The terms "financial advisor" and "financial planner" are often used interchangeably, but they actually refer to two distinct professions. Here's a breakdown of the differences between the two:

Scope of services: Financial advisors typically focus on helping clients manage their investment portfolios. They may offer advice on selecting investments, developing investment strategies, and monitoring the performance of investments. Financial planners, on the other hand, take a broader approach to helping clients achieve their financial goals. They may offer advice on a range of topics, including budgeting, retirement planning, tax planning, estate planning, and insurance.
Credentials: Both financial advisors and financial planners may have a variety of professional credentials, such as the Certified Financial Planner (CFP) designation, which requires passing a rigorous exam and meeting ongoing education requirements. However, financial planners may have additional certifications and designations, such as the Chartered Financial Consultant (ChFC) or the Chartered Life Underwriter (CLU), which can indicate a deeper level of expertise in specific areas of financial planning.
Compensation: Financial advisors are often compensated through commissions or fees based on the assets they manage. This means that their compensation may be tied to the investments they recommend to clients. Financial planners, on the other hand, may charge a flat fee or hourly rate for their services, which can provide more transparency and avoid conflicts of interest.

In summary, while both financial advisors and financial planners can provide valuable guidance on managing your finances, financial planners tend to offer a broader range of services and may have a more holistic approach to financial planning, while financial advisors may focus more on managing investment portfolios. Additionally, financial planners may have more specialized credentials and are often compensated differently than financial advisors.

-Michael Proctor