Designs of Financial Planning Specialties
Find a professional with the CFP® designation if you are looking for a financial advisor for your family. CFP® holders must meet the education, examination, experience, and ethics requirements set by the board. The exam covers a wide range of topics related to insurance, investment, taxes, money planning, and financial planning. However, most of these professionals are experts in only one area. You can learn more about the CFP® designation from the CFP® Board of Standards. Another valuable designation is the Certified Personal Financial Specialist, which can only be achieved by Certified Public Accountants (CPAs).
Retirement Planner Certifications
Many titles indicate that someone may have the required expertise with seniors. However, many of these titles are not considered trustworthy. According to The Wall Street Journal, you will want your financial advisor to hold one of the following titles if you are approaching retirement. These titles are: Retirement Management Analyst (RMA®) created by the Retirement Income Industry Association, the Retirement Income Certified Professional (RICP®) offered through the American College, and the Certified Retirement Consultant (CRC®) created by the International Foundation for Retirement Education.
Investment Management Credentials
Look for someone with the CFA® designation if you are looking for a consultant to manage a portfolio of stocks and bonds. This certification means they must study for many years and have in-depth knowledge of the securities industry due to passing three levels of examinations. Most top jobs in the mutual fund management world are occupied by individuals who hold this designation at a minimum. If you are looking for an advisor to manage a portfolio of mutual funds or to identify key advisors for parts of your portfolio, the CIMA designation may be the right choice. CIMA stands for Certified Investment Management Analyst®. This certification requires expertise in statistics, finance, economics, specialized markets, portfolio theory, and behavioral finance. It focuses on selecting portfolio managers to build diversified portfolios.
Insurance Specialists
You may not need someone with a high level of expertise in estimating or advanced knowledge because the reason the price of one insurance product differs from another. However, many planners use insurance as a means for risk transfer or tax planning. It makes sense to know your professional’s background in this area. Many of these professionals hold the Certified Financial Insurance Consultant® or ChFC® designation. Most ChFC professionals spend about 400 hours obtaining this designation. They must complete 30 hours of continuing education every two years to maintain it. This methodology covers topics such as financial planning, income tax, and retirement planning.
Additional Resources
Financial advisors can obtain many other certifications. However, many do not require strict standards. They are designed merely to help a person add letters after their name. Always check the credentials of financial advisors and their complaint history before hiring them.
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Source: https://www.thebalancemoney.com/which-financial-advisor-credentials-should-you-look-for-2388435
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