-888-567-8688) and tell them sto stop.  This does work, and the pre-approved offers will stop.
2. File a complaint with the FTC against the 3 major credit bureaus for violating the fair credit reporting act.  In all likelihood, they will not respond.  Like most enforcement agencies in the government (Bernie Madoff and the SEC), they are asleep at the wheel and have no intention of enforcing the very laws that they wrote.  But if enough consumers complain, it will get their attention.  And if you have the gumption and the financial backing to pursue it, then kick off a class action lawsuit against the 3 credit bureaus for releasing your information (ala pre-approved threshold level) to creditors without your explicit written permission.

Today I attended the Seattle area Get Motivated seminar.  According to their website:

This motivational mega-show packs more inspirational firepower than a stick of dynamite!

The Seattle seminar was held at Key Arena, and nearly all of the 17,500 seats were filled.  In any given year, more than 300,000 people attend.  Upcoming additional cities (Asheville, Tulsa, Nashville) for this all day motivational seminar are only $4.95 per person, or $19 for an entire office.  The list of speakers for the event varies, but past speakers included United States presidents and other World leader, famous entertainers and musicians, business leaders, astronauts, and sports legends.  Today’s event in Seattle included General Colin Powell, Rudolph Giuliani, Suze Orman, Zig Ziglar, Terry Bradshaw, Phil Town and others.

Each of the speakers captivated, motivated, educated and entertained the enormous crowd.  There were numerous giant screen displays spread throughout the arena for those sitting far from the stage. At several points throughout the day, there were short bursts of entertainment (Santana), free prize raffles, and even an audience dance contest.

For such a low admission charge, you would be correct to assume there is also a fair amount of up selling included.  My particular event in Seattle included three speakers that marketed their additional training.  But the crowd saw the value in each of the deeply discounted offers, as I witnessed what must have been at least 60% of the arena crowd sign up.  Most people seemed to sign up for all three opportunities, including:

1. Success Magazine Investor Workshop – two day intensive plus investor toolbox access for only $99
2. Financial Success 2008 – three day real estate workshop for only $49
3. Store Online – one day workshop and Internet store creation software access for only $29

A few notable moments from today’s event:

• General Colin Powell was both entertaining and informative.  He stated what he missed most from his days in office – the private plane.
• Giuliani recounting 911 and the aftermath
• Suze Orman announcing the government has recently hired her to redesign the FDIC program and website.
• Zig Ziglar did a unique co-presentation with his daughter in a question and answer format.
• Earl Mindell, author of over 50 nutrition books, energized the audience with information on how to live an optimum healthy life.

At the conclusion of the day, a final drawing was held for $10,000, and final door prizes (Zig Ziglar motivational DVD and CD set) were given out to everyone as they left the stadium.

Other Geldpress articles you may like:

• Magicjack review – unlimited calling for $20 per year
• Free seminars – Trump, Kiyosaki, Investools, Stores Online
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• Know the index sectors – trading the Russell, Dow and S&P 500
• United States ranks 51 in Nationmaster debt to GDP
• Government bailout reading list for Fraudy and Phony

Congratulations, you beat the casinos at their own game. And it was so easy, anyone could do it. But you didn’t beat them at Blackjack, Roulette, Craps or slot machines. How did you do it? By not going.

That’s right, you Won! Casinos, and shares of casino related companies are suffering in 2008 because you stayed home. Marketwatch reported last week that:

It’s now clear that fewer people are going to Las Vegas — and the ones who do are staying for shorter periods and spending less. In June, according to the Las Vegas Convention and Visitors Authority, volume was off 3.1%, an accelerated slip that finally dragged the year-to-date figure into negative territory, down 0.5% to 19.5 million.

Hotel occupancy was off 2.5% for the month, but it took a lot of discounting to keep the drop that modest as average daily room rates, or ADRs, plunged 16% in June.