Financial Planner vs Advisor

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Financial planner vs advice – Having an awareness of organizing and making financial planning is one of the important things that anyone does. The reason is, that by having good financial planning, you will avoid or be able to minimize financial problems that have the potential to occur at any time.

Not infrequently, we ultimately need help from professionals who do have extensive knowledge about finance, such as financial advisors or financial advisors. The term financial advisor itself is often used interchangeably with the term financial planner or financial planner. So, what is the difference between a financial planner and a financial advisor? Let’s take a look at the review!

Financial Planner vs Advisor


Financial Planner

The Financial planners are a type of financial advisor. Financial planners are tasked with creating programs that aim to achieve long-term financial goals. A financial planner is also divided into several different specialties, some focusing on investment, taxation, retirement funds, or real estate planning.

Financial Advisor

In many cases, consumers who need a professional to manage their finances will get help from a financial advisor. For example, a financial advisor will help you manage your finances when it comes to buying investment instruments or helping with a tax plan.

A financial advisor can have different credentials, depending on what realm they want to focus on. So, it can be concluded that financial advisory is a general term that surrounds several groups, it can be such as insurance agents, real estate planners, financial managers, and financial planners.

Before you do a financial plan, you should know what a financial goal is first. For more details about financial goals, let’s continue to look at the following reviews.

What is a Financial Goal?

Financial goals are targets that want to be achieved, to make it happen requires a considerable allocation of funds. Examples are owning a house, marrying at their own expense and sending children to a good school.

Types of Financial Goals

Emergency Fund

In living a life, sometimes unexpected things can happen. For example, your favorite smartphone is suddenly lost on the go or your laptop for work is damaged by a fall.

Of course, inevitably you have to spend funds that were not previously planned to buy a new smartphone or laptop. If not, of course you will find it difficult to get in touch with colleagues or colleagues.

Well, by having an emergency fund, you can quickly deal with this urgent situation. You will no longer be dizzy when you have to spend an unexpected budget because emergency funds are provided to meet it.

Pension Fund

For those of you who work formally in the company, you may have obtained a pension fund program from the company or the Social Security Organizing Agency (BPJS). However, you also need to take into account whether the amount of funds obtained will be enough for retirement later.

The financial purpose of this pension fund, can not only be used for purposes in old age. However, you can also use it to travel to dream destinations or worship like Umrah.

Savings Fund

Of course, you also have to have current assets such as savings, which can be taken and deliberately saved for certain purposes. In addition to meeting daily needs, of course, often you want to do other things that require funds, such as vacations, shopping, or buying gadgets.

Be sure to meet the above needs, you do not take money from other sources of funds. Why is this mandatory? Because, with this fund you can give your own appreciation after successfully fulfilling other mandatory funds.

Investment Fund

Having an investment fund is a solution to manage money and avoid being eroded by existing inflation. Investments can also provide greater profits, so it will increase the amount of funds you have.

How to Find a Financial Planner

Research and Recommendations

You need to do your research online first. Often, recommendations from those closest to you become the best way to find the right financial planner. Ideally, you should ask friends or family who share the same goals and strategies about finances. This will help you to find the right financial planner.

Review Financial Planner Information

Gather information from several financial planners before deciding on a financial planner. It is also important to know the commission for each financial planner. Each company must also disclose fees or commissions paid to the financial planner.

Financial Planner Interview

You should interview a financial planner before choosing. And You should find a financial planner who makes you comfortable and can listen to you carefully. You should also make sure the financial planner you choose is a certified financial planner. For example, a good financial planner will suggest products and services to help you meet your goals.

How to Find a Financial Advisor

Understand the Types of Financial Advisors and Their Services

There are financial advisors who offer financial planning services but not for investment arrangements, there are also those who offer investment arrangement services, but only a few for financial planning. In addition, there are financial advisors who offer retirement fund income planning with different focuses.

To find the financial advisor that best suits your situation, then you need to understand the differences in the offers of services provided, know which financial advice you need and know the services provided by the financial advisor.

Find a Trusted Financial Advisor

There are institutions that hold a training to give a degree of credibility to someone to make people an expert, namely by conducting training. Any financial advisor who attends the event must pay.

Knowing the Cost of a Financial Advisor

Many financial advisors can pay a fee. The most objective and trusted financial advisor is paid. To use his services, you need to know that there is compensation costs to be paid, it can be an hourly fee, participation in giving commissions and so on.

You should understand the difference between an appropriate advisory fee and one that does not fit your needs. Only certain advisors can receive honors based on the goals they want to achieve or projects.

Ask a Few Questions Before You Use His Services

There is a list of interview questions in determining how the financial advisor communicates, his area of expertise as well as his competence. The key to the question asked should be understandable to you. Ask questions you understand. Do not ask questions that you do not understand what they mean or do not know what the meaning of the answer is.

How to Set Financial Goals

Let’s Know How to Set Goals with Some Elements As Below:

Determine how you will measure success

If you want to move from a sales job to a marketing job, you can set milestones that address how to develop the skills and experience that marketing companies are looking for. To do this, you can set your measurements as learning and focus on one skill per month.

Check If Your Goals Are Achievable

Setting goals that you can achieve within a reasonable period of time will help you stay motivated and focused. You should work to understand the full scope of your previous goals to ensure they are possible to achieve. If you find that a goal is unattainable because you don’t have enough experience, one of your new goals is to gain more experience.

Make sure your goals are relevant

You should set goals that align with your values and contribute to your long-term goals. Every goal you set should be relevant and meaningful to you, getting you closer to the direction you want to be.

To make sure you set relevant goals, you might ask yourself, how will achieving these goals help me? Does the achievement of this goal contribute to my larger long-term goals? Why is this goal important to me?

Short-Term Goal Planning

Short-term goal planning is planning that covers a period of up to one or two years and does not require very detailed details.

Medium-Term Goal Planning

Medium-term planning is planning that is carried out over many years, this planning is an elaboration of long-term planning and needs to be described in short-term planning.

Long-Term Goal Planning

Long-term planning is planning that has the recommended goals and actions that include a longer period of time, at least five years and requires more detailed consideration to be more mature.

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Examples of Financial Goals

  • Short-term goals for example: Planning our basic needs every day or every week.
  • Medium-term goal for example: I will save more money for my birthday.
  • Long-term goals, for example: National development programs.
  • Ready to Make Your Financial Goals?

You probably won’t make perfect linear progress to achieve your goals, but the important thing is to be consistent. You can review and update your goals or monitor your progress in achieving them throughout the ups and downs of life.

In the process, you will find that the little things you do every day and every month and the big things you do every year and for decades will help you achieve your better financial goals. Thus the article I can make about financial planners vs. advisors is hopefully useful, thank you.

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