nths and months of study and show that the advisor is committed to the profession and their personal ongoing education. It is also less likely that an advisor with one of these designations is inexperienced and new to the field.

The Certified Financial Planner™ designation shows education on all aspects of financial planning. It requires the completion of 5 courses dealing with investments, i

Selecting a financial advisor is one of the most important decisions you will make–especially if that advisor will be involved in decisions affecting your retirement nest egg. One factor most people consider is the advisor’s designations. The three most common designations are the Certified Financial Planner™ (CFP®), Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC), but there are many others. These designations are designed to give you the impression that one advisor is more qualified than another and thus a better choice for you. But is that true? Read on as I reveal the hidden truth behind these confusing designations.

Although designations are important, there are other aspects that I believe are even more critical. These include how an advisor is compensated, whether or not they are required to act in your best interest, the type of products/investments they have access to and their money management style. (Other articles in the Secrets To Choosing A Financial Advisor deal with these other topics and can be found under the article archives at www.guardingyourwealth.com.)

Terms like insurance agent, registered representative and registered investment advisor relate to how an advisor is licensed with the state or SEC. Designations like CFP®, CLU and ChFC describe education and training beyond the basics required to be licensed. Adding to the confusion, there isn’t any correlation between how an advisor is licensed and the designations he/she may have.

Any advisor you chose should probably have one of these designations. They require months and months of study and show that the advisor is committed to the profession and their personal ongoing education. It is also less likely that an advisor with one of these designations is inexperienced and new to the field.

The Certified Financial Planner™ designation shows education on all aspects of financial planning. It requires the completion of 5 courses dealing with investments, in

are many others. These designations are designed to give you the impression that one advisor is more qualified than another and thus a better choice for you. But is that true? Read on as I reveal the hidden truth behind these confusing designations.

Although designations are important, there are other aspects that I believe are even more critical. These include how an advisor is compensated, whether or not they are required to act in your best interest, the type of products/investments they have access to and their money management style. (Other articles in the Secrets To Choosing A Financial Advisor deal with these other topics and can be found under the article archives at www.guardingyourwealth.com.)

Terms like insurance agent, registered representative and registered investment advisor relate to how an advisor is licensed with the state or SEC. Designations like CFP®, CLU and ChFC describe education and training beyond the basics required to be licensed. Adding to the confusion, there isn’t any correlation between how an advisor is licensed and the designations he/she may have.

Any advisor you chose should probably have one of these designations. They require months and months of study and show that the advisor is committed to the profession and their personal ongoing education. It is also less likely that an advisor with one of these designations is inexperienced and new to the field.

The Certified Financial Planner™ designation shows education on all aspects of financial planning. It requires the completion of 5 courses dealing with investments, i

whether or not they are required to act in your best interest, the type of products/investments they have access to and their money management style. (Other articles in the Secrets To Choosing A Financial Advisor deal with these other topics and can be found under the article archives at www.guardingyourwealth.com.)

Terms like insurance agent, registered representative and registered investment advisor relate to how an advisor is licensed with the state or SEC. Designations like CFP®, CLU and ChFC describe education and training beyond the basics required to be licensed. Adding to the confusion, there isn’t any correlation between how an advisor is licensed and the designations he/she may have.

Any advisor you chose should probably have one of these designations. They require months and months of study and show that the advisor is committed to the profession and their personal ongoing education. It is also less likely that an advisor with one of these designations is inexperienced and new to the field.

The Certified Financial Planner™ designation shows education on all aspects of financial planning. It requires the completion of 5 courses dealing with investments, i

ent advisor relate to how an advisor is licensed with the state or SEC. Designations like CFP®, CLU and ChFC describe education and training beyond the basics required to be licensed. Adding to the confusion, there isn’t any correlation between how an advisor is licensed and the designations he/she may have.

Any advisor you chose should probably have one of these designations. They require months and months of study and show that the advisor is committed to the profession and their personal ongoing education. It is also less likely that an advisor with one of these designations is inexperienced and new to the field.

The Certified Financial Planner™ designation shows education on all aspects of financial planning. It requires the completion of 5 courses dealing with investments, i

nths and months of study and show that the advisor is committed to the profession and their personal ongoing education. It is also less likely that an advisor with one of these designations is inexperienced and new to the field.

The Certified Financial Planner™ designation shows education on all aspects of financial planning. It requires the completion of 5 courses dealing with investments, insurance, taxation, estate and retirement planning. After a test on each course is passed, there is a comprehensive 8 hour exam covering not only the grasp of the relevant facts, but the ability to apply those facts correctly in real life situations. The pass rate on the CFP® exam is around 50% and the CFP® designation requires three years of related work experience.

The Chartered Financial Consultant designation is similar to the CFP® designation in that it teaches the fundamentals of financial planning. The Chartered Life Underwriter designation provides an advisor in-depth knowledge of the life insurance business. They both require the completion (and testing) of 8 courses similar to those that must be passed for the CFP® designation. Unlike the CFP® designation, the ChFC and CLU designations do not require a comprehensive test after all the courses have been completed.

Which designation is better? It depends on what you need in an advisor. If you have a situation requiring the advanced use of life insurance then the CLU designation can be important. For instance, maybe you are a small business owner needing to use insurance to fund a buy/sell arrangement with your partners.

If you want an advisor who has a broad understanding of all areas affecting your financial health, the CFP® and the ChFC designations are important. Those advisors have the knowledge to provide help with budgeting, structuring a diversified investment portfolio and helping you with retirement, insurance and estate planning.

Other designations, such as the Certified Senior Advisor (