What is the role of a financial planner?

The role of a financial planner is multifaceted and deeply involves the creation and management of comprehensive financial plans tailored to an individual's or organization's specific financial goals and circumstances. Financial planners assess their clients' current financial situations, including income, expenses, savings, and investment portfolios, and use this information to develop strategies for reaching their short- and long-term financial objectives.

This can include budgeting, retirement planning, estate planning, risk management, and preparing for major life events. A financial planner also monitors the progress of these plans and makes adjustments as necessary to adapt to changes in the client’s circumstances or the financial markets.

While some financial planners may provide investment advice or focus on specific areas such as taxes or insurance, their primary function is to offer a holistic financial strategy rather than to focus solely on one aspect of finance. This comprehensive approach distinguishes the role of a financial planner from those who merely sell financial products or provide singular services like tax preparation.