A. Here are some of the most widely known financial credentials being advertised by financial advisors today (IRA.com does not endorse any particular designation, and offers this for informational purposes only).

CFA: Chartered Financial Analyst.
Awarded by the Association for Investment Management Research, this technical designation is designed for investment professionals to support the skills required for portfolio management and investment analysis. Candidates for the charter must pass three levels of examination (one exam may be taken per year). Preparation is via self-study of a body of knowledge published by AIMR and includes financial statement analysis, securities regulations, ethics, capital markets, asset allocation, and application of theoretical concepts. Candidates must accrue three years of related experience and establish AIMR membership prior to award of the charter. AIMR does not mandate continuing professional education for maintenance of the CFA charter.

CFP: Certified Financial Planner®.
Awarded by the Certified Financial Planner Board of Standards, this designation is characterized by the CFP board as a license. Candidates must pass a comprehensive 10-hour examination testing the candidate’s knowledge of financial planning, investments, estate planning, tax and retirement planning, and ethics. Preparation for the examination is via five or more educational courses under a curriculum approved by the CFP Board and offered at more than 100 institutions throughout the United States. Candidates must have three years financial planning experience plus an undergraduate degree to qualify for the award of the license (five years without a degree). CFP licensees are required to renew their license every two years through the completion of 60 hours of continuing education.

ChFC: Chartered Financial Consultant.
Awarded by The American College, this designation is based on the completion of eight distance-learning courses offered by the College. Candidates qualify sequentially through separate post-course examinations. Courses, five of which are approved by the CFP Board as preparation for the CFP license, include financial planning, investments, estate planning, tax and retirement planning. Candidates must have two years related business experience plus an undergraduate degree to qualify for award of the ChFC (three years without a degree). Designees who matriculated after June 30, 1989 must renew their designation every two years with the completion of 30 hours of continuing education (designees who began their ChFC studies prior to the 1989 deadline may not be required to prove their attendance at continuing education programs).

CLU: Chartered Life Underwriter.
Awarded by The American College, this designation is based on the completion of eight distance-learning courses offered by the College. Candidates qualify sequentially through separate post-course examinations. Course work emphasizes use and application of life insurance and may encompass life, disability and long-term care insurance, employee group benefits, pensions, and financial, estate, and retirement planning. Candidates must have two years related business experience plus an undergraduate degree to qualify for award of the CLU (three years without a degree). Designees who matriculated after June 30, 1989 must renew their designation every two years with the completion of 30 hours of continuing education (designees who began their CLU studies prior to the 1989 deadline may not be required to prove their attendance at continuing education programs).

CPA: Certified Public Accountant.
Awarded by the 54 U.S. state and territorial boards of accountancy upon the successful completion of four separately scored examinations covering auditing, business law, accounting and reporting on business enterprises, and accounting practices for taxation, managerial, government and nonprofit organizations. CPAs must meet individual state standards for continuing professional education every two years.

CPA/PFS: Personal Financial Specialist.
Awarded by the American Institute of Certified Public Accountants (AICPA) to members who hold a valid CPA license, have passed an examination, and who have completed 750 hours of financial planning practice within the previous three years. Renewal requires annual maintenance of the CPA and membership in AICPA, completion of 72 hours of continuing professional education every three years and 750 hours of practice in financial planning every three years. Practice may include personal financial planning process, personal income tax planning, risk management planning, investment planning, and retirement planning.

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