Andrew D. Hunt MBA, CFP®

The acronym RIA stands for Registered Investment Advisor. RIA’s provide financial advice for a fee and are regulated by either the Securities and Exchange Commission or the state in which it is registered. RIA’s are different from a Broker/Dealer in a few ways. First an RIA typically does not hold custody of the assets they advise on, this means that there is a barrier between the client’s money and the advisor. This barrier is typically a third party brokerage firm such as Schwab, TD Ameritrade, or many others. Second and RIA carries a fiduciary responsibility when working with clients. That means that an RIA is legally bound to act in the client’s best interest at all times. A Broker/Dealer carries a suitability requirement which means that they must be able to justify the investment recommendations they give. The fiduciary standard is a higher level of care. Simply being registered with the SEC or state does not mean that an RIA is qualified, which is why you should always perform some due diligence research prior to entering into a relationship. Good sources of information include the SEC website, Brightscope, The Financial Planning Association, and the Certified Financial Planners Board.

Great question. The best way to improve your credit score is to have a nice, long history of on-time payments. So making sure you are hitting deadlines and paying the full required payment is paramount to improving your score. In the meantime, if you have any outstanding collection items, judgments, or garnishments pay those off or settle them. By cleaning up those negative items you will see a quick improvement in your score. I wrote a financial guide on what makes up a credit score here: http://www.brightscope.com/financial-planning/advice/guide/1511/What-Makes-Up-A-Credit-Report/ that may provide some additional insight for you.

The Chartered Financial Analyst (CFA) designation is an extremely rigorous and esteemed credential. The relatively few professionals that achieve the right to carry the acronym have proven that they have an extremely in-depth understanding of investments and investment products. This designation is designed for professionals who have a desire to be a money-manager or investment product engineer. Many who receive the designation go on to work in the mutual fund management or investment banking arena. As a generalization, if an investment advisor is a CFA charter holder, typically this means that their practice has a strong emphasis on investment management. This would be different from a Certified Financial Planner who might offer more holistic financial planning that may focus on investments as well as, estate planning, tax planning, debt management, retirement accounts, etc. Ultimately, I am of the notion that the CFA designation is one of 3 or 4 credentials that really carry a significant amount of value. In my opinion if your advisor carries the CFP®, CFA, CPA, or CIMA designation they have proven that they are committed to continuing education, ethics, and increasing client value.