What is the diffrence between a financial advisor and a financial planner?
Question:
The problem is that different brokerage firms call their brokers advisers, planners or consultants. A true comprehensive financial plan looks at your whole financial picture and will give you a map based on your goals. Some brokers can do this, but many are really specialists trying to sell a particular instrument - be it stocks, insurance, mutual funds etc. There are also differences between "fee only" planners who charge a fee for the plan and do not make commissions on the instruments vs. commission planners who offer free advice but then make money when you implement their plan. Consider looking for a "CFP" who is a certified financial planner, or other credentials (CPA with PFP -Personal Financial Planning) In any event - interview the person. See that you agree with their philosophies and approach. Sometimes fee only is preferable, other times commission might be a cheaper approach. Unfortunately their is little regulation on what people can call themselves so you have to do your own homework.
A financial advisor, helps you determine which investments are best for you.
A financial planner takes it furthur with advising about retirement planning, wills, insurance, investing, and monitors your changing needs over the years.
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