Kevin Lynch has two versions of his business card. The first, which he proffers as managing agent of Specialized Insurance Services, a subsidiary of Texas Trust Credit Union based near Fort Worth, bears some well-known, well-established designations: CFP, CLU, ChFC.

The second version bears the name of Lynch's sideline business, an agency specializing in long-term care insurance, which he believes is one of the most valuable products financial planners can bring to clients' attention. This card sports three designations, too, but they're different: CASL (Chartered Advisor in Senior Living), CLTC (Certified in Long Term Care) and CSA (Certified Senior Advisor).

You'd need a third card, though, to list the full gamut of Lynch's credentials. He holds a total of 15 professional designations and is working on four more. "I believe all the continuing education (CE) you receive is worthwhile," he says, "if you gain something from the program that will help you serve your clients better."

Although Lynch's CV of CE might be extraordinary, he's not the only planner to discover the allure of multiple designations--and the ones he has earned are far from a comprehensive list. "We estimate that there are 89 designations, certifications and degrees available to financial services professionals," says Ed Morrow, CEO of Financial Planning Consultants in Middletown, Ohio.

Morrow made his comments before the Retirement Income Industry Association, which announced that it will offer a series of programs culminating in a new designation for retirement income professionals. That brings the total of letter groups up to about 90, a number that may rise even higher by the time this article is in print.

Are all these designations helpful for planners--or for clients? As might be expected, opinions differ. Some planners are satisfied--and professionally successful--with only one designation.

THE MINIMALIST APPROACH

"I have only a CFP," says Dan Moisand, principal at Spraker, Fitzgerald, Tamayo & Moisand, a planning firm in Melbourne, Fla. "As a CFP, you're required to get a great deal of continuing education," says Moisand, now the president of the Financial Planning Association (FPA). "There's no need to get another designation."

Similar sentiments are expressed by Peggy Cabaniss, president of HC Financial Advisors in Orinda, Calif., who is now the chair of the National Association of Personal Financial Advisors (NAPFA). "I probably get 50 to 60 hours a year of continuing education by going to conferences and workshops," she says. "I haven't seen a sideline that I thought was worthwhile, so I just have the CFP." Such a broad-based designation is necessary, she states.

Cabaniss' firm hires CFPs for comprehensive planning and CFAs on the investment side; both designations cover a lot of ground and require intensive study. "If I were interviewing someone with, say, a mutual fund designation, but not a broad designation such as a CFA, I would not feel comfortable hiring that person," she says.

Yet another leading planner who holds just a CFP is Marilyn Capelli Dimitroff of Bloomfield Hills, Mich. She serves on the Board of Governors of the Certified Financial Planner (CFP) Board of Standards. "The knowledge base you need to acquire and maintain a CFP is so broad that I haven't been tempted to get a specialty designation," she says.

Nor is the CFP the only professional designation that can stand on its own. "Among financial credentials, there's a 'Big Four,' " says David Legeay, senior vice president and director of portfolio management for investment management services at Key Private Bank in Cleveland. "Those are an MBA, a CFP, CPA and CFA. I hold the CFA because that's the basic designation in the investment industry. It's a difficult designation to get, and it tells people you are well schooled, that you've made sacrifices to complete the course of study."

MAXING OUT ON INITIALS

Obviously, some planners see the logic of seeking additional credentials, or there wouldn't be 90 designations (and counting). "I just got my CFP and I need to do a certain amount of CE," says Ed Dunlap, a vice president at M&T Bank in Harrisburg, Pa. "While I'm doing it, why not get another designation?"

This reasoning led Dunlap to begin work in June 2006 on a Qualified Plan Financial Consultant (QPFC) designation, recently introduced by the American Society of Pension Professionals & Actuaries (ASPPA). The QPFC, which is so new that none has been awarded yet, requires four exams, two open book and two proctored. "I've been an associate member of ASPPA for over 20 years," says Dunlap, "so I know it's a respected organization. All my work now is in the area of retirement plans: IRAs, qualified and nonqualified. So I decided it made sense for me to take the course."

