Financial planner vs investment manager: what is the difference?
Investment management is about the portfolio. Financial planning starts with what the money is supposed to achieve.
What does a financial planner focus on?
Financial planning can bring together goals, retirement, cashflow, pensions, investments, protection and other parts of a household's finances. Regulated recommendations depend on the adviser's permissions.
What does an investment manager focus on?
Investment management focuses more directly on constructing and managing portfolios. Some firms combine investment management with financial planning, while others separate the services.
Know which service each fee pays for
A client can sometimes pay an adviser fee, an investment-management fee, platform charges and underlying fund costs. Ask for the total structure in pounds and percentages.
Start with the problem
If you need help deciding whether retirement is affordable, that is a planning question before it is an investment question. If the plan is already clear and the need is portfolio management, investment capability may carry more weight.