Do you know the difference between a Financial Planner and a Money Manager? They are not interchangeable. It is important to know what kind of professional services you are signing on for and what you can expect. While educating clients is part of what a Fee-Only financial planner does, you might feel better if you begin a relationship with a financial professional already knowing where his or her focus lies.
Money Managers focus on the money. This is not to say that they are not interested in pleasing clients, but to say that their directive is to help clients increase their assets. Outside of steering you toward investments, a money manager is not necessarily going to provide guidance on how you spend your money. And those that do provide guidance on things like taxes or insurance may not have had a lot of training in helping clients make these choices.
A Fee-Only financial planner is there to help guide you towards financial practices that can help you reach your goals in life. And in some cases, a Fee-Only financial planner may help you outline those goals. For example, clients of Clarity Financial Planning benefit from working with an advisor who takes an all-inclusive approach to financial needs and provides guidance on:
▪ Investment strategy
▪ Retirement planning
▪ Cash flow and recordkeeping
▪ Insurance review
▪ Estate planning
▪ Tax preparation and planning
“The unique perspective of ACA members comes from being able to advise a client from a comprehensive view of their situation, which requires a higher level of credentials than is available in a field dominated by sales people. We can include tax advice along with investment strategies, sensible insurance approaches to enhance estate planning, etc.”