What Are the Differences Between Financial Advisor And Financial Planner?

What Does a Financial Advisor Do?

What Does a Financial Planner Do?

What Are the Differences Between a Financial Advisor and a Financial Planner?

Here is a table showing the differences between as financial planner and an advisor:

Financial Planner

Financial Advisor

Concerned about their client and client’s financial objectives.

Concerned about client’s investments and capital.

Assists organisations or individuals in achieving long-term economic goals.

Assists organisations or individuals with financial planning and other economic goods and money management aspects.

Offers services related to down payments, college tuition fees, retirement planning, real estate transactions, etc.

Offers life accountancy, real estate, and insurance-related services.

Gains commissions on the services and products they offer.

Charges fixed or hourly rates for their products and services.

Devises tactics and plans to handle their client’s long-term economic needs.

Assists in short-term banking services and trades.

General and broad scope of work

Detailed and comprehensive scope of work

No certifications required

Typically requires a CFP certificate

What Are the Similarities Between a Financial Advisor and a Financial Planner?

What To Choose from a Financial Advisor or Financial Planner?

Frequently Asked Questions

What should I know to qualify as a financial planner?

Aspiring financial planners must be adept in corporate valuation and financing, leveraged buyout, economic modelling, and technical analysis.

What are a few issues all financial professionals face?

Financial professionals may face issues such as, volatile markets, economic turndowns, changing rules and regulations, evolving trends and technology, etc. in their work field.

Are financial advisors also financial planners?

No, financial advisors are not also financial planners. However, all financial planners are technically also financial advisors.