How to Fish a Retirement Professional Out of an Alphabet Soup of Acronyms

Affluent investors seeking the services of a retirement professional may find themselves swimming in an alphabet soup of acronyms representing scores of impressive and not so impressive credentials.

A Certified Retirement Counselor, or CRC, has prepared for and passed a four-hour, 200-question multiple-choice exam covering a range of retirement topics, and must meet other requirements set forth by InFRE, the International Foundation for Retirement Education. The CRC designation is accredited by the National Commission of Certifying Agencies, the accrediting body of the Institute for Credential Excellence or ICE. (ICE has been accredited by the American National Standards Institute as a Standards Developer.)

A CRC designation signifies that a retirement professional has completed a bachelor’s degree or higher – or its equivalent – and has had a minimum of two years of “relevant retirement related professional experience” in the past five years. Alternatively, the advisor may have a high school diploma or its equivalent and five years of related experienced within the last seven years. The retirement professional must also adhere to a CRC ethical code and complete 15 hours of continuing education every year.

The College for Financial Planning awards two designations, the Chartered Retirement Planning Counselor (CRPC) and Chartered Retirement Planning Specialist (CRPS). According to the college, the designation helps a retirement professional meet the increasingly complex needs of aging baby boomers, who are not only trying to determine when they can retire, but are also looking for investments to meet their needs in “10 years, 20 years and beyond.”

The CRPC and CRPS designation are awarded following a year-long educational program and the passage of a final examination. Retirement professionals must also adhere to the college’s code of conduct and complete 16 hours of continuing education every two years.

Advisors carrying these credentials have taken a series of courses focusing on clients’ needs as they prepare for and enter retirement. Topics include the retirement planning process, sources of retirement income, saving for retirement, employer-sponsored retirement plans and long-term care needs. Courses also cover when to retire, how to spend and manage retirement assets, tax issues in retirement and estate planning.

The Society of Certified Retirement Financial Advisors confers the CRFA – or Certified Retirement Financial Advisor – designation.  The certification signifies the retirement profession has passed a 100-question exam relating to financial planning for retirees and has working knowledge based on two years of work experience or sufficient class room training in insurance, investments and tax planning. A CRFA must also possess a basic understanding of trusts, adhere to a code of ethics and pursue continuing education.

Investors are most likely to engage a retirement professional to discuss such issues as saving for retirement, establishing a sufficient cash flow, planning for long-term care and establishing an estate plan, according to Millionaire Corner research.