If you have ever considered investing, chances are you have heard of financial advisors and financial planners: but what do you really know about the two?
While both offer similar services, it is important to understand the differences.
Financial advisor is responsible for helping a client manage their finances. It sounds pretty simple. A financial advisor can guide you through stocks, investments, estate planning, and taxes. They are required by law to hold a license and can also attain other credentials if they wish to offer specific services.
Picture an umbrella. Financial advisors are on the top level. It is a very general term, followed by different levels of more specialized individuals. Among those are financial planners.
A financial planner does exactly what the name implies, they plan. They create a plan for clients designed to reach financial goals. This could be a very specialized service like taxes, retirement planning, investing or estate planning.
It could also be a plan to eliminate debt and obtain financial freedom. Like financial advisors, financial planners are required to complete various educational courses and obtain a license for the services they offer.
Why It Matters
Let’s go back to our umbrella. Imagine the financial advisors on the top level. Now, at the lowest, most narrow end, we have financial planners. Although they are similar, there are some important differences.
While all financial planners are types of financial advisors, the reverse is not true. Not every financial advisor is a financial planner. However, nearly anyone can call themselves a financial advisor or planner. Therefore, if you are seeking these services, it is very important to know the differences and understand which service you need and ask about certified financial planners.
Before you hire either, you need to understand that both of these titles are general terms and encompass much more specific services. You should always investigate an individual’s background to ensure that they hold the required licenses. Remember to ask questions. Ask about their licenses, ask about their work experience, and ask about their fees.
It is a good idea to write down your questions. Compile a list of everything you want to ask and bring it to your consultation. This way, you won’t forget anything.
So, whether you need help with investments, retirement, or debt elimination, hiring a financial advisor or financial planner could be just what you need.
For more information on financial advisors, financial planning and what strategic help is right for you, contact Blisk Financial Group today.