Both financial planning and estate planning helps one to ensure a secure way of managing the wealth that one possesses. Therefore one might think that they are clear alternatives for each other. But in reality, the concepts behind these two types of wealth planning heavily differ. To understand the difference between the two in detail, one needs to delve deep into what they mean and the benefits they offer. The main motto of financial planning is to preserve and grow wealth efficiently. In contrast, estate planning revolves around how the assets and the wealth will be distributed upon the owner’s death. If one has reached an age where one feels it necessary to develop an estate plan, a Cherry Hill NJ estate planning lawyer needs to be consulted for the best results. But if one is looking forward to growing their wealth and making them secure, going for a financial planner would be the best option.
Who Is A Financial Planner?
A financial planner entertains expertise in planning out the entire financial journey of a person who wants to secure and grow wealth and accomplish all the goals concerning finance. To develop sound financial planning, it is essential for the financial planner to delve deep into the current assets, investments, and accounts so that future goals can be easily identified.
Benefits Of Financial Planning:
The main reason behind developing a financial plan is to accomplish long-term targets. A financial planner with sound financial knowledge will offer expert advice on taking the money further and making it grow on its own. Proper financial planning will also help relieve stress and ensure that everything is taken care of. Another important consideration of engaging in an effective financial plan is to maximize or enhance the value of the current investments and accounts.
Who Is A Estate Planner:
An estate planner ensures that one’s assets are distributed upon death according to their wish. This relieves older adults or business owners, as they no longer need to stress out about the future of their wealth and possessions.
Benefits Of Estate Planning:
Unlike financial planning, which is only concerned with the growth of wealth and the accomplishments of both long and short-term financial goals, estate planning deals with the proper distribution of wealth among the heirs or the inheritors. For instance, an estate plan of a business owner would clearly state who would be the successor of the business and whether it would stay within the boundary of the family or be transferred to the partner.
Final Thoughts:
Therefore the parts played by both of them in securing the wealth are significant. One needs to consult a financial planner or an estate planner according to the needs, preferences, and circumstances one entertains at that particular moment.