Financially speaking, it’s always important to plan for the future. Life can be unpredictable, after all, and it’s important to think ahead in order to not only preserve and grow one’s wealth but also to plan for how it will be dispersed or distributed after one’s passing.
That’s where financial planners and estate planners come into play. These professionals can help you with a range of financial matters, but it’s important to understand that financial planners and estate planners aren’t quite the same thing. This guide will cover all you need to know.
Let’s begin with a look at financial planning. As the name suggests, a financial planner is someone who helps you plan out your financial goals and journey. They can review your current situation with accounts, assets, and investments and work with you to identify goals you want to reach and consider the best ways to achieve those goals.
The main role of a financial planner or advisor is essentially to help you get your make the most of the money you have and help it work for you in the long term. They’ll help you generate a financial plan and work out a road map to help you grow and maintain your finances in the years to come, complete with expert advice and recommendations.
There are many advantages to working with a financial advisor. Here are just some of the key reasons to choose one:
Next, let’s look at estate planning. Despite the fact that it might sound similar to financial planning, it’s actually a very different process. Estate planning is only handled by an estate planning attorney, and the process essentially involves planning out how your assets and wealth will be distributed after your death.
The process involves preparing wills and trusts, as well as making plans for possible eventualities which may occur in your lifetime, like physical incapacity or mental illness that might make it impossible for you to make financial decisions by yourself. A complete estate plan will therefore incorporate a will, trusts, and necessary powers of attorney for various possible outcomes.
Both estate planning and financial planning are about making plans to manage one’s wealth and make sure it’s all properly organized, but that’s where the similarities end. Financial planning is much more focused on growing a person’s wealth and reaching financial targets during their lifetime, while estate planning is a process for planning out what will happen to a person’s wealth if they die or become unable to manage it themselves.
As we can see, estate planners and financial planners each have their own distinct parts to play, and it’s important to be aware of what each one does and make the most of both of their services if you want to enjoy maximum financial control and freedom. If you want to make your money work for you and hit future goals, a financial planner can help, and if you wish to ensure that your loved ones are looked after in the future, an estate planner is crucial.