What is the Distinction between Financial Advisors and Financial Planners?

When you seek help in your financial management, ensure that you are choosing a professional who is compatible with your needs and is able to assist you with your financial future. This article will help in differentiating between the roles of financial advisors and planners. The key distinction between the two are the training, education and services offered.

Financial Advisors

Financial advisors tend to offer fee based services, they earn commission on the products they sell. They help in money associated tasks like brokering sales, investing management, buying stocks or funds and creating tax plans. Financial advisors tend to pass some examinations which are administered by the Financial Industry Regulatory Authority.

Financial Planner

When it comes to the financial planners, they are also required to pass some examinations administered by the Financial Regulatory Authority, however, not all advisors and planners are necessarily certified to the same level. In order to use the CFP® designation, the financial planner must have a certain education, pass some examination, have some experience and requires some ethics as well as pay an ongoing certification fee. A certified Financial Planner professional must meet certain requirements and gain extensive knowledge in risk management, investments, tax law, estate planning, and investment etc. They must also be able to meet the standards of the CFP® board in mainly 4 categories, such as education, work experience, that is, three years in the financial planning field, ethics, and pass the CFP® examination.

In order to become a Chartered Retirement Planning Counselor which is also termed as a CRPC® designee, your financial planner must be quite well-acquainted with the knowledge of retirement planning. Apart from accomplishing a study course and an examination from the designated college, these professionals are then trained in many sources of retirement cash flow, retirement income, asset management, estate planning, and other associated topics. You should even consider employing a professional with the CFP® designation if you are seeking someone to manage your investments like a pro or help you with the financial planning and someone with a CRPC® when it comes to planning for retirement.

At Sirius Solutions, one of the most glorifying Financial Consulting Firms is equipped with teams of experts with combined experience in the financial services industry. Our expert like financial advisors, certified financial planners offer you with personalized and comprehensive financial planning that thrives to deliver our services to your families for generations and generations.

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