Thu Sep 05 2024, by Tyler Gardner

Understanding Financial Advisor Qualifications

If you are thinking about working with a financial advisor, here's everything you need to know about their potential qualifications in under one minute.

I'm Tyler, I'm a former financial advisor and portfolio manager, and now I make financial content for free so that you don't have to pay for it.

1. Key Certifications

If they hold a Series 7, 63, or 65, they have passed a basic four-hour exam that primarily tests their knowledge of laws and regulations. There is a reason that in every old Wall Street movie, once someone gets their Series 7, they're told to do nothing more than pick up the phone and start calling you to ask for your money.

2. Certified Financial Planner (CFP)

If the advisor is a CFP, or Certified Financial Planner, they've passed some legit exams covering estate planning, insurance, taxes, investment strategies, and ethics. Note, those without CFPs tend to refer to this illustrious crowd as those who can't effing produce. Ironically, you can rest assured that if someone holds a CFP, they're usually in it for the right reasons.

3. Chartered Financial Analyst (CFA)

If the advisor holds their CFA, they are a Chartered Financial Analyst and have spent more time studying than you probably did throughout your entire college career. I'm not kidding. Their CFA requires about 900 hours of reading across various topics. They have to pass three of the hardest exams in finance. If they have their CFA, they know what they're talking about.

4. Insurance Agents

If the advisor is an insurance agent who holds only a property and casualty license or health and life license, note they are not qualified or certified to talk to you about investing strategy, no matter how much they wanna be.

5. Fiduciary Duty

Finally, if the advisor adheres to regulation BI, best interest, or they serve in a fiduciary capacity, they're supposed to put your interest above their own. That said, Bernie Madoff was a fiduciary. I'm just saying, people are people.

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