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OneDigital Leader Discusses What is a Financial Planner vs. Financial Advisor

Financial planners and advisors can perform similar tasks, but they are in no way the same.

It’s essential to understand your scenario to know whether you need a planner or advisor. Understanding the differences between an advisor and a planner has a few key variables to keep in mind. Sean M. Ciemiewicz of OneDigital Retirement + Wealth remarked in the Business Insider article, “Financial Planner vs. Financial Advisor," the qualifications required for financial planners are different than advisors. As stated in the article:

"Ciemiewicz adds Financial planners aren't required to be licensed to implement financial plans. If they aren't, they can work with consultants, advisors, and those who are licensed to make specific transactions to service their clients. In these cases, financial planners take on a coordination role, ensuring plans are executed correctly.”

Besides qualifications, one of the significant differences is that a financial planner takes a holistic view of your finances. In contrast, advisors are much more focused on your investments.

"A financial planner will often assist a person or household with a personal financial plan, including helping to plan and consult on financial matters such as budgeting and spending, debt management, savings and retirement planning, estate planning, insurance planning, etc.,"
Sean M. Ciemiewicz, Senior Vice President, OneDigital Retirement + Wealth

To learn more about the pros and cons of each, read the Business Insider article here.

Want to read an article from a OneDigital Financial Mentor? Check out his recent article: 7 Tips from Year-End Tax Planning.

Investment advice offered through OneDigital Investment Advisors, an SEC-registered investment adviser and wholly owned subsidiary of OneDigital.