Financial Advisor & Planner: Key Differences

The terms financial advisor and financial planner are often used interchangeably. While these two professionals have similarities, there are some differences you should be aware of.

We’ve put this article together to tell you everything you need to know about what financial advisors and financial planners actually do and how they can help you achieve your financial goals.

Why Would You Need Financial Help?

Financial advice is not just a service used by the very rich, everyone can benefit from support with their finances. A finance expert can help you build and retain your wealth, protect your assets, maximise your investments, and ensure long-term financial security for you and your family.

Here are some areas of finances that people often need assistance with:

  • Retirement planning and pensions
  • Investment
  • Inheritance tax
  • Mortgages
  • Accounts
  • Equity release
  • Cashflow planning

Managing your money can be complex and most people are unsure how to maximise their finances and most the most out of their income. A finance professional will help you create a strong plan that will increase your wealth and help you achieve your financial goals.

What is a Financial Adviser?

A financial adviser provides their clients with expert advice and guidance on how to manage their money. Most financial advisors choose to specialise in a particular area of finance such as mortgages, life insurance, retirement funds, accounting or investments.

What does a Financial Adviser do?

The role of a financial advisor will depend on their specialism. For instance, a financial advisor who specialises in investments (sometimes called an investment advisor) will help

their clients diversify their investment portfolios and make smart investment decisions that will increase their wealth.

Whereas, a financial advisor who specialises in pensions will suggest pension products and schemes based on their client’s retirement plans and financial goals.

What is a Financial Planner?

A financial planner is a type of financial advisor who helps individuals and businesses define their financial goals. They will work with you to create tailored financial plans and strategies to help you achieve your ultimate goals.

Financial planning adopts a long-term approach whereas financial advising is often a short-term solution.

What does a Financial Planner do?

A financial planner looks at all aspects of your personal and financial life, before creating a plan for your money. Financial advisors adopt a holistic approach to financial planning and look at the bigger picture, whereas financial advisors typically focus on a specific area of your finances such as investments, pensions, etc.

Working with a financial planner puts you in control of your finances and provides you with a clear roadmap to achieve your financial goals. A financial planner will build a financial plan that is tailored to your specific needs and goals. You will have a clear overview of where you are today and where you want to be, and you’ll be able to track your progress.

Key Differences between Financial Planners and Financial Advisers?

According to experts at SmartAsset, a financial advisor is anyone who helps clients manage their finances. They will focus on your money and your investments and usually recommend financial products and services based on a specific area of your finances e.g. investment.

On the other hand, a financial planner focuses on you and your financial goals. They will look at the bigger picture and create financial plans and strategies to help you achieve your long-term goals and turn your dreams into reality.

To summarise, a financial advisor will help you find a solution to a particular financial problem, while a financial planner will help you identify your financial goals and guide you on the best way to achieve them.

If you have a specific task or goal in mind, e.g. you just want to set up an ISA, then a financial advisor is probably the best option. Whereas, you should probably work with a financial planner if you want to take control of your finances and plan for your future.

Learn more with Prosperity Wealth: Independent Financial Advisers

At Prosperity Wealth, we have many years of experience providing expert financial advice across various areas including mortgages, investment, pensions, and more. Our independent financial experts will work with you to increase your wealth and guide you towards a brighter financial future.

Get in touch with us to discuss your financial goals and how we can help you build and retain wealth.


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