The Truth About Financial Advisors vs. Planners: What You Need to Know

Today we're diving into a topic that's got the financial world buzzing: the difference between financial advisors and financial planners. Now, I know what you're thinking - "Aren't they the same thing?" Well, buckle up, because I'm about to blow your mind!

P.S. I respond to emails and happy to answer any questions you may have!

The Great Debate

Let's get real for a second. In our industry, we love to argue about this stuff. Advisors vs. planners, who's better, who does what - it's like the financial world's version of Batman vs. Superman. But here's the thing: while we're busy debating, you're left wondering who the hell you should trust with your money.

Breaking It Down: Advisors vs. Planners

Alright, let's cut through the BS and break this down:

Financial Advisors (aka Investment Advisors)

• Focus primarily on investments

• Usually have securities licenses (Series 6, 7, etc.)

• Main job is to manage your investment portfolio

• Might dabble in other areas, but investments are their bread and butter

Financial Planners

• Look at your financial life holistically

• Consider everything from taxes to estate planning

• Focus on creating a comprehensive financial plan

• May or may not directly manage your investments

The Real Difference: It's All About Approach

Here's where the rubber meets the road:

1. Scope: Advisors are like specialists, focusing mainly on your investments. Planners are more like general practitioners, looking at your entire financial health.

2. Compensation: Advisors often work on an AUM (Assets Under Management) model, while planners might use a fee-only or subscription model. (More on this in a future newsletter!)

3. Philosophy: Advisors often focus on portfolio performance. Planners focus on how your money fits into your overall life goals.

4. Certifications: Look for the CFP® (Certified Financial Planner) designation for planners. It's like the Ph.D. of financial planning.

Why This Matters to You

You might be thinking, "Stoy, this is great and all, but why should I care?" Here's why:

1. Different Needs, Different Professionals: If you just need someone to manage your stock portfolio, an advisor might be fine. But if you want someone to help you navigate life's financial challenges, from buying a house to planning for retirement, you need a planner.

2. Holistic Approach: A planner looks at how all pieces of your financial life fit together. It's not just about making money; it's about using money to create the life you want.

3. Long-term Relationship: A good planner becomes like a financial therapist. They're there for all your money questions, big or small.

The Black Mammoth Approach

At Black Mammoth, we take financial planning to the next level with our modern family office approach. We're not just looking at your investments or even just your finances - we're looking at your entire life and how money fits into it.

Want to learn more about our approach? Check out the No BS Wealth podcast where we dive deep into these topics.

Making Your Choice

So, how do you choose between an advisor and a planner? Ask yourself these questions:

1. Do I just need investment management, or do I need help with my overall financial life?

2. Am I looking for a transactional relationship or a long-term financial partner?

3. Do I want someone who can help me with all aspects of my financial life, from taxes to estate planning?

If you answered yes to the more comprehensive options, you're probably in the market for a planner.

The Bottom Line

Here's the truth: everyone needs financial planning. Whether you're just starting out or you're a seasoned investor, having a comprehensive financial plan is crucial. And that's where a good financial planner comes in.

At Black Mammoth, we believe in the power of holistic financial planning. We're not just here to manage your investments; we're here to help you create the life you want with the money you have.

Want to learn more about how financial planning can change your life? Check out our website at blackmammoth.com or hit me up on YouTube.

Remember, it's not just about growing your wealth - it's about using that wealth to live your best life. And that's what real financial planning is all about.

Until next time, keep building that wealth - the smart way!

Stoy Hall, CFP® Founder, Black Mammoth

P.S. Got questions about financial planning? Hit me up on nobswealth.com. Let's cut through the BS and get you on the path to real financial success!