FREE NEWSLETTER
Today I read the following article by the very respected Allan Roth:
https://www.advisorperspectives.com/articles/2026/07/20/how-cfp-board-sold-public-profession
I have always regarded the CFP designation was the gold standard for advisors, and meant I could trust the advisor was looking out for my best interests. It appears this may no longer be the case.
About a year from now I will be looking for a new financial advisor as we analyze our overall financial situation once we both claim Social Security, and are looking at entering a CCRC within the following decade. Our previous advisor shifted us to his son as he was preparing to retire. Our interaction with the son (reviewing our financial status and whether my thinking of performing Roth conversions was the right decision) led both my wife and I decide he was either a poor communicator, or just did not understand non accumulators’ situations.
Do HD readers have any suggestions on other designations that have fiduciary standards that they stand behind?
I wouldn’t count on any three letters behind a name to ensure moral or ethical behavior.
A CFA would be top-notch, but they generally don’t work with individual clients.
Nice article by Allan Roth. Always remember, “No one takes better care of your money than YOU!”
Speaking as a licensed, but non-practicing CFP holder I can offer that one of the key factors to understand when interviewing prospective financial advisors is this – how are they compensated for serving you? And, this can take some digging and adept questioning to fully uncover. If the majority of their compensation is tied to specific product placement with their clients (e.g. mutual funds from certain investment firms in their clients’ asset allocation strategies, annuities from only a few insurance firms, etc.) then it may be beneficial to interview fee-only advisors who are compensated via a straight-forward fee that is charged to one’s account, most likely on a quarterly basis. In my opinion, the best advisors lead with great questions, are fantastic listeners, and pay even greater attention to the psychological and behavioral aspects of the relationships with their clients. While designations like the CFP and others are worthy achievements and help foster continuing education in the field, sometimes the best advisors are great at what they do too, without those fancy letters after their names.
State licensed Registered Professional Engineers. That’s the design designation that acts with diligence, prudence, and in the best interest of the public, exercising skill and caution in all decisions.
Yeah, I know that might not be the financial answer you were looking for.