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There are many financial advisor designations. We review some of them here to help you make an informed selection of your retirement planner. While much of the financial services industry in America is focused on helping people save for retirement (i.e. serving the baby boomers), the CRFA™ is the only designation focused solely on the financial issues of people already retired or ready to retire.
Stockbrokers or Financial Planners
have passed an exam given by the National Association of Securities
Dealers. This is not a government organization. The exams (series
7 is the general securities exam) tests basic knowledge about
stocks, mutual funds, bonds, financial markets and regulations.
It does not prepare an individual to actually handle finances
or provide recommendations and tests only their technical understanding
of the areas mentioned.
Registered Investment Advisors
Licensed either by their State of Securities
and Exchange Commissions. rather than charging commissions, these
advisors charge fees for their time or for money management services.
In most cases, they are required to pass the series 7 exam mentioned
above and file detailed information about their background (form
ADV).
ChFC®—Chartered Financial Consultant
Insurance professionals that have completed an eight-course
program of study and passed an exam. The ChFC program focuses
on the comprehensive financial planning process as an organized
way to collect and analyze information on a client's total financial
situation, to identify and establish specific financial goals,
and to formulate, implement, and monitor a comprehensive plan
to achieve those goals. The ChFC program provides financial planners
and others in the financial services industry with in-depth knowledge
of the skills needed to perform comprehensive financial planning
for their clients. Students also must meet specified experience
requirements, maintain ethical standards, and agree to comply
with both The American College's Code of Ethics and Procedures
and applicable continuing education requirements.
CFP®—Certified Financial Planner ™
Have completed 5 courses and passed a comprehensive exam. These
individuals have met CFP Board’s education, examination
and experience requirements, have agreed to adhere to high standards
of ethical conduct and who complete CFP
Board’s biennial certification requirements, including
continuing education, to use the certification marks CFP®,
CERTIFIED FINANCIAL PLANNER™ and . The CFP® board is
not a governmental organization. These certificants have completed
coursework and exam designed to test their practical application,
not just theoretical knowledge, of personal financial issues.
CLU®—Chartered Life Underwriter
Insurance professionals that have completed an eight-course
program of study and passed an exam. The CLU program provides
insights into the life insurance business, its importance to
the economy, its operation and distribution systems, and its
resurgent importance for safe and secure investments. Students
also must meet specified experience requirements, maintain ethical
standards, and agree to comply with both The American College's
Code of Ethics and Procedures and applicable continuing education
requirements.
Required courses include:
- Insurance and Financial Planning*
- Individual Life Insurance
- Life Insurance Law
- Fundamentals of Estate Planning
- Planning for Business Owners and Professionals
CRFA™—Certified Retirement Financial Advisor ™
Graduates are generally experienced financial
planners who desired to get a focused education in financial
issues of special concern to retirees. This is the only designation
focused on financial issues facing retirees. CRFA™ graduates complete
a four-day
program, pass a closed-book final exam and must obtain 15
hours of continuing education annually. Topics studied: 1) how
to structure retiree portfolios for increased income, less risk
and reduced taxes 2) how retirees make financial decisions and
skills for presenting to retirees 3) estate and long term health
planning 4) tax issues specifically affecting retirees 5) asset
protection.
CSA—Certified Senior Advisor
This is not a credential focused on financial
issues but a much broader array of senior issues. Attendees may
be financial professionals as well as nurses, caregivers, gerontologists,
elder law attorneys, etc and others serving seniors. Topics studied
include: TRENDS IN AGING, PRINCIPLES OF AGING, SOCIAL ASPECTS
OF AGING, ALZHEIMER'S AND DEMENTIA, CHRONIC ILLNESS IN SENIORS,
FINANCIAL PLANNING, ESTATE PLANNING, SOCIAL SECURITY, END-OF-LIFE
PLANNING, SENIOR SPIRITUALITY, MEDICAID PLANNING, TAX PLANNING,
SENIOR HOUSING, LONG-TERM CARE, RESOURCES FOR SENIORS, MARKETING
TO SENIORS. CSA holders attend a 3-day class and pass an exam
and complete annual continuing education.
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