If you are confused with both the name and think that they both are the same, so let’s make it clear that the financial advisor and the financial planner both are totally different from each other. To get a deep understanding of how these two roles work, here is the difference between a financial planner and a financial advisor. One of the leading financial advisors Ed Rempel, is a financial blogger, and fee-for-service financial planner. Ed Rempel review is helping thousands of Canadians get their financial houses in order and keep them there.
“The changing nature of money is only one facet of the financial services revolution,” said Scott Cook, an American billionaire businessman, a co-founder of Intuit, an American business that specializes in financial software. Scott Cook is also a director of eBay and Procter & Gamble.
What does a financial advisor do?
Well, if we talk about the works of a financial advisor then the main thing they do is, set up a pension for their customers, select an insurance provider, or pick an investment.
If we talk about financial advisors no matter if they are independent financial advisors they only focus on a single problem. They will not think of the big picture rather than that they will tend to look at the questions more deeply and only help you only for those areas that you have asked for.
If you want a piece of advice from your financial advisor about how much amount you can invest in the long term, to help you the advisor will provide you with better options for your investment strategy. The only risk that can occur is when your financial advisor will ignore the big picture then they can miss some important points. So, investing a lump sum amount will not be the best idea for you.
Well, having a financial advisor is very important but if you want the answers about “will you be okay after the investment”, “when can you afford to retire”, or “how much you can spend in retirement”, they will not able to answer this big questions.
There is another problem with financial advice that they only focus on financial products. If you ask why only financial products? It is because the financial advisor will only get paid when they recommend a particular product, no matter if it’s ISA, any investments, or a pension. Most of the time they will charge 2-3% of your investments.
What does a financial planner do?
Well, not like a financial advisor the financial planner will focus on the big picture by taking great efforts towards financial planning. If you are totally confused about what you will do in your life then your financial planner can help you by creating a plan to make it happen.
The main difference between a financial advisor and a financial planner is that the financial planner will put their complete focus on you and your goals whereas the advisor will focus on your money and your every investment.
If you get a good financial planner they will help you to control your finances and also they will provide you clear information about your financial future so that you can get confidence. They will help you to create your financial plan so that you can understand your clear path for your financial future.
So hiring a financial planner is much better than a financial advisor and it will provide you better value for money.