A comprehensive program like the CFP certification is the best place for financial professionals to begin their financial planning journey. Even as pressure mounts for advisors to specialize, it is important to focus on gaining a broad, foundational understanding through the CFP certification first. Over time, advisors can eventually specialize and receive a retirement income or divorce designations, for example. However, an advisor with a designation tailored specifically to retirement income can't effectively plan their client’s retirement unless they know how it affects other areas of the client’s financial plan. To offer an analogy: If someone wants to become an anesthesiologist, they don't go to anesthesiology school, they go to medical school to learn how each part of the body interacts with the others. They later become board certified in anesthesiology. In that same vein, if an advisor aims to become an estate planning specialist, they can first become a certified financial planner and learn how each part of a client’s financial situation intersects and then they can pursue a designation that concentrates on estate planning.
Standing Out: How Firms Can Differentiate Themselves Through Designation Strategy
At the heart of the designation strategy lies a belief that firms should align their organizational values with the skills and experience of their financial planners. Therefore, firms must equip their advisors with the competencies needed to succeed at financial planning and make clear through their website, social media platforms and other presences that their purpose is to help clients prepare for the future.
Success in the current marketplace relies on differentiation. We’re seeing increased demand from advisors for meaningful credentials like CFP certification because it helps them become better financial planners, and thus more attractive to potential clients and firms. Additionally, financial planning leaders are looking to give their new, fresh-faced advisors credibility in the profession, while educating and training them to embody the value of the certification. We see firms thoroughly investigating the qualifications and rigor that the certification entails.
Establishing a designation strategy has become more important than ever before. This will lead to a highly skilled and informed workforce, help secure client trust in a competitive marketplace and ensure advisors always act in the client’s best interest.
In our ever-changing economic landscape, there is no better way to show clients, prospective clients, and strategic partners that they are qualified to provide holistic advice.
Kim Hayes, CFP, is director of corporate relations for the CFP Board. Joe Maugeri, CFP, is managing director of corporate relations for the CFP Board.