How Strong Mathematical Skills Help Build A Successful Career In Financial Planning

Most people know that mathematical skills are definitely required in financial planning. However, most do not realize how in depth this can go.

On the basic level, financial planning boils down to simple budgeting so as to create extra cash flow for investment. For people with strong mathematical skills, they’ve the added advantage of wealth building, since they’ve a better grasp of complex analyses, and comprehend easily advanced investment instruments. On the other hand, those who don’t have strong mathematical skills may struggle to recall numbers, recognize investment patterns, or keep proper records for future references.

Whilst this doesn’t guarantee results in volatile investment markets, a Financial Planner with strong mathematical skills can offer more precise advice on how to put your best foot forward, and significantly increase the chances of investment success. You may not be an expert mathematician, or be highly skilled in marketing or sales, but you do have a niche when it comes to delivering excellent investment results for your clients.

1. Budgeting

As mentioned above, this is where simpler mathematical skills apply. A Financial Planner needs to ensure that clients have positive cash flow by spending less than their incomes. He or she also needs to assist clients to make provisions for future eventualities and any unexpected costs that may arise. Once those financial loopholes are covered, they can begin wealth accumulation by starting an investment portfolio.

While working through clients’ financial standing, a Financial Planner needs to develop a recognition for matters that may seem a little off. For example, he or she should be able to tell when an income-to-rent ratio is unhealthy, or when a client’s spending habits are out of balance.

2. Instinctual Wealth Building

This might be a bit surprising to some, but people with strong math skills and the ability to recognize patterns and recall past math problems, are more likely to be wealthy in life. A study by the RAND Corporation found that people with strong mathematical skills and good recall memory were almost 850% more likely to be wealthy, as compared to those without such capabilities. The study showed that households, where both decision makers have higher proficiencies, have displayed the largest gains in net worth.

While the study did not make clear the reasons for this, it goes to show that an ability to recognize and remember patterns and trends, and then acting accordingly, would make a key difference. Good mathematical skills play a big role and put a Financial Planner in a better position to help their clients gain wealth.

3. Evaluating Investment Opportunities

Advanced mathematical formulas are used to evaluate investment instruments. It can be put to good use when evaluating risks and plotting potential returns. Based on each client’s level of risk tolerance, a Financial Planner can make comparison between different investment opportunities and work out the best option.

In many ways, these important investment decisions could boil down solely to mathematics, eliminating the emotional and human factors. When combined with the training provided to a Financial Planner, this becomes a powerful tool to help clients preserve and accumulate wealth.


There are many paths that can lead to becoming a successful Financial Planner. It shouldn’t be ruled out for anyone just because one doesn’t have much financial experience, or see themselves lacking in certain skills. In fact, a Financial Planner with strong mathematical skills will likely succeed, as clients’ great investment results will bring forth strong word of mouth and solidify a good reputation.


Jamson Chia graduated from The National University of Singapore in 2003 with Bachelor of Engineering (Hons). Possessing an interest in financial planning, he furthered his education, and obtained the prestigious title of a Certified Financial Planner (CFPCM) in 2007. He is also one of the few privileged advisors in his company to attain the Business Insurance title.

Jamson currently heads the team as an Financial Services Director, where he is responsible for providing quality service and advice, especially in the Small and Medium Enterprises and High Net Worth Market. He is also responsible for grooming new talents, where he holds an impressive track record. Various consultants under his training have qualified for numerous awards ranging from AIA’s Million Dollar Club, to the highly acclaimed international Million Dollar Round Table (MDRT) award.

Within the first 5 years of his career, Jamson has achieved an admirable feat of being a member of the Million Dollar Round Table for 3 consecutive years, and he is currently one of the youngest directors in AIA.

Jamson is a Financial Services Director with AIA. The statements or opinions expressed on this site are his own, and do not represent those of AIA.

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