Financial Advisors and Financial Planners
There are many different investment professionals that consumers can take advantage of. Two of these are a financial advisor and a financial planner. These two professionals help people manage their money.
What is a financial advisor?
A financial advisor is a broad term for any professional who helps you to manage your money. You hire a financial advisor, and in turn, they help you with any money-related tasks. They may help you to manage investments, broker the sale and purchase of stocks and funds, help to create an estate and tax plan, or any other financial tasks. An advisor that works with the public must hold a series 65 license. In addition to the series 65 license, a financial advisor may hold a variety of different credentials depending on the services they provide. A financial planner is a type of a financial advisor.
What is a financial planner?
A financial planner is a type of financial advisor who can help individuals meet long-term financial goals. They can have a specialization in investments, taxes, estate planning, and/or retirement. Additionally, they may hold various licenses or designations. To get the different licenses, a financial planner must complete a different form of education, examination, and work history requirements.
Financial planners are important because they understand often overlooked financial issues. These issues include complex tax laws, information about the investment landscape, and any changes in one part of your plan that can ruin another part. They also provide high-quality financial advice specific to your situation. To choose a financial planner, first, understand your financial planning landscape. Then, find a planner who best fits your needs, whether it is a broker, investment advisor, insurance agent, or one of the many others.
What’s the difference?
Every financial planner is a financial advisor. However, not every financial advisor is a financial planner. Consumers will ultimately choose which type of financial advisor is right for them.