financial planner
A professional who helps individuals and families develop comprehensive plans for managing their finances, including budgeting, investing, taxes, insurance, and retirement.
Example
“After her inheritance, she hired a certified financial planner to create a comprehensive wealth management strategy.”
Memory Tip
FINANCIAL PLANNER = someone who PLANS your financial future. Look for a CFP designation.
Why It Matters
A financial planner helps you create a roadmap for your money that covers multiple areas of your life at once. Instead of making isolated decisions about savings or investments, they help you see how budgeting, taxes, insurance, and retirement goals all connect together to improve your overall financial health.
Common Misconception
Many people believe that financial planners are only for wealthy individuals or that you need a huge amount of money to hire one. In reality, financial planners work with people at all income levels, and starting with professional guidance early can help you build wealth more effectively over time.
In Practice
A 35-year-old earning 65,000 dollars per year meets with a financial planner who discovers they are not maximizing their employer retirement match and paying too much in taxes. The planner recommends increasing 401k contributions by 200 dollars monthly, adjusting their withholdings, and setting up an emergency fund. Within five years, these changes result in an additional 15,000 dollars in savings and tax savings of 2,000 dollars annually.
Etymology
FINANCIAL (relating to money) PLANNER (one who makes plans). Someone who PLANS your FINANCES.
Common Misspellings
Get a free financial plan from a real advisor
Related Terms
More in financial planning
Other financial planning terms you should know
Need financial definitions?
Clear definitions for 2,500+ finance, insurance, and investing terms.