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Not sure whether to work with a financial planner or a financial advisor? You’re not alone. These professionals both offer valuable guidance, but their focus and services can be quite different.
This guide will walk you through what each role does, with real-world examples to help you decide which one fits your financial journey.
What Is a Financial Planner and What Do They Do?
A financial planner helps you map out your long-term financial goals—everything from retirement to saving for your kid’s education.
Think of them like architects for your finances. They don't just look at your investments; they consider your full picture—budgeting, taxes, insurance, estate planning, and more.
For example, if you’re in your 30s with a growing family, a financial planner might help you prioritize saving for your kids’ college while also building a retirement plan.
Financial planners typically help with:
Creating a holistic long-term financial plan tailored to life goals
Retirement planning with tax-efficient strategies
Coordinating savings, insurance, estate, and investment planning
What Is a Financial Advisor and What Do They Do?
A financial advisor is a broader term for someone who helps you manage your money—often focusing more on investments.
They might suggest which stocks, mutual funds, or ETFs to buy based on your risk tolerance and financial goals. Some advisors work for brokerage firms or banks, while others are independent.
Let’s say you recently inherited $200,000 and want to invest it wisely. A financial advisor can guide you in building a diversified portfolio, helping you balance growth with risk management.
Financial advisors often help with:
Investment selection and portfolio management
Tax strategies related to investments
Ongoing monitoring and adjusting of your financial assets
Financial Planner vs. Financial Advisor: Key Differences
While financial planners and financial advisors both help manage your money, their focus areas and day-to-day roles can be quite different.
- A financial planner typically considers the big picture, helping you create a comprehensive strategy for long-term goals like retirement, education, or estate planning.
- Meanwhile, a financial advisor often concentrates more on your investment portfolio, offering advice on where to put your money for growth, income, or capital preservation.
For example, if you're trying to figure out how to retire by 60 and also pay off a mortgage, a financial planner can design a step-by-step plan that balances these goals.
But if you're sitting on a lump sum and want help picking stocks or funds, an advisor will focus more on investment performance.
Who Needs a Financial Planner?
A financial planner is a good fit if you're navigating complex life events or want a clear long-term strategy.
You may benefit from a financial planner if you:
Want a full financial plan that covers retirement, taxes, estate planning, and insurance
Are experiencing life transitions (marriage, children, divorce, inheritance)
Need help prioritizing multiple long-term goals
Are focused on financial organization and peace of mind, not just returns
Who Needs a Financial Advisor?
A financial advisor is ideal if your main concern is investing—whether you're just starting out or already managing a sizable portfolio.
Advisors help you make decisions about where to allocate your money, how much risk to take, and when to adjust based on market changes or life events.
You may benefit from a financial advisor if you:
Have investable assets and want professional guidance on allocation and risk
Need help building a tax-efficient, diversified investment portfolio
Are planning for specific goals like early retirement or buying property
Prefer ongoing support to monitor and adjust your investment strategy
