Earning designations can open new opportunities, says April-Lynn Levitt, coach with the Personal Coach in Oakville, Ont. An appropriate designation can qualify you to serve your clients better by offering a wider range of products and services.
But not all designations are right for every financial advisor. Before investing time and money into acquiring a new designation, take the time to ensure it’s truly aligned with your business and personal goals.
Here are three best practices in pursuing a designation:
1. Seek feedback from colleagues
Ask for an opinion from your mentor or manager before embarking on a designation, Levitt says. He or she may know from experience how a designation may add value to your practice.
It’s particularly useful to hear from advisors who have already earned that designation. For example, Levitt has a client who was interested in pursuing the financial divorce specialist (FDS) designation, but didn’t personally know anyone who had gone through the process.
Levitt’s client took advantage of the member listings on the designation’s website, and contacted a few graduates to ask key questions, such as how their practice has benefitted since they completed the designation.
2. Consider the training method
Assess your preferred learning style, Levitt says. Some people lack the self discipline or desire to complete courses online or through correspondence, preferring the resources offered within a classroom environment. Many designations offer in-person classes, which are a better fit for some advisors.
Also, make sure that you are able to commit the time and effort it takes to complete a designation, Levitt says. Sometimes, advisors miss out on completing their designation because they’re simply too busy when the time comes to write exams.
Before signing up, map out your schedule to determine how much time you can realistically devote to studying, and then block those times off on your calendar.
“You really need to pretend that you’re back in university and create a study schedule,” Levitt says.
3. Explain the value of your designation to your clients
Some advisors have so many designations, Levitt says, that they can hardly fit them all on their business cards. This “alphabet soup” can appear meaningless to clients unless the advisor explains their purpose and what they mean to clients.
For example, your clients might not know that the certified financial planner (CFP) designation requires advisors to abide by a code of ethics and professional responsibility, in addition to obtaining a certain number of continuing education credits per year.
When pursuing or completing a designation, explain to your clients how it will improve your overall service. You can have this discussion during client meetings, by mailing a personalized letter or by mentioning it in your newsletter.
And, Levitt adds, always emphasize your designations when introducing yourself to prospective clients.