Financial Professionals vs. Financial Experts
When it comes to managing your money, it can be confusing to decipher who the right person is to turn to for guidance and advice. In a world full of titles, such as financial professionals, financial advisors, and financial planners, it can be challenging to know which one is the right fit for you. In this blog, we will examine the differences between financial professionals and financial experts and help you understand which one may be the right choice for you.
Financial Professionals
Financial professionals generally work in a sales capacity and are responsible for helping clients choose investments, stocks, bonds, or annuities for their portfolios. While they may have some knowledge of the market, they are not necessarily trained in finance or investments and they are primarily incentivized to sell to clients. Brokers, financial consultants, and insurance salespeople all fall under this category.
Financial professionals often work for large financial institutions, such as banks or brokerage firms, and may have quotas and sales targets to meet. They are not always required to put the client's best interest first, unlike financial experts who are held to a fiduciary standard.
Financial Experts
Financial experts are trained and experienced professionals who work in all areas of finance, including investments, taxes, retirement planning, and estate planning. They are required to complete extensive education, training, and certification requirements to become an expert in the field. Furthermore, they are also held to a fiduciary standard, meaning they must always act in the best interest of their clients.
Financial experts are professionals such as Certified Financial Planners (CFP) or Chartered Financial Analysts (CFA), who provide comprehensive financial advice that is personalized and tailored to their client's goals and needs. They take a holistic view of their clients' finances and provide advice on investments, tax planning, estate planning, and retirement planning.
Financial experts have the expertise to understand the complex and ever-changing financial markets and can provide guidance on how to navigate risks and opportunities. They seek to grow their clients' wealth, while also minimizing risks and maximizing their clients' savings potential.
Which one should you choose?
When it comes to deciding between a financial professional and a financial expert, it is essential to determine what kind of help you need. If you only need investment advice or assistance purchasing stocks or bonds, a financial professional may be the right fit for you. However, if you are looking for a comprehensive approach that includes tax planning, estate planning, retirement planning, and investment advice, a financial expert may be the better choice.
It is also important to consider the fiduciary standard that financial experts are held to. They must always act in their client's best interest, which means they are not incentivized to sell products or take on unnecessary risks to generate commissions. Their interests are aligned with their clients, and they aim to help them grow their wealth while minimizing risks.
Our team at Mooney Lyons includes CFPs, ChFCs, CEPAs, BFAs and other credentialed professionals who are dedicated to helping our clients be financially fit for life. Speak with us today about your financial questions and goals.
