16 Top Advisor Credentials: Cerulli

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The post-pandemic recovery has been anything but smooth, leaving many Americans anxious about their finances and prompting them to look to financial professionals for advice.

However, the industry is experiencing a crisis in recruiting and retaining new blood.

Need for Advice

Advice seekers have varying needs, depending on levels of wealth and demographics. High-net-worth practices are increasing investment service offerings as clients clamor for alternatives, and expanding their planning services as families prepare for wealth transfers and transitions. 

Many younger wealthy investors are switching advisors because they need one with different or specific expertise. They also prefer to work with advisors who have diverse teams and track records of helping women, business owners and minorities, and offer remote services.

Women bring particular factors to the advice relationship that can make financial planning different for them. They shoulder the majority of caregiving, which can negatively affect their career, savings potential and mental health; they live longer in retirement; and they often lack a firm idea of their potential health care costs.

Black and Hispanic Americans, who are increasingly engaging with advisors, require a holistic approach by financial professionals. They want to discuss big, unexpected expenses, how the high cost of living may prevent them from enjoying retirement and how to navigate Medicare and health insurance.

Addressing the Recruitment Dilemma

One way to get on top of the recruitment problem may be for smaller independent offices to hire and nurture next-generation advisors by focusing on two related themes: feeling valued and compensation.

Commonwealth Financial Network has expanded its Talent Exchange Initiative to connect skilled, work-ready students from universities that offer certified financial planner programs with affiliated advisors.

Women are needed in the industry, but the number of female certified financial planners barely edged up in 2023. To address this, the industry could better educate high school and college students about potential available career paths. 

Not to be overlooked are military veterans who are seeking a career path that allows them to leverage their skill sets and continue serving those in need.

People enter the financial advice industry from a variety of backgrounds and with different areas of expertise — or none yet if they are just out of college.

Sometimes these folks come together in one firm. One wealth manager’s in-house team includes CPAs, estate planning attorneys, tax attorneys, money managers and the firm’s chief investment officer to meet the needs of its high-net-worth clientele. 

As laid out in the accompanying gallery, a new report from Cerulli Associates lists 16 practice licenses and designations and their distribution across channels. While some credentials are required for advisors to practice, others are in increasing demand as clients’ needs, and the expectations of advisors, grow more complex.

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