What is financial planning?
Financial advice and financial planning are not the same things.
I met with a couple last week who told me that they had gone to see a financial planner before coming to see me.
Out of curiosity, I asked them what financial planning services were offered.
“Advice on how to invest our money,” they told me.
“No planning what the money is for?” I asked.
“No…?” came their response, a confused look on their face.
Financial advisers often call themselves financial planners. But financial advice and financial planning are not the same things:
– Financial advice invests your money to help you meet your goals.
– Financial planning helps you define your goals.
– Financial advice works out how to invest.
– Financial planning works out if you need to invest.
– Financial advice invests your money so that you should have enough.
– Financial planning works out how much is enough.
Both are necessary to achieve long-term success.
The plan comes first, then the investments.
All the best,
James Mackay, Independent Financial Adviser in Bristol