Financial Planner vs Financial Advisor vs Investment Advisor: Key Differences Explained

One of the questions I get asked so frequently is about the range of terms that seem to be used interchangeably about professional roles in the finance industry. Is a financial planner the same as a financial advisor and is this different to an investment advisor? So I thought I’d explain a financial planner vs financial advisor vs an investment advisor to help you make an informed decision about the support and advice you actually need.

Financial Advisor Vs Financial Planner: Is There A Difference?

So what’s the difference between a financial advisor and financial planner? The short answer: in Australia, most people use “financial advisor” and “financial planner” to describe the same profession. The term “financial adviser” (with an e) is the regulated label used in law and by industry bodies. However, there is a subtle difference between a financial planner and advisor: financial planning is a specialist area under the broader umbrella term of financial advice.

In practice:

• Financial advisor / adviser is the umbrella term. It covers professionals who are authorised to provide personal financial advice.

• A financial planner is an expert who creates a comprehensive financial plan to meet their client’s objectives such as retirement and estate planning, tax efficient management of wealth, intergenerational wealth transfer and superannuation.

So while the titles differ, the service scope depends on the firm and the advisor’s authorisations, not just the job title.

Is It Advisor or Adviser In Australia?

Actually both spellings are correct but an interesting nuance about the use of the terms advisor and adviser in Australia is that within the financial sector we refer to ourselves as ‘advisers’ (spelling it with an ‘e’). However, a greater proportion of the general public prefer to spell it ‘advisor’. For the purposes of this blog I’m going to stick to ‘advisor’ for consistency.

What Do Financial Advisors Do?

An experienced financial advisor works directly with their client to understand their financial goals and offer comprehensive financial advice to help you make confident decisions and stay on track as life changes. Typical areas include:

• Clarify goals and priorities: milestones, timeframes and risk tolerance

• Superannuation and retirement planning: contributions, investment mix, drawdown strategy

• Investments: portfolio construction, asset allocation, rebalancing and reporting

• Tax awareness and structures: working alongside your accountant to optimise outcomes

• Estate and intergenerational wealth considerations: wills, powers of attorney, beneficiary planning

• Ongoing accountability: regular reviews, scenario modelling and course corrections

What’s the Difference Between An Investment Advisor and Financial Planner?

An investment advisor typically focuses on the portfolio: selecting investments, managing risk, monitoring performance and adjusting the asset mix over time. The core questions revolve around markets, diversification, fees and discipline.

A financial planner looks at investments and everything that surrounds them: cash flow, superannuation rules, insurance, retirement income, tax awareness, estate wishes and big-picture life goals. Many planners provide investment advice too, but it is delivered within a wider plan so your portfolio serves your life, not the other way around.

Key differences:

Scope:

• Investment advisor = portfolio-centric; Financial planner = whole-of-life finances

Decisions:

• Investment advisor = securities, funds and allocations; Financial planner = strategy first, investments second

Success measure:

• Investment advisor = risk-adjusted returns; Financial planner = progress towards goals with an appropriate level of risk

Financial Advisor Vs Accountant: Do I Need Both?

The short answer to this is probably yes but this obviously depends on your circumstances. Again it’s important to highlight that a financial advisor performs a very different role to an accountant. If you manage a business, for example, you’re likely to require an accountant to help you stay on the right side of the Australian Taxation Office (ATO). Their main focus is on maintaining accurate financial records and using them to help you make better decisions.

An accountant prepares and lodges tax returns, financial statements and gives specific tax advice. A financial advisor designs and implements strategies to build, protect and transfer wealth over time. You’ll get the best results when the two work together: the advisor maps the course, the accountant ensures the tax treatment and reporting are correct.

Use both when you’re making decisions about contributions to super, restructuring debt, realising gains or setting up entities. Their collaboration helps ensure your strategy is sound, compliant and tax-aware. By taking a holistic approach to your finances, we usually find that our clients have greater financial stability and growth potential.

What Licenses Does A Financial Advisor Need?

