For Team Health, Consider Accreditation Alphabet Soup

 In Retirement Planning & Wealth Management

An experiment was conducted in which two randomly assigned groups were given the opportunity to make a series of retirement or education savings investments.1 The singular difference was one group received recommendations from a stockbroker, while the other received recommendations from a Certified Financial PlannerTM (CFP), while all other parameters remained constant.

The study revealed that recommendations from a CFP were accepted— on average— 64% more often than from the uncertified stockbroker.

In an increasingly competitive landscape, building trust with clients is more important than ever, and having a differentiator that can help your practice stand out matters. Professional designations – whether CFP, Certified Investment Management Analyst® (CIMA®), Certified Private Wealth Advisor (CPWA) or others — can be a powerful tool in building trust with investors.

Today’s financial issues consistently increase in complexity in a world of modern families, divorce, second families, parents living with children, children living with parents, increasing health care costs, tax reform and so much more. All these things make for a more complex conversation that financial processionals need to have with their clients.

A Competitive Advantage

Knowledge LabsTM recently partnered with the Investments & Wealth Institute and Cerulli Associates to define the elements that make certain teams extraordinary. The study affirmed that top-quartile teams have a broader mix of advanced credentials compared to lower quartiles.

It showed that elite teams prioritize bringing together a mix of advisors with different backgrounds, strengths, expertise and interests, allowing for each member to make a unique contribution. Top teams also emphasize the value of professional development and continuously build technical depth. A deliberate investment in professional knowledge and skills allows teams to broaden and deepen their service delivery, which in turn helps them win clients and grow their practices as they are better equipped to address complex needs and objectives.

What is the right mix of financial smarts for you and your clients? While three Chartered Financial Analysts (CFAs) on a team means impressive analytical acumen, being able to discuss a broad spectrum of situations with our clients may mean adding a tax expert or benefits specialist. Consider going beyond traditional financial accreditations: Do you have somebody who is certified in conflict resolution? They may be the linchpin in solving a complex family legacy debate.

Also keep in mind that even though a member of your team is an expert, your clients may still need a little more heart than head to fully understand the implications of a difficult financial decision.

Already accredited? Visit Janus Henderson Continuing Education Resources.

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1Guillemette, M., & Jurgenson, J., (2017). The impact of financial advice certification on investment choices. Journal of Financial Counseling and Planning, 28(1), 129-139.

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