Deciphering the profession's alphabet soup

There are so many designations and certifications for financial professionals that figuring out what kind is best for you can be very daunting.

FINRA, the private-sector body that oversees securities dealers, lists nearly 60 "Investment Advisor Designations"  complete with educational requirements and issuing body on its web site.  You can weed out at least some of them by knowing what services you need.

Unless you're planning a divorce, a Certified Divorce Financial Analyst (CDFA) or Certified Divorce Specialist (CDS) probably isn't for you.  You won't consult a Certified College Planning Specialist (CCPS) if you don't have children.

Some designations require more education, training, and experience than others. The Chartered Financial Analyst (CFA), Certified Financial Planner (CFP) and Certified Public Accountant (CPA), for example, each have substantial prerequisites for work experience and education, followed by program-specific courses and exams.

Some other designations, however, require only a self-study course and an exam.  Watch out, too, for acronyms that sound alike but represent very different preparation. A Registered Financial Associate (RFA) needs a college degree in financial planning, while a Registered Financial Consultant (RFC) needs a CFA, CFP, or one of several other professional designations or an advanced degree, plus four years of experience as a financial planner. A Registered Financial Planner (RFP) needs only two years of experience and a 70-hour self-study course. 

But it's not just the acronym that matters, it's the individual. What you really want is someone who can provide the services you need and understands your goals. Some financial professionals handle only a few investment products; others specialize in only a few areas. Think about what services are appropriate for your situation. Some financial professionals can offer help with all of these; others handle only a few:

• Estate planning
• Taxes
• Retirement
• Savings
• Investments
• Education
• Insurance

Advisors with Mentor Capital Management Inc. are qualified to provide comprehensive financial advice in areas including but not limited to the seven noted above. All have four-year college degrees and a professional designation, either CFP or CPA. All offer financial advice strictly on a fee-only basis. Because no one but their clients pays them, they have eliminated most of the conflicts of interest that are present with many other financial advisors.