Titles and credentials

Some advisors are specialists—accountants and tax lawyers, for example. Others are generalists offering overall financial management.

General terms such as "financial planner" and "financial consultant" don't guarantee that a person has passed a qualifying exam or is experienced in a particular field. When you interview financial advisors, you'll want to ask about their credentials and ongoing education.

Certified Financial Planner (CFP)

This credential is conferred by the Certified Financial Planner Board of Standards. Professionals earn a CFP by:

• Completing a course of study that takes 1-2 years.
• Passing a 2-day, 10-hour exam.
• Working at least 3 years in financial planning.
• Completing 30 hours of continuing education every 2 years for recertification.

CFPs provide advice on a variety of financial needs, including taxes, investments, insurance, retirement and estate planning.

Chartered Financial Analyst (CFA)

This credential is conferred by the Chartered Financial Analyst (CFA) Institute. Professionals earn a CFA by:

• Completing independent study of 11 topics, including economic analysis, accounting, quantitative techniques and portfolio management.
• Passing 3 rigorous exams.
• Working at least 3 years in the investment industry.

CFAs are specialists in securities analysis and professional money management.

Chartered Financial Consultant (ChFC)

This credential is conferred by The American College of Bryn Mawr, Pennsylvania. Professionals earn a ChFC by:

• Completing an 8-course curriculum.
• Working at least 3 years in the financial services field.

ChFCs provide advice on a variety of financial needs, including taxes, investments, insurance, retirement and estate planning.

Personal Financial Specialist (PFS)

This title is conferred by the American Institute of Certified Public Accountants (AICPA) on members who also:

• Pass a comprehensive exam.
• Work in the financial planning field for 3 years.
• Complete 72 hours of continuing education every 3 years for recertification.

A PFS provides advice on a variety of financial planning topics, including taxes, risk management, investments, insurance, retirement and estate planning.

Registered Investment Adviser (RIA)

This registration indicates that the individual, or their employer, has received a license to give investment advice from the Securities and Exchange Commission (SEC) or a state securities commission. An RIA may provide investment advice without being licensed to buy and sell securities.

RIAs comply with the additional fiduciary responsibilities mandated by the Investment Advisers Act of 1940, under which fiduciaries are held to a high standard of care and professional responsibility.

Registered Representative

Series 6 and 7 licenses are conferred by the National Association of Securities Dealers (NASD), a self-regulating body of the securities industry. Professionals become Registered Representatives (also called financial consultants, financial advisors and securities brokers) by:

• Completing an independent course of study.
• Passing a one-day examination (Series 7) or half-day examination (Series 6).
• Meeting a continuing education requirement.

Registered Representatives of a broker/dealer firm often provide investment advice incidental to broker/dealer services. They can recommend investments, such as stocks, bonds, mutual funds and annuities, as well as execute the transactions that implement their recommendations.