Financial Planner vs Financial Advisor
The difference between a financial planner vs a financial advisor can often confuse people. Unfortunately, the financial services industry uses a lot of different titles for the people in it.
Different Names for People in the Financial Services Industry
Registered representatives of a broker-dealer would be people at Merrill Lynch, Wells Fargo, or Edward Jones. There are also investment advisor representatives. These are independent advisors, who can be fiduciary, fee-based, or fee-only advisors working for independent firms, such as registered investment advisory firms (RIA). Though not very straightforward, it is how the SEC and FINRA divide up the titles. The general public often gets confused because of how the different titles are used in marketing. They might call someone an advisor, a financial planner, a financial advisor, a wealth advisor, or a wealth manager.
Financial Planner vs Financial Advisor
Ultimately, it’s not the title that matters but the kind of service a firm offers its clients. An investment advisor representative (IAR) who might call themselves a wealth manager, financial planner or financial advisor, usually does more than just assets under management. They also act as a financial planner who takes a look at your insurance, 401k allocation, tax strategy, estate planning as well as can manage your assets. All of those things are typically done by a financial planner, who’s usually a wealth manager at an investment advisory or a registered investment advisory firm (RIA).
Don’t get caught up in the title that they’re using at the firm. More so, look into how the firm is structured. Is it a fiduciary firm? Is it a fee-only or a fee-based firm? These are two very different things. Fee-only means they’ll work in your best interest and won’t try to sell any products. Fee-based means they may offer financial planning, but afterward will probably try to sell you an insurance product. Regardless of titles, a fiduciary, fee-only advisor is always in going to give you advise that is in your best interest.
Download our eBook: “Top Reasons Most Financial Plans Fail”
Have more questions? Contact Us
Casey Smith
President, Wiser Wealth Management
Click here to schedule a consultation with one of our financial planners.
Listen to Our Podcast:
Recent posts
Share This Story, Choose Your Platform!
Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). As a registered investment adviser, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment adviser’s registration.
Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.
To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.