Do you need a financial planner? What to know before seeking money advice

Are your household finances in a tough spot? Here's what you need to know about seeking advice from a financial planner or advisor, including how to find one you can trust.

Canadians looking for some help managing their money through uncertain times might wish to turn to a financial planner or advisor to guide decisions on everything from investments to getting out of debt.

But as complicated as planning your own finances can be, experts say it’s no simple task getting the right help, either.

“There’s still a lot of ambiguity, I find, with financial advisors in Canada to figure out what the heck they do,” says Jason Heath, managing director of Objective Financial Partners.

Heath, who is a certified financial planner (CFP), and other experts also say relying on outside advice might not be right for every household budget when the costs of financial planning itself are factored in.

Here’s how to decide if a financial planner is right for you, and how to navigate the market to find the right fit.

There are many different types of financial guidance you can get, ranging from straightforward advice to hands-on management of your investments.

But the first distinction to be made is the difference between a financial advisor and a financial planner.

The Financial Consumer Agency of Canada (FCAC) differentiates the more general financial advisors, which could encompass anything from a bank employee to a stock broker to an insurance agent, from the more specific financial planner, which is a type of advisor who helps you make a plan for your long-term savings goals. Some financial planners may offer estate planning advice, tips on how to save money on taxes and retirement planning help.