Ask Brad: Is a CFP About to Become a Requirement for RIAs?
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This is the latest installment of a new, regular column to answer questions from advisors who are considering transitioning to an RIA model. To see Brad’s previous articles, click here. To submit your question, please email Brad here.
Unwritten rules have as much power as written ones. That is true of padding a big lead in baseball and of whether RIAs need to have the CFP designation.
Consider the case of Fernando Tatis Jr, the talented 22-year-old shortstop for the San Diego Padres. He signed a new 14-year contract for a whopping $340 million over the length of the deal! That is easily one of the largest contracts in all professional sports.
For a slightly less glamorous reason, he also made a newsworthy splash in August of last year – more precisely, on August 17, 2020.
On that night, the Padres were in Arlington playing the Texas Rangers. With one out in the top of the eighth inning, with the Padres leading 10-3, the then 21-year-old, barely old enough to legally drink, stepped to the plate with the bases loaded. First pitch… ball one. Second pitch… ball two. Third pitch… ball three.
Now sitting on a 3-0 count, Tatis swung and blasted a grand slam over the right field wall on the next pitch. It was the dream every little leaguer has of crushing a grand slam as a major league player.
As Tatis rounded the bases and started back to his dugout, he discovered not all of his teammates were cheering him on. Likewise, players in the opposing dugout were none too pleased. Texas Rangers manager Chris Woodward even walked a few feet out of his dugout to make sure his dissatisfaction was known.