In the Financial Planning space in Australia the words Financial Planner and Financial Advisor are used interchangeably. We mostly refer to our Financial Planners as Financial Advisors because they each have additional financial skills and training. It may seem that when people reference a Financial Consultant vs Financial Planner vs Financial Advisor (or any other financial title), that they’re referencing the same person, and you’re not wrong. But, the person you’re asking may not be entirely correct for your needs either.
So, what’s the difference between a Financial Planner vs Financial Advisor?
Basically, any professional that can help you manage your money in some fashion can be considered a financial advisor. A financial planner, on the other hand, is a financial advisor within a specified area of interest such as financial planning.
Financial Planner
If your goal is to create a program to meet long-term financial goals, then you probably want to enlist the services of an experienced, degree qualified financial planner. You can look for a planner that has a speciality in investments, retirement or estate planning.
Financial Advisor
A financial advisor is simply a broad term to describe a professional that can help you manage your money. They may broker the sale and purchase of your stocks, manage investments, and help you create a comprehensive tax or estate plan.
It is important to note that either a Financial Planner or a Financial Adviser are expressions referenced in the Corporations Act, Section 923C. To use these restricted words or expressions whilst providing advice to the public they must be covered by an Australian Financial Services License (AFSL).
Remember, it’s not necessarily the difference between a financial planner vs financial advisor. A financial planner is considered a type of financial advisor that holds specific certifications. And, different financial advisors service different areas of the financial spectrum so make sure you’re prepared to ask questions relating your own financial situation before just picking one.