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Should I Use A Financial Planner Or An Investment Adviser?

As a Canadian, you have many options when it comes to managing your finances and making investments. But with so many choices, it can be difficult to know which path to take. One common question that many Canadians face is whether to use a financial planner or an investment adviser.

A financial planner is a professional who helps individuals and families make informed decisions about their finances. This can include creating a budget, setting financial goals, and developing a plan to achieve those goals. Financial planners are typically trained in a wide range of financial topics, including insurance, taxes, retirement planning, and estate planning.

An investment adviser, on the other hand, is a professional who provides advice on investments. This can include selecting individual stocks, bonds, mutual funds, and other investment products. Investment advisers are typically trained in financial markets and can help clients develop a personalized investment strategy.

So, which option is right for you? 

The answer depends on your individual circumstances and financial goals. Here are some factors to consider when deciding between a financial planner and an investment adviser.

Your Financial Situation And Intent Should Be The Driver

If you’re just starting out in your career and don’t have much saved for retirement or other financial goals, a financial planner may be a good option. A financial planner can help you develop a plan to get on track, including setting savings goals and creating a budget. An investment adviser will mostly propose investments.

Your Investment Experience Might Require You An Investment Adviser

If you have a lot of experience with investing and are comfortable making your own investment decisions, an investment adviser may be a better fit. An investment adviser can provide guidance and advice, but ultimately you’ll be responsible for making your own investment decisions. If you go that route, be sure to come prepared with questions to ask an investment adviser.

Your Financial Goals May Require A Financial Planner

If you have specific financial goals, such as saving for retirement or buying a home, a financial planner can help you develop a plan to achieve those goals. A financial planner can also provide advice on insurance, taxes, and other financial topics that may affect your ability to reach your goals.

Your Risk Tolerance Is An Important Factor

Investing always involves some level of risk, and different people have different tolerances for risk. A financial planner can help you understand your risk tolerance and develop a plan that is suitable for your needs. An investment adviser can also provide guidance on investing based on your risk tolerance.

Overall, the decision to use a financial planner or an investment adviser depends on your individual circumstances and financial goals. Your final intent should be driving the decision here. A good financial adviser might help you plan better and an investment adviser will propose investments. Both professionals can provide valuable advice and guidance. The right option for you will depend on your unique situation.