Retirement, it’s on everyone’s mind. Isn’t that the goal anyway? Work up into your 50’s and then enjoy the remainder of your life in peace and harmony? Now unless you happen to be one of the few in the top percentile that has actively started saving for retirement in your early 20’s then might be time to do a quick Google search for ‘certified retirement financial advisors near me.’ However, it leaves one to ponder the question: even if one does find a retirement financial advisor near me, why should I entrust them with something as important as my future?
What is a Certified Retirement Financial Advisor?
What makes certified retirement financial advisors (CRFA) different from regular financial experts? As the name would suggest – a CRFA has shown their capabilities in the complicated world of retirement planning. Think of it like this, a financial advisor may be actively managing your investment. Whereas, a certified retirement financial advisor will guide you on:
- Estate Taxes
- How To Reduce Capital Gain
- Provide Information on Insurance Products
- Estate Planning
- A 360 Look at Life After Retirement
In order to revise a retirement financial plan for you, your CRFA will do a holistic approach towards your finance. This can include an analysis of your assets, any debts you may have, or they may even take into account whether or not you will continue to work part-time after retirement. To better understand your financial picture, your certified retirement financial advisors may also question you about any future inheritance that may come your way.
How Does One Become a Certified Financial Advisor?
Unlike a certified financial planner, which necessitates an individual to have to condone ample training and testing, to become a certified financial advisor the hurdles are not too difficult. Simply put – anyone can apply to get a CRFA.
The Society of Retirement Financial Advisors, the organization that accredits individuals based on their expertise on retirement-related matters, does recommend that those seeking accreditation have work experience in a similar field and an educational degree that correlates.
When talking specifics this entails that individuals have three years of work in the relevant field. For example:
- Investment Industry
- Insurance Industry
- Tax Planning or Preparing
Similarly one can have job skills pertaining to classroom training in the financial industry.
What Does a Basic Certified Retirement Financial Advisors Program Feature?
In order to be credited once either self-teach themselves or take live classes that add up to 24 hours. Subjects include insurance, securities, taxes, trusts, and estates. Furthermore, they must successfully pass a test and acknowledge that they will continue to revise on their own as rules and regulations change.
Class Training
If individuals choose the good old class method they can indulge themselves in a seminar that typically lasts three days. This can be either done in person or online. The benefit of attending a classroom setting is the ability to ask, peers and teachers alike, any questions or concerns one may have.
Self – Taught
If you’re ready for a challenge then you may choose to teach this information to yourself. However, those who choose to ride down this slippery slope must be willing to prove that they have successfully completed 24 hours of education in professional financial services.
Examination
The exam itself will consist of six main topics:
- Retiree Tax Issues
- Investment Concepts for Retirement
- General Retirement Principles
- Government Programs
- Estate Planning
- Ethical Standards
Success Rate
It is estimated that if those who attempt the 4-hour exam 72% pass it within the first attempt, while 90% pass it on the second try itself. Therefore, making it perhaps one of the easier examinations to clear when it comes to the field of financial planning.
What Happens After?
Once cleared, you will receive a completion certificate. However, with the certificate one also agrees to continue to revise their studies with at least 15 hours annually. In addition, certificate holders also have to either pay an annual subscription for being a charter member or may choose to renew the certificate for a small fee.
If one forgets to renew the certificate or membership fee then they must clear the final exam again.
What Are Some Alternative Options?
Despite being labelled as a moderate to easy certificate to obtain, CRFA is at times not given its due diligence – especially compared to its counterparts. Whereas, becoming a certified financial planner (CFP) involves a meticulous amount of hard work through years of studying to clearing tough exams.
Even though it is thought to be an easy accreditation, it was reported that only 110 people had successfully obtained a CRFA certificate at the end of 2014.
Financial advisor accreditation similar to CRFA include:
- Chartered Retirement Planning Counselor (CRPC) – this is a graduate-level course that caters to training individuals on creating the ultimate retirement roadmap. This includes obtaining expertise in asset management and estate planning.
- Fellow, Secure Retirement Institute (FSRI) – with this an individual is taught a wider spectrum of retirement topics. These include anything from investment management to overall customer experience.
Final Say:
While it’s true that individuals interested in becoming certified retirement financial advisors only need to pass the exam to become accredited. It is highly recommended that they choose to either enroll in a class-based option or dedicate themselves enough to self-study.
While having accreditation does not entitle one to certain privileges above rest, it does come in handy with looking for job opportunities. So the next time someone searches for a certified retirement financial advisor near me – your name is sure to pop up.
To better understand retirement strategies for retirement and how to choose between RRSP and TFSA click here.
For all other retirement-related information you may contact us today. With more than 25 plus years of experience in financial planning, Fin Plan is the one-stop shop for your path to a successful retirement.
So what are you waiting for? Book your appointment today!
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