Financial Planner vs Investment Adviser

Making confident decisions about your financial future can feel both exciting and overwhelming.

With so many industry titles—Financial Adviser, Investment Adviser, and more—understanding who does what is the first step in feeling empowered and supported.

Gaining this clarity not only helps you find the right guidance but also gives you the peace of mind that your choices truly reflect your goals, your life, and the future you want to create.

Is there a difference between a Financial Planner and an Investment Adviser?

Short answer - yes. In the realm of finance and planning for your future, understanding the distinctions between various roles can significantly impact your success. Two terms often used interchangeably are "Financial Planner" and "Investment Adviser," but they entail different responsibilities and expertise. 

Book a call with a Financial Planner

What is an Investment Adviser?

What is a Financial Planner?

A Financial Planner is a qualified professional, who helps individuals and families create comprehensive financial plans. These plans typically are tailored to the individuals needs and encompass aspects such as budgeting, savings, investments, retirement planning & superannuation, estate planning, asset protection and tax planning. Financial Planners work closely with clients (and other professionals, such as Accountants & Lawyers) to understand their tolerance to risk, their experience and their financial goals. They analyse your current financial situation vs. your goals and provide recommendations to help you achieve them.
 

What is a Financial Adviser?

The definition of a Financial Adviser is an individual who is:

• An Australian financial services (AFS) licensee, an authorised representative, employee or director of an AFS licensee, or an employee or director of a related body corporate of an AFS licensee.
  
  
• Authorised to provide personal advice in relation to relevant financial products to retail clients (consumers).
  
  You can check the Financial Advisers Register on the ASIC website. 

Key Differences Between a Financial Planner and Financial Adviser

Scope of Services

Financial Planner:

Provides holistic financial planning services covering all aspects of your financial life.

Investment Adviser:

Offers advice on specific financial products and investments only.

Client Interaction

Financial Planner:

Works closely with clients to develop long-term financial plans, offering ongoing review and management.

Investment Adviser:

Typically interacts more on a transactional basis, focusing on investment recommendations and managing financial products.

Fees and Costs

Financial Planner: 

Charges a professional flat dollar fee for services provided and time spent. The focus is long-term, on client outcomes and not assets based. Ideally you want to find an Independent Financial Planner (as defined by Corporations Law) who does not receive any form of conflicted remuneration. 

Investment Adviser: 

Typically charges commissions or percentage fees based on either transactions or investment assets managed. 

Expertise and Certification

Financial Planner:

Is degree qualified, have a minimum of 10 years’ experience and often holds, industry qualifications, such as the Certified Financial Planner (CFP®), indicating expertise in comprehensive financial planning.

Investment Adviser:

May also be degree qualified and hold licenses specific to securities and investments only.

Choosing the Right Professional for Your Needs

For Comprehensive Planning:

If you seek a holistic approach to managing your finances, including budgeting, retirement planning & superannuation, asset protection and estate planning, a Financial Planner is ideal.

For Investment Management:

If your primary concern is picking investments or financial products, consulting with a Financial Adviser may be beneficial. But be aware that the investment advice may not align with you overall financial position or objectives 

How Strategy First (Independent Financial Planning) Can Help 

We understand that everyone’s financial journey is unique. Whether you're planning for retirement, managing superannuation, or seeking to grow your wealth as a family, our team of experienced professionals is here to provide personalized financial advice and planning services.

We combine deep industry knowledge with a commitment to understanding you and your goals, ensuring that every aspect of your financial plan is in your best interest.

Conclusion

While the terms "Financial Planner" and "Investment Adviser" are often used interchangeably, they represent distinctly different roles in the Australian financial landscape.

Understanding these differences empowers you to make informed decisions about who to work with, based on your specific financial needs and goals.

Empower your financial future with expertise. Plan strategically, thrive financially