Today's Financial Planning Profession

Today’s financial planning profession is very different from the profession of the past. This profession is all about “give-backs” and truly making a difference. This chapter makes a key distinction between individuals working as a financial planner and as a financial advisor. A financial planner is a professional who helps companies and individuals create a program to meet long-term financial goals and objectives, whereas financial advisor is one who helps manage client money, including investments and other financial accounts. Many firms in the financial planning profession follow the accounting profession model using a planning-centric firm model with a differential in price. Many of the larger firms are moving toward holistic planning. Holistic financial planning is the process of pursuing life goals through the proper management of resources. Planners should develop working relationships with other professionals to assist in the planning element, especially in the later stages of life.