Finance: What's the difference between a financial advisor and a financial planner?

What is the difference between a financial advisor and a financial planner? A financial advisor can be anyone who works in the financial industry and provides help with finance management. A financial planner is a specific type of financial advisor who helps individuals and businesses create a financial plan that aligns with their ultimate financial goals.

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Transcript

00:27

are financial planners okay so the financial planner what do they do they

00:31

plan financially what does that mean? while the planner looks at your budget

00:35

your rent your insurance your likely taxes and a whole bunch of other little [Financial planner duties appear]

00:39

detailing things that you could probably do entirely on your own if you thought

00:43

about it for five minutes but whatever trauma happened to you and [Man with injuries laying on couch]

00:47

your childhood rendered you somehow incapable of doing so and you called in

00:51

Mommy financial planner who held your hand and help you fill out whatever

00:54

forms establish whatever goals and create whatever programs you needed to

00:58

create whether you're an individual pediatrician, a small business or

01:03

something bigger well financial planners come in a bunch

01:06

of certificated flavors like certified financial planner yeah that's a big

01:11

catchy one and then there's corollary sidebar ones like chartered financial

01:15

consultant and for the really heavy hitter investment planning people well

01:19

there's a chartered financial analyst levels one two and three which is the

01:23

full contact x-rated version of being a hardcore financial planner so then [Types of financial planner appear]

01:28

what's a financial advisor or FA? or FAH as the Dolphins like to call them well

01:34

essentially they are your investment whisperer

01:37

they sit on your left shoulder and your right shoulder whispering about greed [Angel financial planner whispering on mans shoulder]

01:41

and fear and have nothing to do with that scene in Animal House and if you

01:45

don't know what we're talking about go ask your parents right now hit pause go

01:48

ask them.... greatest college movie in history thank you

01:51

specifically a financial advisor is typically a broker in one form or

01:54

another who directly helps execute purchases and sales of securities while

01:59

knowing a thing or three about estate and tax planning, insurance and other

02:03

financial adventures like the joys of owning real estate so a FA must have a

02:08

series 65 license or more the good ones have all passed the series

02:12

seven exam which is the granddaddy and a few are also CPAs i.e hardcore

02:18

accountants if you like not just counting beans but swimming in them well [Man jumps into pool of beans]

02:22

then these are both probably good gigs for you