CREDENTIALS and DESIGNATIONS
There are more than 100 professional designations in the financial planning industry, but only a few of them truly indicate a professional’s ability to do real broadbased financial planning. All of those fancy letters after a planner’s name may be significant, or they may just be a way of making the advisor sound more competent than he or she really is.
NAPFA suggests looking for financial advisors who have one or more of the following:
• Certified Financial Planner® (CFP®)
• Personal Financial Specialist (CPA/PFS) – granted to CPAs who meet necessary requirements
• Chartered Financial Analyst (CFA) – granted to CFAs who pass 3 rigorous exams over several years.
NAPFA accepts both the CFP and CPA/PFS credentials as meeting its requirement for a broad based education in financial planning.