Financial Advisor vs. Financial Planner

Financial Advisor Vs. Financial Planner | Staying Financially Healthy | Reverse Your Thinking® Mortgage with Mathius Marc Gertz Benjamin Franklin on the one hundred dollar bill framed by other banknotes.
Financial Advisor Vs. Financial Planner | Staying Financially Healthy | Reverse Your Thinking® Mortgage

Do you require financial advice? Do you need a financial advisor, financial planner, or an accredited financial counselor? The answer depends on various factors, including how complex your finances are, how comfortable are you managing investments, where you are on your path to wealth, and where you want to be.

The advisor’s role is to assist you in getting from where you are to where you want to be financially. However, there are expenses involved, and not everyone requires assistance. To make an informed decision about whether or not to hire an advisor, you must research and take into account yourself.

Most of the time, folks use the phrases financial advisor and financial planner interchangeably. However, they are not the same from a technical standpoint.

Financial planners are a subset of financial advisors. Stockbrokers, financial planners, insurance agents, bankers, accountants, accredited financial counselors, and estate planners are all examples of financial advisors.

What Exactly Does a Financial Planner Do?

A financial planner may be able to assist you in getting closer to your financial goals.

Practical financial planners provide recommendations to help you achieve your financial goals. One of the most fundamental aspects of this guidance is handling and planning for investments. A financial planner can assist you with a comprehensive investment program as well as services such as:

  • Examining and Preparing for Household Spending
  • Retirement strategies
  • College funding strategies
  • A look at insurance coverage and some considerations
  • Working with tax advisors, estate planners, and other specialists

Financial planners assist people in determining how to manage their money. They learn about your circumstances, offer advice, and aid you in making sound financial decisions.

Working With a Financial Planner

You have three primary responsibilities when working with a financial planner:

  1. You talk about money and your objectives.
  2. Accept or reject your advisor’s recommendations, and explain why.
  3. You fund the recommendations that you accept.

Consider how effectively you can meet these tasks before selecting a financial advisor. Are you comfortable discussing money, expressing your viewpoint when you do not see eye to eye, and investing according to your financial plan? In an ideal world, the answer would be clearly yes.

An advisor may be unable to assist you if you are unwilling to be open and straightforward about your money and the reasons behind your decisions.

Pros and Cons of Working With a Financial Planner

While money is a renewable resource, time is not. Your time is more valuable than money. Your planner helps you save time. They can look into various investment possibilities and keep track of your money, so you don’t have to.

They are the expert. Depending on how much you know about investing, hiring an planner may be better than managing your own money.

Emotions can be an investor’s worst adversary. Your planner can help you avoid making costly judgments based on emotions. When the market is volatile, putting a financial planner between you and your money can offer you the breathing room you need to remain patient.


Planners are paid for their services, as they should be. When you invest, some planners charge commissions, while others charge an annual fee. In any instance, paying planner fees reduces your net investment returns.

Furthermore, not all planners are competent. Choosing the right financial planner might take time. Check the references of more than one planner for the job. The best financial planner is not just knowledgeable about money but also friendly, dependable, and trustworthy.

We’ll talk about when it makes sense to bring in a financial planner next week.