Finance Counselors vs. Finance Planners | Definition, Duties, Skills & Measure Differences

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INTRODUCTION

It today’s modern world we often come across some terms such as investment, mutual funds, hiring a financial planner, etc. and most of our familiar ones suggest we have our personal finance counsellors Vs. Finance Planners and make money from the existing money.

Have you just thought about learning who is a financial planner and who is a financial counsellor . And how they as a person are going to change one’s life. Have you?

So this article is just to help you with some financial concepts and make you aware about financial advisors and financial planners, what they have in common and on what terms they do differ from each other.

A STEP CLOSER… 

The first and foremost thing is the objective as an individual you are aiming at.

In a simple  language if your goal is to win a dance competition you will hire a choreographer to accomplish that goal.

In the same manner this is how financial planners and counsellors work.

Finance Cousellors

Finance Counsellor as the name suggests possess a counselling skill which is required to help the clients in managing their money. Finance Counsellors must have adequate knowledge and experience to guide the clients and support them as in where they should invest their money, how much they should invest, distribution of their investment etc. 

Before mentoring the clients, finance counsellors must be made aware of the client’s situation, their financial matters, goals and thereafter finance counsellors will properly analyse the client situation and on that basis he will guide them in the best direction possible.

It is more of a sales executive task to engage more and more clients to buy your firm’s investment and grow with those deals. 

For instance, a client is looking for investing his say, 1000 Rupees

Then the role of financial counsellor is to advise the distribution of 1000 rupees – to invest 500 in A sector, 150 in B sector and 350 in C sector. 

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Finance Planners

Talking about finance planners, they also work for clients to manage their finance accordingly.  Finance planners by the name only gives a clear glimpse of the work they do i.e. planning the finance or finance planning. Finance planning is basically a roadmap by following which you reach your destination. In simple words it is a framework or set of guidelines following which you will achieve your finance goals. It includes various concepts such as budgeting – setting up a proper budget, cutting expenses, maintaining a personal balance sheet to check the balance between your personal assets and liabilities, to use your surplus finance in the best possible manner in a judicious way and many more such concepts. 

Difference  between finance planners and finance counsellors.

The differences between both of them on some basis are given below

Priority

Financial advisors prioritise their working interest and ignore client’s interest no matter how best or worst it can result in.

On the other hand financial planners put more emphasis on the client’s interest, look from the client’s perspective, sometimes overlook his working institution’s interest and provide the best option to look for.

Type of clients 

Finance advisors serve audiences having lower income or serve clients whose financial position is not good enough in interest of pulling them out of debt they are facing. On the other hand finance planners focus on the higher income level audience whose financial position is pretty amazing!

Goals

Financial counsellors help the clients to meet small financial objectives such as in paying the debt, reduction in medical bills, maximizing tax refunds and such small level goals.

Finance planners on the other hand enables the clients to meet huge and big financial goals often counted as luxurious ones such as buying a house, maintaining a retirement fund and collecting money for education purposes as in to putting children to colleges and furthermore studies.

They keep an eye whether the client is on track of all his goals, small goals – objectives. They monitor the financial activities in order to accomplish the target. Thereafter after monitoring they allow an action as in cutting over spending or saving a little more.

And finally they give you a decision as to what to do and what not to do.

A POINT TO NOTE… 

Here is a thing that while a financial planner is the universe of all the galaxies, Finance counsellors is a symbol of a planet as a whole. 

In other words, 

All financial planners can be financial counsellors but vice-versa in not true i.e. All financial counsellors can not be financial planners.

Hope so you found the article helpful, and also got to learn a little about financial planners and financial counsellors.

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