What Does A Financial Planner Do That I Can’t?

Looking for a financial planner? What does a financial planner do that I can’t? Are those your questions? Read this article thoroughly, the answer is there for you.

What Does A Financial Planner Do?

You might be curious about what financial planners do? Well, they combined their knowledge with analytical tools and data, that way they will illustrate your potential outcomes.

Knowledge such as personal finance, budgeting, taxes, and investments, so they are able to give you financial recommendations, either for asset allocation, risk management, retirement, estate, or tax planning.

So, in case you wonder what does a financial planner do for you, that statement can answer it.

Ever wonder what’s the difference between a financial advisor and a financial planner? Well, the simplest answer is all financial planners are also financial advisors, but not all financial advisors are financial planners.

What Do Financial Planners Do That I Can’t?

First of all, some financial planners hold Certified Financial Boards of Standards or CFP Board for short.

Therefore, they can hold CFP professional designation to work their magic based on their knowledge and qualifications. Either they want to work with individuals, families, or even corporation

More on that, a financial planner is considered a fiduciary. What does that mean? They are legally bound to act in their client’s best interest, while can’t make a personal benefit from managing their client’s assets.

Two Categories of Financial Planners

There are two categories for financial planners that you need to know.

1. Fee-Based Financial Planners

They are charged a flat rate, if not by the hour, by the project, or by the assets under management or AUM for short.

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2. Commission-Based Financial Planners

They make income not just from fees, but also through commissions if they succeed to sell certain financial products and from the open accounts on their clients’ behalf.

Questions You Should Ask If Want to Find the Right Finance Planner

If you want to find the right financial planner, then ask these questions below to your potential financial planner.

  • What are their credentials
  • Can they provide a reference
  • How much is your fee
  • What is their area of expertise
  • What kind of service are they offer
  • How will they settle disputes
  • What does a financial planner do for you

Sum Up What Does a Financial Planner Do That I Can’t

They have the knowledge and ability to help you with various aspects of your financial life, such as investments, insurance, retirement savings, college savings, estate, and tax planning.

Not only that, there is also a financial planner that is not only preparing plans for you, they also sell insurance, investments, and other financial products you can imagine. So, good luck in finding the right finance planner.

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