Lawyer vs. Financial Advisor: Which Do You Need?

Investors use financial planners to provide wealth management and financial planning advice. Lawyers also provide financial planning advice that protects your assets. When it comes to a lawyer vs. financial advisor, which do you need? Let’s break down when you can use the services of either or both. A financial advisor could help you create a financial plan to manage and protect your wealth.

What Does a Financial Advisor Do?

A financial advisor offers wealth management and financial planning advice. Their expertise covers various topics, including investments, retirement plans, insurance, estate planning, saving for college and more.

There are many types of financial advisors, each with different certifications, licenses, and expertise. And some financial planners specialize in certain products or types of clients.

It is important to find an advisor whose expertise and skills match your financial goals and needs. Below are seven types of services that financial advisors offer:

Portfolio reviews
Individual retirement planning
College savings strategies
Insurance policy reviews
Estate planning
Tax strategies
Company retirement plans

What Does a Lawyer Do?

Lawyers advise clients in legal matters and represent them in courts to protect their interests. The lawyer and their legal team file papers with the court to represent them when suing a person or business or defending their client in civil or criminal court. They advise their clients on the best courses of action, search for evidence to protect their clients, and research case law to substantiate their positions.

While some people think lawyers focus solely on court cases, their expertise goes beyond that part of the profession. Other services that attorneys provide include:

Review or draft a contract
Create a will or living trust
Prepare real estate transaction paperwork
Craft a partnership agreement
Mediate disputes
Negotiate terms of an agreement
Send a demand letter

While a lawyer and a financial advisor may both provide estate planning advice, generally, their services do not overlap. Instead of approaching it as a lawyer vs financial advisor, most investors should have both professionals on their team.

The financial advisor provides financial advice and discusses strategies to reduce your risk using tax codes or financial products. A lawyer reviews those contracts and advises you on the risks you may face when entering those agreements. The lawyer can also create estate planning documents that complement the estate planning strategies that your financial advisor recommends.

Together, a lawyer and financial advisor can maximize your benefits, while highlighting areas of risk in your financial plan.

Bottom Line

When deciding between a lawyer vs financial advisor, you have to understand what each professional does and how they fit into your financial needs. A financial planner specializes in wealth management and financial planning, while an attorney creates legal documents and provides advice regarding the law. For investors, the best approach is to create a team of advisors that works together to protect your assets and puts you in a position to succeed.

Tips for Protecting Your Assets

Financial advisors and attorneys offer services and products to protect your assets. One of the easiest ways to protect your assets is by buying life insurance. It is an affordable option that provides money to your heirs to replace your income and ensure that they are taken care of. Our life insurance calculator estimates how much life insurance you need based on your answers to a few quick questions.
To protect your assets, it is wise to build a team of professionals that offer guidance and advice when you need it the most. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.