6 Key Differences Between Various Financial Professionals You Need To Know About

white printer paper
Photo by NORTHFOLK on Unsplash
Spread the love

Financial planning requirements can come in many different ways in life, regardless of your age or status. Maybe your meticulous personality just wants your budget to be streamlined, or you might be just planning for retirement. Either way, you will seldom find the lack of financial experts out there. 

There is an abundance of financial professionals out there. Each individual or family will have a unique set of requirements when it comes to financial advice. Just like there are divorce lawyers for divorce cases and lawyers who specialize in elderly law, there are myriad kinds of financial advisors for you to choose from.

In this post, we will see some of the most common and important designations and certifications that different types of financial professionals hold. This will help you choose the right professional who can cater to your specific requirements.

laptop computer on glass-top table
Photo by Carlos Muza on Unsplash

The Basic Role of Financial Advisor in Daily Life

Your next-door financial advisor will be the person who guides and(or) aids people to manage their financial affairs. Handling someone’s money is a job that requires extreme trust and authenticity. For this very reason, you can measure up the job of a financial advisor to that of a doctor or a lawyer. All matters that concern any of these three categories have a high impact on a person’s life.

black flat screen computer monitor
Photo by Nick Chong on Unsplash

Financial Planners and Investment Advisors

Often, you visit a general practitioner when you have a headache or the flu. Sometimes you might feel the need to see someone specific such as a pediatrician for your kid or a cardiologist or an ophthalmologist. Similarly, the word financial advisor is more of a general descriptor. 

Nonetheless, financial professionals can come in many forms. While a stockbroker sells stock and securities for a commission, an investment advisor’s expertise revolves around things like risk analytics and research. Then there are financial planners who are experts with a unified approach for advising and managing people’s finances. Sometimes certain families that are fortunate enough to hold excess wealth will seek an advisor that has experience in the investment sector. Expert investment advisors can guide you through setting goals and distributing wealth in safe holdings depending upon your life goals, risk tolerance and expected returns. 

CFP, Ch. FC & RIA

If you would like to know more about the competency of a financial planner, here are a few details you should consider.

Chances are you have already heard about this, a financial professional should be a CFP or Certified Financial Planner. A CFP is an approved professional that holds highly ethical and stringent functional levels. You can safely assume that an authentic CFP will have enough financial planning experience in regard to areas like taxes, real estate planning, insurance, retirement etc.

A more sophisticated type that usually works with commercial clients would be a Ch. FC ( Chartered Financial Consultant ). They usually cater to small and medium-sized business affairs that operate. Although the capacities and working styles of a CFP might look similar, a Chartered FC’s clientele can significantly vary. 

In contrast to the above, you will find some financial advisors distinguished as RIA ( Registered Investment Advisors). Their expertise generally covers more complex financial matters such as providing advice on future investment-related things like mutual funds, stocks, bonds and other securities. They are usually experts who research and predict market situations in order to seek maximum profit while selling or buying stock and other investments.

To Summarize

So if you are looking to seek expert advice and knowledge from a reputed financial advisor in Atlanta, you will first have to be clear about your specific requirements. In the end, everybody’s financial circumstances and needs are unique. Whichever kind of financial advisor you choose must be best suited for your required solutions. An ethical financial advisor will work to the best of their capabilities to serve your interests and provide you with dispassionate advice to help you figure out solutions concerning your finances.

Be the first to comment

Leave a Reply

Your email address will not be published.


*