Decoding the alphabet soup of financial advisor designations: what those letters actually mean

If you are in the process of looking for a financial advisor and have been looking through the "about us" pages of advisory websites, you have probably noticed that most financial advisors have letters behind their names—and if you’re wondering what they all mean, you’re not alone. Many people find themselves asking: What do those letters stand for? Which ones actually matter? Are they meaningful in helping me find an advisor I can trust? In this post, I am going to try to deconstruct some of the mysteries behind those financial designations for you.

First, let me start with my own. I also have a lot of letters behind my name. I don't always use them all--it depends on the context. My official title is Bryan Jepson, MD, CFP®, MSF, ChSNC®. I could even throw in FACEP if I wanted. I joke with my wife that I am going to keep adding letters until I get the full alphabet. It is a mouthful, for sure, and even though I don't always use them all, they each have significant meaning to me.

The one that you all will recognize is MD. I am a medical doctor. I am now very part-time in that profession, but it is what I have done for thirty years and is still a large part of my identity. When people ask me what I do, that is still the first thing that comes to my mind, even when the majority of my time is now spent on financial planning and education. Maybe it is because it was the hardest to achieve and required the most of me. I am sure that I will always identify as a physician, even after I have fully retired from medicine.

FACEP stands for Fellow of the Academy of Emergency Physicians. Emergency medicine is my medical specialty where I am board certified. So, in addition to an MD, I am a FACEP.

The second title is a CFP® or Certified Financial Planner®. This is my new career, my "encore" if you will. I will talk more about what a CFP® is and how to get that designation below.

My third designation is MSF. MS stands for a master's in science degree and the F is for finance. Technically, it’s a master’s in finance and risk management, but I usually shorten it to MSF for simplicity. Many people with master's degrees just use the first two letters MS and don't designate the specific focus area but since it is relevant to my career, I add the F.

Finally, there is ChSNC®. This one stands for a Chartered Special Needs Consultant. It also reflects a substantial part of my life because I am the father of two adult sons with autism, and special needs families will always command an important place in my heart. I wanted to get this designation for a couple of reasons. First, families with special needs have a lot on their plate and I felt that if I could help off-load some of that with my first-hand experience and financial expertise, I wanted to do that. There aren't that many people with special needs planning expertise out there so when I decided to become a financial planner, I knew that I wanted to add the service.

So that is me. Do I plan on adding any more certifications? We'll see. I don't feel like I need to, but if there is another area of subspecialty within finance that captures my interest, then I would consider it. I do like the learning process and gaining a certification helps to formalize that.

What about all the other designations out there? Let me see if I can break them down for you. Honestly, I had to look up most of them myself. The reason that there are so many is that there are several accrediting organizations with a lot of overlap between their various designations or certificates. For further information, here are the main accrediting bodies:

• The CFP board (cfp.net)

• The CFA institute (cfainstitute.org)

• The American College of Financial Services (theamericancollege.edu)

• Investments and Wealth Institute (investmentsandwealth.org)

• National Association of Insurance and Financial Advisors (naifa.org)

• College for Financial Planning (Kaplan)(cffp.com)

• National Association of Estate Planners & Councils (naepc.org)

• Internal Revenue Service (irs.gov)

  
  

On the financial advisor side, the two most recognized are probably the CFA® and the CFP®. Although they sound similar, they are quite different in terms of focus and requirements to achieve them.

CFA® - Chartered Financial Analyst: This is a highly respected designation given by the CFA institute. A CFA focuses a lot on the math side of finance. This may be evaluating and managing investment portfolios (often for large institutions or corporations), analyzing business financials and equity (stock) opportunities, doing strategic financial evaluation and modeling for businesses, analyzing investment opportunities and assessing investment risk for individuals or corporations. To obtain a CFA, you must pass a series of three challenging exams and have six years of work experience in the financial industry.

CFP® - Certified Financial Planner: This designation is probably the most widely recognized in the industry, largely because of the marketing efforts of the CFP board who awards it. The CFP board is trying to set a CFP as the standard for the financial planning industry. CFPs are trained in all of the aspects of comprehensive financial planning for individuals and families. It has seven focus areas: general financial principles, risk management and insurance, investment planning, tax planning, retirement savings and income planning, estate planning, and creating a comprehensive financial plan. A CFP should be able to advise a client in all of those areas.

