What Makes a Financial Planner Essential to Wealth Management?

What Makes a Financial Planner Essential to Wealth Management?

What Makes a Financial Planner Essential to Wealth Management?

Financial experts come in a wide variety, ranging from accountants and insurance agents to brokers, financial advisors, and financial planners. Because a financial planner is a particular financial advisor, the phrase is often used interchangeably. You might get help from financial planners with retirement, investments, taxes, estate planning, and more.

Due to the intricacy of the position, many people only use the term to describe those who have obtained specific qualifications like the CFP or Chartered Financial Planner. A financial advisor is a financial planner; however, not every financial advisor certifies as a planner.

What is a financial advisor?

An expert who assists you in managing your finances is a financial advisor. They might create a comprehensive estate and tax plan, acquire or sell equities, or help with investment management. A financial advisor, specifically independent, will frequently concentrate on a particular issue. However, they take a restricted view of the issue and only offer advice concerning the things you have requested.

Financial advisor’s scope of work:

  • a tip on how much money to save
  • recommending investments
  • offering Surrey tax services
  • purchasing and selling stocks on a client’s behalf

What is a financial planner?

A financial planner is a professional who approaches their client’s money more thoroughly. They’ll assist with creating a strategy for retirement planning, saving money, and trust management services in your area. Along with helping clients reach their financial goals, the task may entail eventually managing investment portfolios. While many financial planners help one-on-one customers in their practices, they may also work for banks or wealth management companies.

Key Differences

A financial advisor is a person who takes care of the preparation and other facets of money management or financial products, which is a more general phrase. They could offer financial services, life insurance, real estate, or accounting services, as well as short-term trade facilitation.

A financial planner depends on strategic portfolio appropriation for wealth management services with relatively lengthy time horizons. CFPs are held to a high standard, but the term “financial advisor” can apply to a wide variety of professionals who may or may not be held to the same standards.

Which one fits you best?

  • In some circumstances, both financial advisors and planners might be beneficial. Regardless of who you choose to work with on your finances, be sure to follow some simple guidelines to safeguard your interests and maximize your resources:
  • Request referrals from friends and family, but also do your impartial evaluation by speaking with them and asking plenty of questions.
  • Before hiring someone, verify their credentials, history, and whether they have ever been the subject of grievances.
  • Request a detailed explanation of their compensation from them, including how you will pay them and whether they will receive any other compensation for their work for you.
  • If you plan to use them to make investments, find out if they have the necessary authorization to provide you with the investment before checking their claims.


Both financial advisors and financial planners assist customers with financial matters. However, “financial planner” refers typically to a Chartered Financial Planner. Finding the right financial expert will be necessary when you need assistance with a particular financial concern.

A CFP will be a better choice if you have a more serious problem or want a professional who will manage your finances more actively. A Chartered Financial Planner is someone who understands financial planning and counseling. This certification characterizes worldwide standards for financial management.