Should You Care About a Financial Advisor’s Credentials?
Surprisingly, you don’t need a college degree to become a financial advisor. If a firm hires you and you pass a FINRA securities exam (like the Series 7, Series 63, or Series 65), you can start working with clients. No designations required.
That low barrier to entry often catches people off guard — and it’s exactly why credentials and experience matter so much when choosing someone to trust with your finances.
What Sets CFP® Professionals Apart?
One of the most recognized and respected designations is the CERTIFIED FINANCIAL PLANNER™ (CFP®). Only about 30% of financial advisors hold this certification - around 100,000 individuals.
To become a CFP®, an advisor must:
- Hold a bachelor’s degree
- Complete 9–18 months of financial planning coursework
- Pass a comprehensive exam covering:
- Insurance
- Investments
- Retirement
- Estate planning
- Tax planning
- Psychology of financial planning
- Have 2–3 years of relevant experience
- Commit to the CFP Board’s Code of Ethics
CFP® professionals are trained to take a personalized, holistic approach to planning - helping clients with investments, retirement, insurance, equity compensation, estate strategies, and more.
Other Common Financial Designations (And What They Mean)
Here’s a breakdown of some other designations you might come across — and what they signal about a financial advisor’s expertise:
📊 CFA® – Chartered Financial Analyst
- Known for deep knowledge in investment analysis, portfolio management, and financial theory
- Requires passing 3 extremely difficult exams
- Must have 3+ years of work experience and reference letters
- ~190,000 charterholders worldwide
Often found in institutional investment roles but some are in financial planning
💼 ChFC® – Chartered Financial Consultant
- Similar in scope to CFP®, with a focus on financial planning topics such as investments, insurance, taxes and estate planning.
- Requires coursework and 3 years of industry experience
💰 CFS – Certified Fund Specialist
- Focuses on mutual funds, portfolio theory, and client fund recommendations
- Useful if your advisor builds portfolios or trades on your behalf
👨👩👧👦 CPWA® – Certified Private Wealth Advisor
- Specializes in high-net-worth clients
- Covers topics like hedge funds, estate planning, business succession, and multigenerational wealth
🧠 CIMA® – Certified Investment Management Analyst
- Focuses on portfolio construction, asset allocation, and investment manager selection
🎓 MSFP or MSFS – Master’s in Financial Planning
- An advanced, master's degree in financial planning
- Goes deeper than most designation programs
📜 AEP® – Accredited Estate Planner
- Specialized in advanced estate planning and wealth transfer strategies.
💰 RICP® – Retirement Income Certified Professional
- Focuses on helping retirees generate sustainable income throughout retirement.
- Knowledgeable in Social Security, pensions, annuities, and investment withdrawal strategies.
💼 CPA – Certified Public Accountant
- Expertise in accounting, tax preparation, and audits for individuals and businesses.
- Licensed to represent clients before the IRS and often handles complex tax situations.
🧾 EA – Enrolled Agent (IRS)
- Federally authorized tax professional specializing in IRS tax code and representation.
- Can file tax returns and represent clients before the IRS in tax disputes or audits.
🛡 CLU® – Chartered Life Underwriter
- Specializes in life insurance and risk management strategies.
- Helps individuals and families protect income and transfer wealth efficiently.
💔⚖️ CDFA® – Certified Divorce Financial Analyst
- Trained to analyze the financial impact of divorce decisions.
- Assists clients and attorneys with fair division of assets, alimony, and post-divorce planning.
🏁 CExP™ – Certified Exit Planner
- Helps business owners plan and execute exits or sales of their companies.
- Covering topics like succession planning, valuation, tax implications, and wealth transition.
🎓 Certified Student Loan Professional™ (CSLP®)
- Focuses on student loan planning - particularly navigating complex federal repayment programs.
- Navigating Public Service Loan Forgiveness (PSLF), Income-Driven Repayment (IDR) plans, Private vs. federal loan strategies, Married filing strategies for borrowers, and more.
💡 Final Thoughts
You don’t need a degree to become a financial advisor — but if you’re looking for comprehensive, personalized, and ethical financial guidance, designations do matter. However, it should be a small part when evaluating financial advisors.
Look for advisors who:
- Have advanced credentials (like CFP®, CFA®, CPA)
- Have experience and planning skills that match your specific needs
Your finances are too important to leave to chance — or to someone who just passed an exam last month.
👀 What Caught My Eye
Jeff Bezos, founder of Amazon, sold nearly $8.5 billion worth of Amazon stock in the first half of 2024. Why in the first half of 2024? He moved from Seattle, Washington (which has a 7% capital gains tax) to Miami, Florida in November 2023, which has no state income or capital gains tax.
The result? His move saved him an estimated $600 million in taxes - just from the timing and state of residence for income tax purposes.
Smart planning can make a big difference.
“Spend each day trying to be a little wiser than you were when you woke up. Day by day, and at the end of the day — if you live long enough — like most people, you will get out of life what you deserve.” - Charlie Munger
Ready to Take Off?
📩 Have a financial question? Visit The Financial Takeoff and our Ask a Question page.
🚀 Want to explore working together? Schedule your Initial Collaboration meeting to see what’s possible with your financial planning. We look forward to meeting you!
Life is short and time is precious. Thanks for taking yours to read this and I hope to be a part of your Financial Takeoff!
Disclaimer: This is just for informational purposes and should not be used or viewed as tax, legal, or financial advice. Work with your tax professional, legal professional, and financial planner to evaluate which strategies would be the best for your situation.