Another CFP, Melinda Thomas, a first vice president with Morgan Stanley in San Luis Obispo, Calif., recently came to the same conclusion. "We work extensively with business owners," she says, "so retirement plans are a major issue. This area is changing so quickly that I wanted more in-depth knowledge, in order to keep up. For example, I wanted to know about the latest options for retirement plans and what the IRS is focusing on."

Thomas has already begun studying for her QPFC, and she's pleased with the program so far. "Most business owners think of retirement plans as profit-sharing and 401(k) plans," she says. "We're learning about profit-sharing and money-purchase, and target benefit and defined benefit plans; they all have different rules for vesting, loans and integration with Social Security." This information, she says, will help her recommend the best type of plan for a business, determined by factors such as the size of a company and the age of its employees.

"Even though the owner usually will be the client, this course is not focused only on highly compensated executives," says Thomas. "Among our clients who are business owners, their No. 1 concern is their employees. If we can suggest a retirement plan that can take care of everyone, the employees will be happier and more likely to stay at the company."

Thomas says she doesn't want to "step on the toes" of third-party administrators (TPAs) who specialize in pension plans, but she does want to be more informed about relevant issues. Such sentiments are echoed by Bunny Fernhall, chief of pension education for ASPPA, based in Arlington, Va. "People who earn the QPFC designation will know more about plan design and testing," says Fernhall. "When the TPA comes back with results, a QPFC designee will have a better understanding of the report."

While many financial advisers play an active role in retirement plans and retirement planning, the QPFC is not the only designation that indicates specialized study in this area. For example, the new designation from the Retirement Income Industry Association will indicate that a planner has the "specialized knowledge financial advisers must acquire if they are to succeed in the coming income distribution era," according to the association website. And the list doesn't stop there.

"We manage some small business 401(k) plans and advise the trustee, who is usually the business owner," says David Morganstern, co-president of CMC Advisers, a planning firm in Portland, Ore. "I wanted better grounding in what they should be looking at and what they should be asking. From what I heard, many trustees aren't qualified to administer retirement plans."

As a result, Morganstern studied for the Accredited Investment Fiduciary (AIF) designation from the Center for Fiduciary Studies. He received the designation last year and now includes it on his business card, along with his CFP and his MS (in marriage and family counseling). These credentials, he says, tell clients that he pursues continuing education.

"The AIF designation comes from a well-respected organization so it has credibility in the industry," says Morganstern. "It has helped me gain a deeper understanding of the role played by fiduciaries, such as making sure there is an investment policy statement and a diversified portfolio. Going beyond retirement plans to personal trusts, we see trustees who are well intentioned, but not formally trained, so we can help them."

Morganstern says that his firm and its principals have been asked by some clients to serve as trustee. "We have refused that role," he says. "We think we can add more value as an asset manager and a financial adviser. Now that I've been through the AIF program, I can show trustees how they can hold us accountable."

HOT SPECIALTIES

In the years ahead, retirement planning will become reality for many clients so a significant number of planners want to specialize in that area. "I'm a senior now and so are many of my clients," says Arthur Williams, a wealth management consultant in Irving, Texas. A 46-year veteran of the industry, Williams asserts he was one of the first people to hold both the CFP and CLU designations back in 1971. Two years ago, he added the CSA designation. His quote that the CSA course and its relevancy to real life are "the best I have experienced--ever" is posted on the Society of Certified Senior Advisors' website.

"In the 1960s," says Williams, "you could take a course and use what you learned for a while. That has changed because the pace and range of financial services has increased geometrically. The information I got from the CSA program--on lifestyles, health issues and Social Security, for example--is all very relevant to me now."

Specialty areas go far beyond retirement. For example, Stacy Francis, a financial planner in New York, added a CDFA (Certified Divorce Financial Analyst) to her CFP two years ago. As the number of failed marriages increases, the field is emerging, she says. "There is so much advisers need to know that I wanted to get specialized training."

CHOOSING YOUR NEXT DESIGNATION

If you're going to devote the time to a specialty, and work for certification that you've added to your body of knowledge, how do you choose among all the vast array of programs available?

