FINANCIAL PLANNER VS. FINANCIAL ADVISOR: IS THERE A DIFFERENCE?
A good plan is the first step to achieve any goal. A finance professional is required if you want to get your finances together and start working on a financial plan. However, the difference between a financial planner and an advisor may not be clear and may prevent you from taking a step towards financial independence. To help you start your financial journey, we define both these roles and break down the differences.
FINANCIAL ADVISOR:
Financial advisors are professionals who provide their clients with advice and direction about the project in which they want to invest in. Their roles and duties include:
- Looking into the clients’ financial goals and determine the investment that matches the best.
- Recommending investments that match best with clients’ goals and preferences.
- Discussing investment types and potential risks involved with the client.
- Observing clients’ accounts and suggest changes as required.
- Researching investment opportunities.
FINANCIAL PLANNER:
A financial planner is a type of financial advisor who is mainly focused to meet the long-term goals of their clients. Compared to a financial advisor, a financial planner dives deeper into their client’s situation and financial goals and creates a holistic financial plan to help them reach these goals. This holistic plan often includes risk management and investment, insurance, tax, retirement and estate planning. To create this financial plan, a financial planner must have a specialty in estate planning, investment, taxes, retirement and must hold a license in Certified Investment Management Analyst, Certified Financial Planner, Chartered Financial Analyst, and Chartered Financial Consultant. With these certifications, a financial planner has more experience and knowledge in creating a financial plan than a financial advisor.
ROLE AND DUTIES
Financial planner duties are as follows:
- Determine clients’ financial condition from a more holistic perspective except simply managing investments.
- Manage clients’ investments in a wider context than how the investments fit best in their complete financial portrait.
- Provide clients with services such as retirement, taxes, estate planning, and investment management.
- Plan for expenses, education, retirement, and other life events with the clients.
AREAS A FINANCIAL PLANNER COVERS:
The areas which are covered by financial planners are as follows:
-
CASH FLOW MANAGEMENT
This area covers the client’s expenses in their current and future and involves the running of income and out expenses. The financial planner plans strategies to ensure sufficient income for their client to cover expenses and save for their financial goals.
-
INSURANCE PLANNING
Such planning plays a role in the safety net and investment clients make it themselves. Additionally, they have a large coverage of life, vehicle needs, current health which clients have to change their policies as per the circumstances changes.
- TAX PLANNING
Tax planning includes investment decisions to help clients optimize their return on investments while lowering the amount paid in taxes.
-
RETIREMENT PLANNING
Retirement planning helps clients to begin planning about their retirement and the future of their family. With a financial plan, the client will reach their financial goals and retire without having to worry about having a job for financial support.
What are the benefits of working with a financial planner compared to a financial advisor?
Overall, a financial planner provides a more in-depth and holistic strategy than a financial advisor by optimizing all parts of the client’s financial plan and help their clients reach their financial goals. If you want to learn more about how we can help you reach your financial goals, book our complimentary 30-minute consultation session with us!
Author: Rachel Maisen, We Buy California Houses for Cash
Editor: Team Jackie Porter
More Financial News & Events
Dealing with spending pressures
Jun
Behind the Scenes – Working with Lawyers on a Financial Plan
Jun
Positive Experience with Financial Planning – A conversation with Erin Leslie
May
What Are the Process of Putting Together a Financial Plan? – A conversation between Jackie and Jin
May
Creating Financial Transformations
May
Building A Brand Effectively in Second Quarter – A Conversation with Cassie Drake
May
How to boost your business mojo – A conversation with Valeri Hall Little
Apr
How to make a financial fresh start second quarter? 5 principles from Jackie Porter
Apr
The #1 Challenge that Leaders Face, from the Founder of Green Apple Consulting – Lisa Mitchell
Apr
What is entrepreneur resilience? A conversation with Karen Dean
Mar
Barriers that Women Face to Access Healthcare – A conversation with Sara Byrnell
Mar
Six Action Steps You Can Take To Build Your Financial Confidence
Mar
How do we build lasting relationships and what leads to the honeymoon being over? A conversation with Gary Direnfeld
Mar
Re-visiting the Wedding Ritual in 2022
Feb
What Does a Private Investigator Know About Love, Money & Relationships
Feb
Myth-Busters: Everything Small Businesses Should Know About Funding
Jan
Slay Your Impostor Syndome
Jan
How to Form A High Performing Team for Your Business
Jan
2021 Holiday Shopping Trends and Tips to Help Your Wallet
Nov
How to Financially Start Your Divorce Journey
Nov
Divorce Planning in the Pandemic
Nov
How to Deal With Financial Trauma
Oct
Lessons for Small Business Owners in 2021
Oct
Small Business Resources for Start-ups
Oct
Top 6 Real Estate Trends and Strategies
Oct
The Importance of A Mid-Year Tax Check-Up With Your Accountant
Sep
Top 8 Business Finance Tips for Business Owners
Sep
Pricing Strategy: How to Charge and Manage Your Clients
Sep
Everyone should have multiple income sources
Sep
How to Manage Back to School Season in 2021
Aug
How to Start a Small Business at Home
Aug
How to Become an Empowered Leader
Aug
How to Tame Your Spending Dragon Post COVID
Aug
What does financial planning look like at different life stages?
Aug
5 Factors to Consider When Moving Out After Divorce
Jul
Service-Based Businesses Post-Lockdown
Jul
Financial Planner vs. Advisor
Jul
Estate Planning: How to be Proactive Around Your Will
Jul
Women’s Health Initiatives in Canada
Jul
How to win with higher investment risk
Jul
Celebrating Pride 2021 and Identifying the Challenges of the LGBTQIA2S+ Community
Jun
Travel Restrictions between Provinces and Countries This Summer 2021
Jun
How to Support Small Businesses during the Ontario Reopening Plan
Jun
Treat Cash Flow Like Royalty
Jun
Financial Planning for Lawyers: Working with Lawyer’s Financial
May
2021 Federal Budget Programs to Help Childcare
May
Investing Tips For Empowering Women’s Confidence
How to Find Investors for Women Owned Startups
May
Top Work Benefits for Executives
You Can Have It All! Invest Responsibly and Profitably
May