The CFP® certification is the most widely recognized credential for comprehensive personal financial planning, requiring education, an exam, experience and a fiduciary commitment when providing financial advice. Other designations such as CFA, ChFC and CPA focus on investments, insurance-based planning or tax. When choosing a fee-only financial planner in Chattanooga, verify credentials directly with the issuing organization.
Issued by the CFP Board. Requires a bachelor's degree, coursework, a comprehensive exam, experience requirements and ongoing ethics standards, including a duty to act as a fiduciary when providing financial advice.
A rigorous investment analysis credential, common among portfolio managers and analysts.
Planning coursework similar in scope to the CFP®, issued by The American College, without a single comprehensive board exam.
CPAs are licensed accountants. The PFS credential is for CPAs who also specialize in personal financial planning.
A designation tells you about training, not how an advisor is paid. Always ask whether the advisor is fee-only and a fiduciary at all times, in addition to checking credentials.
Use the CFP Board's verification tool, the CFA Institute's member directory, state CPA boards and the SEC's Investment Adviser Public Disclosure site.
Hundreds of financial designations exist, and some require little more than a short course. FINRA maintains a public database describing the requirements behind many professional designations. If you see unfamiliar letters, look them up.
The strongest combination for most families is a CFP® professional working at a fee-only registered investment adviser. That pairs planning training and a fiduciary standard with a compensation structure that avoids product commissions.
"Financial advisor" is a general title anyone can use. CFP® is a specific certification with education, exam, experience and ethics requirements.
CFP Board standards require CFP® professionals to act as fiduciaries when providing financial advice to clients.
Search the CFP Board's online verification tool by name.
Looking for a credentialed, fee-only financial planner in Chattanooga? Schedule a free consultation.
This article is for educational purposes only and is not individualized investment, tax or legal advice. Talk with a qualified professional about your specific situation.
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