Chris Held in Business Insider

To Read the Full Article Click Here: Financial Planner Vs. Financial Advisor: What's the Difference? (businessinsider.com)

Excerpt:

To earn the right to be called a Certified Financial Planner (CFP), you need to complete a rigorous course of education, ethical, and experiential requirements — and then maintain a certain level of continual adherence to keep those credentials. Areas of study include professional conduct and regulation, general principles and psychology of financial planning, risk management, insurance planning, investment planning, tax planning, retirement savings and income planning, and estate planning. 

Earning such a designation is highly sought after within the industry because it gives clients reassurance that they're working with someone who has a thorough amount of knowledge in the areas they're advising on, as well as significant experience and an ethical obligation to act in their clients' best interests

"The [CFP] designation is often recognized as the 'gold standard' when it comes to combining financial advisory and planning services by the industry," says Chris J. Held, CFP, CRPS, Managing Partner, and Private Wealth Advisor at Element Wealth Management. "This is because CFP professionals are required to have earned a bachelor's degree, have passed a notoriously challenging six-hour, 170-question exam that has a pass rate of approximately 63%. [It takes about] 18 to 24 months after earning an undergraduate degree to complete. Arguably most important, is the fact that CFP professionals are required to act as fiduciaries." 

When you're looking for guidance in a more general aspect of your financial life, working with a financial planner is a better option than choosing a financial advisor. They can provide a more comprehensive scope of services that encompass just about everything you hope to accomplish. Some financial planners offer more services than others, which is why it's important to research and shop around before hiring anyone.