What do these letters mean?

If you haven’t watched the show “Veep,” stop what you are doing and binge. Truly an amazing show that has aged perfectly.

If you’ve ever wandered through the world of personal finance, investing, or taxes, you’ve probably stumbled across a minefield of acronyms: CFP, CFA, CPA, ChFC, CIMA, EA, RIA… and more. It can feel like everyone in the financial world has a handful of letters behind their name, but what do they actually mean, and when do they matter?

This week, let’s make sense of the alphabet soup.

📚 CFP – Certified Financial Planner

If you’re working with someone to build a long-term financial plan (retirement, college, estate planning, cash flow, and insurance), this is the credential you want to see.

CFPs go through rigorous training in financial planning, pass a comprehensive exam, and must uphold fiduciary standards (i.e., act in your best interest). Think: holistic advice, not stock tips.

Best for: People who want help managing their overall financial life.

📊 CFA – Chartered Financial Analyst

The CFA is one of the most respected (and brutal) certifications in the investment world. It’s a deep-dive into portfolio management, equity and bond valuation, accounting, economics, ethics, and more. Candidates go through three grueling exams over several years.

Best for: Professionals who manage investments or analyze markets. If you’re hiring a portfolio manager or researching a mutual fund, this is the gold standard.

💼 CPA – Certified Public Accountant

Most people associate CPAs with tax prep, which is fair, but CPAs are also trained in auditing, accounting, and business finance. To earn the designation, you must pass four intense exams and meet state licensing requirements.

Best for: Tax advice, accounting services, or small business financial help.

🧾 EA – Enrolled Agent

The EA is a federally-authorized tax specialist certified by the IRS. They’re especially helpful for complex or ongoing tax issues. Unlike CPAs, they focus solely on taxes, and unlike most tax preparers, they can represent you before the IRS.

Best for: Deep or messy tax situations, audits, back taxes, or self-employment complications.

🏆ChFC – Chartered Financial Consultant

Often seen as an alternative to the CFP, the ChFC requires similar coursework but doesn’t require the comprehensive exam. It’s often pursued by insurance agents or financial advisors wanting to offer planning services.

Best for: Similar to CFPs, but check for fiduciary duty.

🧠CIMA – Certified Investment Management Analyst

This one’s more niche — designed for advisors who manage large portfolios and provide advanced investment strategies. It’s backed by the Investments & Wealth Institute and includes coursework from top business schools.

Best for: High-net-worth individuals looking for complex investment help.

💡 A Few Other Titles You’ll See:

• RIA – Registered Investment Advisor: This is a legal designation, not a certification. RIAs must register with the SEC or their state and are required to act as fiduciaries.

• Series 7 / Series 65 / Series 63: These are licenses required to sell financial products or give investment advice. Think of them as table stakes for working in finance, not marks of deep expertise.

• MBA (Finance): Not a certification, but a common background among financial professionals — especially those in wealth management or corporate finance.

So… What Should You Look For?

It depends on your needs.

• Need a plan? → CFP

• Want to invest smarter? → CFP, CFA, or RIA

• Taxes confusing? → CPA or EA

• Running a business? → CPA

• Ultra-complex wealth? → CIMA or CFA

But remember: letters aren’t everything. The right advisor isn’t just qualified; they are trustworthy, communicative, and put your interests first.

Bottom Line:

Credentials help signal that someone has put in the work. But always ask:

• Are they acting in your best interest (fiduciary)?

• How are they paid (fee-only, commission, hybrid)?

• Can they explain things clearly or just throw around jargon?

At the end of the day, the best financial professionals don’t just pass tests. They help you meet your financial goals.

Debrief on Deck

Next week, we will talk about Acorns. This is a fintech company I am pretty jazzed up about right now. I have talked about it to everyone who will listen, so now I will write about it.

As always, please reach out to us with any questions or comments you have. You can reply directly to this email or find us on Instagram.

Until then, stay the course.

Disclaimer