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What Is the Difference Between a Wealth Advisor and a Financial Planner? Thumbnail

What Is the Difference Between a Wealth Advisor and a Financial Planner?

When you are a high net worth individual or a high earner not rich yet (HENRY), it can feel overwhelming trying to figure out how to best manage and invest your money. Hiring a professional can help a lot. They know the market and have training in handling finances, so they can show you what you might not be able to see when making financial decisions.

There are so many types of financial professionals out there. How do you know which kind to hire? Two of the ones you might hear about the most often are a net worth advisor (also called a wealth advisor or a financial advisor) and a financial planner. While they have many similarities, there are also some key differences between the two that could help you determine which one to hire. This blog aims to cover just that, including the benefits of hiring a financial advisor over a financial planner and vice versa. Before we get to that, though, let’s take a look at what wealth advisors and financial planners each do.

What Exactly Does a Financial Advisor Do?

A financial advisor is someone who helps you manage your assets. They not only help you figure out how to save your money, but also how you can invest it to achieve your financial goals and live the life you dream of. Specifically, they can help with:

  • Taxes: As long as your financial advisor is certified in doing taxes, they can assist you with them so that you don’t make costly mistakes. This is especially helpful if your taxes are typically complicated. On top of that, financial advisors can also teach you to avoid paying unnecessary or high taxes.
  • Planning for the Future: If you have a big purchase or event planned, such as buying a new house or planning a wedding, a financial advisor will help you come up with a strategy to help you pay for such expenses without affecting your normal quality of life.
  • Business Investments: If you have a business or plan on starting one, a financial advisor will counsel you on ways to increase return on investment and decrease unnecessary spending.
  • Real Estate: If you’re interested in investing in real estate, a financial advisor will take a look at your financial history and goals to give you a plan for finding the right properties to reach those goals.
  • Increasing Long-term Wealth: Once you tell your financial advisor what your goals are, they can advise you on what to invest in and how much to invest to help you reach those goals. They will consider your willingness to take risks when giving you investment advice.
  • Retirement Planning: It is never too early to start saving for retirement. If you want to keep the same quality of life once you retire, a financial advisor will help you plan for that.
  • Life Insurance: Some financial advisors can sell you life insurance to protect your loved ones from financial burden once you’re gone.
  • Estate Planning: Just as life insurance lets you take care of loved ones after you die, so, too, does estate planning. Financial advisors will guide you in creating a plan that makes sure your loved ones get what you want to give them without paying hefty taxes on it.

The financial advisors at Delta Wealth Advisors use evidence to create portfolios based on our extensive knowledge of the market as well as your personal finances. We will also continue to monitor your finances so that we can change strategies as your net worth grows. You won’t have to worry about your finances when you hire one of our advisors.

What Does a Financial Planner Do?

A financial planner is a type of financial advisor. Like other financial advisors, they assist with the following tasks:

  • Taxes
  • Planning for the future
  • Increasing long-term wealth
  • Retirement planning
  • Estate planning

Some may also promote and/or sell financial products (such as loans and banking accounts).

Financial Planner vs Advisor: What’s the Difference?

The key difference between what financial planners and financial advisors do comes down to how specific their responsibilities are. Whereas a financial planner focuses on helping you save and invest money to achieve the financial goals you strive for, a financial advisor assists you with all parts of your financial portfolio. Financial advisors are not only concerned with saving and investing your money, but also with protecting the money you already have.

You may be wondering, then, Do I need a financial advisor or a financial planner? The answer comes down to how much assistance you would like with your finances. While a financial planner may give you advice but leave you to make your own decisions, a financial advisor will give you advice and, if you agree to it, can even make investment decisions on your behalf. If you have complicated finances or just don’t want to worry about stressing over your own finances, the benefits of hiring a financial advisor outweigh the benefits of hiring a financial planner.

Where can I find financial advisors near me, you might ask. The answer is at Delta Wealth Advisors.

Find the Best Financial Advisors Around at Delta Wealth Advisors

If you’re ready to take the plunge and hire a financial advisor, turn to Delta Wealth Advisors. Our dedicated team communicates with high net worth individuals and HENRYs who hire us to help you face any unexpected changes to your finances that might arise and grow your wealth. If you tell us what you care about and what you spend money on, we can ensure that your investment strategy aligns with those values.

Whatever financial journey you plan to pursue, we are here to get you on your way. Our financial advisors are fiduciaries, meaning we will act in your best interest when investing or making financial strategies. Schedule a call with us to make achieving your financial goals easier.