What is financial planning?

Published in

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

Contact us

Want to know more? Drop us a line.