The Designation Decision

Even though we all begin each day with exactly the same amount, “time” seems to be in short supply for all financial advisers. There is an ever-present need for seasoned professionals, the first-year junior partner, and everyone in between to be judicious in how they segment, allocate, and utilize their time—their most precious commodity. Because time is a finite resource, it is no surprise that many of us in this business frequently are asked: “What designation(s) should I obtain?”

When a financial adviser posits the question, he is more often than not waiting to hear three or four letters roll off the tongue of the respondent. The response of consonants and vowels either will serve to validate what the questioner had in mind to begin with or the stated response might surprise the interrogating financial adviser.

Heading in the Right Direction

I think there are two designations that every adviser must have (or at least, work toward obtaining): the one that the adviser will need in the next three to five years to keep his business on track with his long-term strategy (vision); the one that the adviser wants because he has a genuine interest in the topic, content, and values of the sponsoring organization.

At this part of the conversation, the perceptive financial adviser sometimes realizes he is not going to obtain a quick designation endorsement and will seek out another professional to ask—but think about it.

The designation that every adviser does need (a) is the one that best positions the adviser to achieve his strategic plan and business goals. Why would a financial adviser consider any other reason when identifying his very next designation?

The designation that an adviser wants (b) to obtain will be a labor of love and should, in some way, augment his expertise to the point of creating a field of specialization.

Why Expend All This Thought on One Simple Question?

Using such a process for determining your continuing education curriculum for the next five years places “achieving your long-term goals” as the most important component of your strategic plan. (I have yet to meet the financial adviser who gets positively motivated when faced with additional CE requirements.) Accept the stark reality that a new designation means more CE requirements.

A financial adviser’s decision around which designation to pursue should be based upon the foundation of what the designation stands for and what it represents to the industry and your clients. It helps if the sponsoring organizational values match the values of the adviser.

There are varying levels of participation in which the designee can engage. Continuing education is just the annual “price of maintenance.”

Consider the following participation levels and the approximate amount of time you spend annually supporting the organization (which, admittedly, can vary among the designations):

Basic: CE required for designation only (3 hours)

Proponent: The above plus newsletter, ad hoc writings or written promotional materials, and written or Webinar support (5 to 10 hours)

Active: The above and attending the organization’s national conference (three to five days, including conference and travel)

Leadership: All of the above, plus contributing to the effort of making the designation or organization better (five to 10 days)

Identification of the best-fit designation for any adviser takes some time. The adviser first should take notice of “where the industry is headed.” Then take note of “where the firm is headed.” After those concepts have been considered, then determine if a particular designation will support your business efforts during the next five years.

Working through such a process should deliver the adviser to a well-thought-out path for the next designation.

Steff C. Chalk is CEO of the Fiduciary Consulting Group, a fee-only fiduciary consulting practice serving corporations and nonprofits. A judge for the PLANSPONSOR Retirement Plan Adviser of the Year award, and a faculty member of the PLANSPONSOR Institute, he is also the co-author of How to Build a Successful 401(k) and Retirement Plan Advisory Business.