Why More CFPs Are Seeking Retirement-Specific Credentials
Tax-savvy retirement income planning was once a niche for financial planners, but the silver tsunami has changed that.
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The Certified Financial Planner certification remains the most widely recognized and largest accreditation for financial planners, with just shy of 110,000 professionals now holding the designation and a record 4,391candidates having sat for the most recent exam. Earning the CFP has traditionally been seen as a capstone achievement, one that gives advisors critical knowledge about taxes, estate planning, retirement, investments and insurance. That remains true, advisors say, but some now feel holding the CFP marks alone isn’t enough, especially when it comes to advising clients on drawing down savings during retirement. As a result, more advisors are pursuing targeted credentials to complement their capabilities, and marketability.
“The future of the profession isn’t fewer specialists,” CFP Board CEO K. Dane Snowden told Advisor Upside. It’s more.
Let’s Get Specific
While there are hundreds of designations in the field today, advisors seem to be coalescing around a select group of both newly developed and longstanding credentials. Two brought up consistently in informal surveys of Financial Planning Association members and Dynasty Financial Partners-affiliated advisors were the Tax Planning Certified Professional and the Retirement Income Certified Professional designations offered by the American College of Financial Services. The former was launched just last year but has since become the fastest-growing certification in the college’s nearly 100-year history. The Chartered Retirement Planning Counselor accreditation also came up frequently, as did the Enrolled Agent designation from the IRS.
“The CFP does a great job of providing general financial planning training,” said Dwight Dettloff, founder of Winding Trail Financial Planning. “But the RICP goes into specific areas that are most relevant to retirees, including Social Security, cash flow, taxes and investments.” Others agreed, noting both clients and advisors spend years focused on accumulation and “climbing the mountain.” However, coming down the mountain requires a different skillset and mindset.
When it comes to claiming Social Security, a number of advisors reported obtaining the Registered Social Security Analyst designation, and some like Antonio Lugo, advisor at Smart Wealth Strategies, have complemented the RSSA by becoming certified with the Centers for Medicare & Medicaid Services. “The landscape around taxes, Medicare, extended care and retirement account regulations evolves constantly,” Lugo said. “Staying current is essential.”
Two Birds, One Stone. Some advisors, including Maggie Beach at NexJenn Financial Services, said their need to obtain continuing education credits to maintain one credential has led to a virtuous cycle. “I’ve obtained the RSSA, RICP and other certifications just to satisfy ongoing CE for my CFP and CPA, and they have become key to my retirement planning engagements,” Beach said. “Not to mention, they give a bit of a leg up on AI, which doesn’t understand some of the nuances yet.”