In Australia a financial advisor who gives personal advice on investments, superannuation or insurance must operate under an Australian Financial Services Licence (AFSL) held by their firm, or be appointed as an Authorised Representative of an AFSL holder. They must also be recorded on the ASIC Financial Adviser Register, meet legislated education and ethics standards, pass the national adviser exam, complete a Professional Year if required, and maintain ongoing continuing professional development.

Where an advisor provides credit assistance, such as recommending or arranging loans, they must hold an Australian Credit Licence or act as a Credit Representative of a licence holder. For tax-sensitive strategies, advisors typically work in tandem with your accountant so that any specific tax advice is delivered by a suitably registered professional within the appropriate regulatory framework.

Selecting A Financial Advisor: What Should You Look For?

Choosing the right partner matters. Here is a practical checklist:

• Authorisations and registrations: ensure the adviser is properly authorised to provide the advice you need

• Experience and specialisation: look for expertise aligned to your needs (e.g. retirees, medical professionals, business owners, high net worth)

• Clear advice process: discovery, strategy, written recommendations, implementation and regular reviews

• Transparent fees: how you pay (flat fee, asset-based or a blend), what is included and how value is measured

• Best-interests focus: your goals first, with recommendations explained in plain English

• Investment philosophy: evidence-based, diversified and disciplined; how portfolios are built and rebalanced

• Communication frequency: meetings, reporting and responsiveness that suit you

FAQs About Financial Advisors

What does a financial advisor do?

A financial advisor helps you set clear goals, designs strategies for cash flow, superannuation, investments and insurance, and keeps you accountable through regular reviews so you stay on track as life changes.

What is a financial planner?

A financial planner provides holistic, goals-based advice that brings together your cash flow, superannuation, investments, personal insurance, retirement planning and estate considerations in a coordinated plan.

What is the difference between a financial planner and financial advisor?

In Australia the terms are often used interchangeably. “Financial advisor” is the regulated label, while “financial planner” commonly describes a holistic advisor who provides broader, goals-based planning across your finances.

What does an investment advisor do?

An investment advisor focuses on your portfolio: asset allocation, investment selection, risk management, rebalancing and performance reporting, keeping your investments aligned to your objectives and tolerance for risk.

Do I need both a financial advisor and an accountant?

Yes in many cases. A financial advisor builds and implements your wealth strategy. An accountant provides tax advice, prepares returns and financial statements. Working together ensures your plan is effective, compliant and tax-aware.

Is ‘advisor’ or ‘adviser’ correct in Australia?

Both are acceptable. Within the financial sector the preferred spelling is “adviser,” while the general public often uses “advisor.”

How are financial advisors paid?

Common models include flat advice fees, asset-based fees, or a blend. The key is transparency about what you pay, what is included and how value is delivered over time.

What qualifications should I look for?

Look for appropriate authorisations, relevant tertiary study, ongoing professional development and experience with clients like you. Ask about specialisations that match your stage of life and goals.

What should I consider when selecting a financial advisor?

Assess fit on process, communication style, investment philosophy, experience and expertise. Choose someone who explains recommendations clearly and focuses on your best interests.

How Scion Private Wealth Fits In

As an experienced Brisbane financial advisor, we combine goals-based financial planning with evidence-based investment management to give you clarity, confidence and structure. We build holistic plans that align cash flow, superannuation, investments, insurance and estate considerations so your money is working towards the life you want.

Our approach is transparent and collaborative: clear fees, plain-English advice documents, disciplined portfolio construction and proactive progress reviews. Whether you are accumulating wealth, planning retirement or coordinating intergenerational wealth transfer, we’ll help you make informed decisions and stay on track.

We have a number of trusted referral partners for clients looking for expert accounting support including MGI South Qld.

Ready to talk? Book a discovery conversation with Scion Private Wealth to explore the support that best fits your goals.

Disclaimer: This information is general in nature and does not constitute personal financial advice. It is not intended to influence any financial decisions. We recommend speaking with a licensed financial advisor to assess the suitability of any strategy for your personal circumstances.