To get a CFP, there is an educational requirement where the candidate is taught in each of those focus areas. Then the candidate must pass a challenging comprehensive test. They must also attest to an ethical standard that they pledge to live by. Finally, there is a work requirement of either 4000 or 6000 hours in the industry. The 4000-hour track is called an apprenticeship where you work under another CFP with direct client responsibilities. The 6000-hour option is broader and can include teaching, writing and other finance related activities. On average it takes most candidates 12-18 months to get through the education process and pass the test, in addition to the work requirement.

Master's degrees

MBA - Masters in Business Administration: This one's familiar to most people. An MBA can be obtained from many universities throughout the country and typically is either a one- or two-year advanced degree that focuses on all the aspects of managing a business.

MS - Masters in Science: These are also obtained through accredited universities and there are many areas of focus. Sometimes they will add that letter to the end (like the F in finance) or they leave it out. There is a master's degree in financial planning (MSFP) which would have a similar area of study focus as the CFP. A master's in finance (MSF) would be closer to the CFA curriculum.

Below are some of the other commonly used financial designations broken down by focus. Each of these may be from a different accrediting body with different requirements to achieve them. Some are more rigorous than others. Some may only require a single course, and others may take up to two years to complete. They also each require different levels of work experience before the advisor can use the letters. If you are looking at an advisor that uses one of these credentials, I would suggest that you do a little bit of research into them and be sure that you feel comfortable with that level of educational background. Of course, there is more to a good advisor than just the letters behind their name, but it might give you a place to start before you interview them in person.

General Financial Planning

• CFP® – Certified Financial Planner. The gold standard for comprehensive financial planning (retirement, insurance, investments, taxes, estate planning).

• ChFC® – Chartered Financial Consultant. Similar to CFP®, but offered through a different institution (The American College); often includes more electives.

• AIF® - Accredited Investment Fiduciary.  Empowers financial professionals with fundamental understanding of the principles of fiduciary duties, the standards of conduct for acting as a fiduciary, and a process for carrying out fiduciary responsibilities.

  
  

Investment-Focused

• CFA® – Chartered Financial Analyst. Highly respected in investment management and research. Heavy on portfolio management, ethics, and analytics.

• CIMA® – Certified Investment Management Analyst. Focuses on advanced investment consulting for high-net-worth individuals and institutional clients.

• CMT® – Chartered Market Technician. Specializes in technical analysis and market trends (charting, not fundamental investing).

• WMCP® - Wealth Management Certified Professional. Financial professionals seeking expertise in goal-based wealth management.

• AWMA® - Accredited Wealth Management Advisor℠. Focused on the unique needs of high-net-worth clients including behavioral finance, working with small business owners, succession/exit planning, and fiduciary/regulatory issues.

  
  

Insurance & Risk Management

• CLU® – Chartered Life Underwriter. Focuses on life insurance and estate planning.

• CPCU® – Chartered Property Casualty Underwriter. Mostly for professionals in the P&C insurance industry.

  
  

Retirement & Retirement Plans

• RICP® – Retirement Income Certified Professional. Specializes in helping clients create sustainable retirement income plans.

• CRPC® - Chartered Retirement Planning Counselor. Focuses on retirement planning for individuals, including pre- and post-retirement needs, as well as issues related to asset management and estate planning.

• CRPS® – Chartered Retirement Plans Specialist. Focuses on employer-sponsored retirement plans like 401(k)s.

  
  

Tax & Estate Planning

• CPA – Certified Public Accountant. Not financial-planning specific, but very useful for tax strategy and preparation.

• EA – Enrolled Agent. Tax-focused; licensed by the IRS to represent clients.

• AEP® – Accredited Estate Planner. Designed for professionals with advanced estate planning knowledge.

• TPCP™ (Tax Planning Certified Professional): Financial professional who needs comprehensive tax planning knowledge.

  
  

Other Niche or Supportive Designations

• FSCP® – Financial Services Certified Professional. Entry-level; good for early-career financial professionals.

• BFA™ – Behavioral Financial Advisor. Focuses on psychology, emotional decision-making, and behavioral coaching.

• CAP® - Chartered Advisor in Philanthropy. Professionals seeking a graduate-level education on how to support their client's philanthropic goals.

• ChSNC® - Chartered Special Needs Consultant. Financial professionals who work with special needs and disabled clients.

Believe it or not, that list is not entirely comprehensive! But it covers the majority of credentials you’re likely to come across. I hope this post helps you navigate the frequently confusing financial industry. As an outsider, but now an insider, I think the industry could do a better job of simplifying and standardizing these credentials. When choosing a financial advisor, don’t hesitate to ask what their designations mean. The right combination of credentials, experience, and personal fit can make all the difference.