Financial planning is desperate for talent: One guru is helping Rowan build an on ramp

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It’s a business plan competition question that hundreds of thousands of business students across the country seemingly cannot easily answer.

With so many students wanting to go into business world — and seemingly wanting to do so to make money — why aren’t more studying to become certified financial planners, a lucrative profession that is in desperate need of new talent?

There are two good answers:

1. The great majority of Americans do not use a financial planner and do not understand the profession, therefore they don’t necessarily push their own kids in that direction;
2. Very few universities have courses — let alone degrees — in financial planning, so there isn’t necessarily an on ramp to the career once they get to school.

That’s all changing.

This morning, Rowan University announced it will open a School of Financial Planning, thanks to a $10 million gift from Ric and Jean Edelman, the co-founders of Edelman Financial Engines.

For Ric Edelman, a legendary figure in financial planning, it’s a chance to have an even bigger impact in the profession, one that is losing far more professionals to retirement each year than it is adding.

“We’re very excited about this,” he said. “It’s not merely a terrific career opportunity for today’s college students, but it’s a tremendous need for America.

“We are facing a retirement readiness crisis in this country, as too few Americans enter retirement with sufficient money. And a large part of the reason why that is, is because of a lack of access to effective financial advice. There are too few financial advisors in the country relative to the number of Americans who need their help.

“So, we have an acute problem that we need to address, and there are too few colleges in this country that are offering degrees in financial planning, which is why it’s such a rare choice among college students for their careers.”

In fact, fewer than 200 U.S. colleges offer financial planning degrees, compared with nearly 1,500 offering business degrees.

The new school at Rowan, which aims to begin this fall, will be created within William G. Rohrer College of Business as part of the accredited business education program. The school is developing curricula to offer a bachelor’s degree major and minor, as well as a master’s degree, certificate programs and executive education programs.

But first, Edelman said, it’s about spreading the word that this profession exists. He said he understands the challenges – and why they exist.

“Less than 20% of US households have a written financial plan,” he said. “Most American adults are financially illiterate. Less than half of US adults are able to get half the questions right on a financial literacy quiz. So, if mom and dad don’t know anything about money, if mom and dad are themselves not doing well with their own personal finances, it’s not a conversation they’re going to have at the dinner table with their kids.”

That general perception extends everywhere. Kids, he said, have heard about Wall Street and investment banking, but not financial planning.

Which means they also don’t know this: How much good the profession does?

Edelman doesn’t shy away from the fact that it is a lucrative field. But it also is one that does lots of good for lots of people. And not just the rich ones.

“The vast majority of Americans aren’t wealthy, they’re struggling to achieve financial security and there aren’t as many outlets available to them for the help and service and advice that they need,” he said. “When Jean and I created our firm back in 1986, 40 years ago, we focused our practice on serving those who didn’t have a lot of money, but who had the desire to achieve financial independence. That remains the firm’s focus today, serving people who are otherwise ignored by the Wall Street machine.

“We really are changing people’s lives, helping families send children to college who otherwise wouldn’t be able to afford to go, buy homes that they couldn’t be able to afford to buy, achieve financial security to care for aging parents and secure their own retirement while supporting their children and grandchildren.”

Matthew Sarkees, the dean of Rohrer College of Business, said that pay-if-forward mentality can play out in many ways, noting a third of Rowan’s enrollment are first-generation students.

“We have a lot of students who are coming, and they’re looking for alternatives, not just to be financial planners for clients that they haven’t met yet, but for their families,” he said. “We have students who are taking the knowledge that they’ve gained here back to their families and sharing that in an intergenerational way.

“We believe that this is going to be a very unique ecosystem.”

Led by one of the best.

Edelman, who will serve as the founding head of the school, is as good as there is in the profession.

He was named the nation’s #1 Independent Financial Advisor three times by Barron’s, is in its Hall of Fame, and is recipient of three lifetime achievement awards.

Edelman said he’s ready to pass along his knowledge.

“I’m super grateful to the leadership at Edelman Financial Engines, led by (CEO) Ralph Haberli, to put their support behind this program, so it makes a massive difference, not just for the students, but for the communities,” he said.