"An adviser can look at designations the same way a client seeks a financial planner," says Edyth "Dede" Pahl, executive director of Investment Management Consultants Association (IMCA), in Greenwood Village, Colo. "One filter is the history of experience behind it. A designation that has gained recognition over 20 years might be more desirable than one introduced last year."

Pahl also suggests studying the required curriculum. "Look at the topics to be covered and the level of study," she says. "If the textbooks are approved by universities or colleges, the course work may go beyond the basics." The more demanding a course of study, the more a planner is likely to achieve by completing it.

"The first questions planners should ask are about the requirements for a designation," adds Moisand. "If you just have to fill out a form, pay a fee and take a one-hour course, that designation will not come across as much of an accomplishment." Indeed, Dimitroff reports receiving email offering a 30-minute designation. "It sounded wonderful," she says. "But how valuable can it be?"

Aside from the depth of the curriculum, is the setting important? Not necessarily.

"Distance learning is becoming very popular," says Moisand. "Sitting in a classroom, in and of itself, is not meaningful. The class could be basic, while an online course can be sophisticated. The testing mechanism is important too. Planners should ask for materials and outlines to see how challenging a program will be before making a decision."

In addition, you might not want to bother with courses that just about anyone can pass. "You should be able to request that information on the organization's website," says Key Bank's Legeay. "A very high success rate might mean that the test is easy, so the designation won't be as worthwhile."

Legeay rates the ongoing CE requirements among the most important factors to consider when evaluating a designation. "A minimum of 30 hours a year is necessary," he contends. "A strong CE requirement can increase the value of a designation."

Planners should check for references, too, advises Pahl. "Go to well-respected advisers and ask why they chose one program and eliminated others," she says. She recently joined IMCA and says the association and its CIMA (Certified Investment Management Analyst) designation have been "a closely held secret," one that she hopes will gain greater notice in the future. "While some planners leave investments to others, there are also planners who want more investment sophistication in order to respond to clients' requests. Our designation shows that someone has taken the study of investments to the next level."

Just as Pahl suggests checking out a designation with other advisers, Morganstern recommends some personal due diligence. "I would call four or five designees, and ask them, What has it done for you?'" he says.

Planners can also go beyond the designation to evaluate the sponsoring organization. Morrow, who chairs the International Association of Registered Financial Consultants (IARFC), says that planners should look for designations offered by not-for-profits. "With a for-profit group, you usually just have to sit in class and stay alive to get a designation. In some cases, an adviser might wind up as an agent for the company."

Even with a nonprofit organization, though, planners should examine the board of directors. "You want to see top-quality, experienced people holding substantial credentials," Morrow says. Legeay agrees that it's vital for a professional organization to have a strong board of governors, one that can handle complaints and mete out discipline when it's warranted.

"Look at the member benefits, too," says Morrow. "An organization is not credible without a useful publication, for example. Once you've joined an organization, you'll stay only if the benefits are relevant."

A code of ethics is another standard feature of organizations offering substantive designations. Once planners are comfortable with the organization, they probably will be assured that its designation is meaningful and will have credibility, within the industry and with the public at large.

What's more, planners should review industry publications to keep up with an ever-evolving and growing roster of available credentials. Cabaniss says that NAPFA, which currently doesn't confer any designations, is about to launch a new project to do so. "We'll offer university-level courses on important topics," she says. "There might be Estate Planning 101 and Estate Planning 201, for example. We're talking about awarding some kind of designation to advisers who have successfully taken all the classes."

Thus, planners need a scorecard to follow the CE scene. They should also be ready to explain their designations to clients. "Most clients don't have a clue about what it means to have a lot of designations," says Lynch, who is frequently called on to decode his collection of 15. "If you're a registered health underwriter, they probably won't know what an underwriter is. But I do hear things like, You sure do study a lot.'"

Multiple designations may or may not impress clients and help a planner build a practice. Nonetheless, the CE behind worthwhile designations will be valuable. "Studying for designations has given me a broad knowledge," says Lynch. "I know what I don't know about portfolio construction, for example, so I know when I need to bring in an expert."

For his part, Lynch intends to keep studying and adding to his stack of plaques. "No matter what happens," he says, "your education is the one thing that can't be taken away from you."

Click here to see the "Ten Most Wanted" designations.