The Top Designations for Financial Advisors Explained

Different advisors have different specialities and there are a wide range of areas an advisor might have experience in. While some designations serve as essential qualifications, others highlight areas of deeper expertise an advisor might have. Keep in mind an advisors work goes deeper then their designations and license. Many advisors have experience dealing with situations that don’t come with a designation and can only come from experience. Designations are a great baseline but always ensure the advisor you work with has other clients like you so you can be confident they’ve solved the problems you’ll need solving.

Here are some common designations along with what they indicate and their respective websites where you can dig in further:

• Certified Financial Planner (CFP®)– This designation is one of the most respected in the industry. CFPs have extensive training in financial planning, tax planning, estate planning, and investment management. They must pass a rigorous exam and adhere to ethical standards to earn and keep their designation.
• Chartered Financial Analyst (CFA)– These are investment management professionals with expertise in financial analysis, portfolio management, and ethical standards. They must complete a three-level exam and have relevant work experience.
• Certified Investment Management Analyst (CIMA®)– CIMA professionals specialize in investment consulting, focusing on asset allocation, risk management, and investment performance. The certification is ideal for advisors working with high-net-worth clients.
• Chartered Financial Consultant (ChFC®)– a designation similar to the CFP but requires additional courses in specialized areas like estate planning and financial planning for special needs. It’s often pursued by professionals focused on comprehensive financial planning.
• Certified Public Accountant (CPA)– CPAs are accounting professionals certified to provide financial and tax planning advice. When it comes to financial advisors, along with a CPA, you’ll commonly see a PFS. When a CPA specializes in personal finance, they can also earn the Personal Financial Specialist (PFS) credential.
• Behavioral Financial Advisor (BFA™)– BFAs focus on the psychological aspects of financial planning, helping clients make better financial decisions by understanding their behaviors and emotions.
• Chartered Retirement Planning Counselor (CRPC®)– The CRPC focuses on retirement planning, including income management, asset management, and estate considerations. It’s suitable for advisors helping clients transition into retirement.
• Retirement Income Certified Professional (RICP®)– The RICP designation prepares advisors to create sustainable retirement income strategies, helping clients manage their income streams effectively in retirement.
• Accredited Investment Fiduciary (AIF®)– AIF designees are trained to act as fiduciaries, meaning they must always act in the best interests of their clients. They specialize in investment management and adhering to a strict fiduciary standard.
• Certified Wealth Strategist (CWS®)– The CWS designation focuses on comprehensive wealth management, including investment planning, retirement, and legacy planning. It’s ideal for advisors working with affluent clients. Learn more at
• Chartered Life Underwriter (CLU®)– The CLU is the gold standard for life insurance professionals. It covers life insurance products, estate planning, and risk management. Learn More at
• Certified Divorce Financial Analyst (CDFA®)– CDFAs specialize in helping clients navigate the financial complexities of divorce, such as dividing assets and understanding tax implications. Learn more at
• Certified Exit Planning Advisor (CEPA®)– CEPAs specialize in exit planning for business owners, helping them develop strategies for selling or transitioning their business. Learn More at
• Chartered Alternative Investment Analyst (CAIA®)– CAIAs focus on alternative investments, such as hedge funds, real estate, and private equity. This designation is ideal for advisors specializing in non-traditional investment strategies.
• Wealth Management Certified Professional (WMCP®)– WMCP professionals specialize in wealth management, focusing on investment strategies, risk management, and estate planning for high-net-worth individuals. Learn More at
• Certified Plan Fiduciary Advisor (CPFA®)– The CPFA designation is for advisors who work with retirement plans, ensuring they adhere to fiduciary standards and help plan sponsors manage their duties.

Understanding these designations can help you choose a financial advisor who meets your specific needs. Be sure to ask about an advisor’s designations and what they mean for their practice. For further resources, you can visit the advisor’s professional organization’s website to verify their credentials and learn more about their qualifications.