Tags: financial adviser, financial planner
Category: Financial Planning
Clarion Chartered Financial Planner Ella Davies examines the confusion that sometimes surrounds the distinction between a Financial Planner and a Financial Adviser
This is something I very rarely get asked by my professional network. I think there is a common misconception that the two are very similar, however this couldn’t be further from the truth.
A financial planner is a professional who helps individuals and families create a strategy to meet long-term financial goals. Financial adviser is a broader term for those whohelp manage your money, including investments and other accounts.
A Financial Adviser will:
- Tend to focus on investment returns
- Provide transactional or product-led advice
- Work on a short-term basis. The length of engagement may be short, and once the right product is sourced the relationship may become very light touch
- Will provide advice with a narrow focus, for example, the need for a pension or life insurance
A Financial Planner will:
- Focus on your goals, both short and long term
- Involve wider family members
- Prioritise understanding your objectives, what you are looking to achieve and where you want to get to
- Implement a financial roadmap for your family, detailing how you can achieve your goals. This will be carried out through cashflow planning
- Establish a long-term relationship, reviewing the strategic plan at least once a year
- Adopt a holistic approach
- Work with other professionals (eg tax advisers and solicitors) to ensure a collaborative approach is adopted by all parties
- Make use of financial products and investments where appropriate in the financial plan
In summary, a Financial Adviser tends to focus on a single problem, rather than the bigger picture. In contrast, a Financial Planner will provide holistic, bespoke advice, helping you work out what you want from life and implementing a financial plan to ensure you get there.
A Financial Planner puts you in control of your finances, providing you with clarity and confidence. They will create an overarching strategy which may include financial products, such as an ISA or a pension, however, these are simply tools needed to facilitate the planning.
I am pleased to say that here at Clarion we fall safely within the Financial Planner definition, providing true, lifelong, holistic advice to our clients, some of whom have been with us for over 30 years.
Clarion Wealth Planning are Chartered Financial Planners, specialising in true lifelong financial planning and investment management.
Experience true lifelong financial planning at our cost: email [email protected] to book a free initial consultation meeting, which is backed by our Clarion Guarantee.
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