Financial Planner – Definition

Cite this article as:"Financial Planner – Definition," in The Business Professor, updated September 17, 2019, last accessed October 24, 2020,


Financial Planner Definition

A financial planner is a professional with expertise and experience in tax planning, investment planning, estate planning, asset planning, insurance planning, asset management, risk management, business succession planning and retirement planning.

Basically, a financial planner is a finance and investment professional that helps organizations and individuals prepare plans to meet their financial goals and objectives. This professional evaluates the financial status of businesses and individuals so as to draw a suitable plan that resonates with their goals.

A Little More on What is a  Financial Planner

Typically, a financial planner is a qualified professional that renders financial planning services to individuals, firms or organizations. Before an individual can be called a financial planner, he must have met certain qualifications and education requirements which includes passing a professional exam. Financial planners who have been certified by the Registered Financial Planner Institute (RFPI) are called Registered Financial Planners.

The Certified Financial Planner Board is another institute that certifies financial planners, the are called Certified Financial Planners. All financial planners are expected to act in the best interests of their clients and give honest and professional financial advice.

Depending on the types of financial planners, their duties vary, although all financial planners retain a central purpose which is to offer financial planning services to their clients and act in their best interest. For instance, Registered Investment Advisors (RIAs) offer investment planning services that favor their clients. Their fiduciary duties are contained in the 1940 Investment Advisor Act. Oftentimes, financial planners are fee-only advisors which means they get their money based on the service they render to clients.

Choosing the Right Financial Planner

There are certain qualities that you should look out for before choosing a financial planner. Clients are often advised to interview as many financial planners as possible in order to choose the best. Here are important things you ought to consider when choosing a financial planner;

  • Their credentials, qualifications and professional certification.
  • Area of expertise
  • Fiduciary specifics
  • Experience and integrity of the planner
  • Service fees and charges.

The CFP Board of Standards also provide guidelines that clients can follow when choosing a financial planner. The National Association of Personal Financial Advisors (NAPFA) and the Financial Planning Association (FPA) also link clients with their preferred financial planners.

References for “Financial Planner”


Was this article helpful?