What is Financial Planning & How is it Different From Investment Management?

When we think of our finances—which can be everything from retirement planning to daily budgeting to investing in the stock market—we tend to call everything financial planning. But is it?

If we called everything financial planning, it would be like calling all vehicles trucks. But in reality, only a handful of vehicles are trucks. There are also SUVs, compact cars, muscle cars, and, well, you get the picture.

When it comes to your finances, it’s important to understand the distinction between financial planning and investment management.

Financial Planning vs. Investment Management

According to the CFP Board, financial planning is a collaborative process that helps maximize a client’s potential for meeting life goals through financial advice that integrates relevant elements of the client’s personal and financial circumstances. Essentially, it’s a holistic process that looks at all parts of a client’s financial situation to create a customized plan to achieve their financial goals. It includes the following subject areas:

• Retirement planning
• Education planning
• Tax planning
• Investment planning
• Estate planning
• Risk management and insurance planning

Investment management, on the other hand, aims to meet particular investment goals for the benefit of clients whose money a financial professional has the responsibility of overseeing. It is a siloed service that does not necessarily incorporate the other aspects of a client’s unique financial situation. Financial planning usually includes investment management, but investment management does not automatically include financial planning.

Our Financial Planning Process

At Infiniti Wealth Management, our team focuses on three key areas: investment management, retirement planning, and women in transition.

Selecting a trusted financial partner to work with is one of the most important decisions you can make for your financial future. Whatever you hope to achieve, it’s our mission to simplify the complexities of your financial life so you can focus on what matters most. If you’re concerned about market volatility or don’t feel you’re truly prepared for retirement, we’re here to help. We offer a no-cost introductory Q&A session to help answer your questions, learn more about your goals, and see how we may be able to help.

In our no-cost introductory phone call, we’ll discuss your:

• Financial questions
• Worries about your financial future
• Concerns or goals when it comes to investing

During our discussion, we’ll answer any specific questions you may have, and take the time to learn about your values, goals, and objectives. You don’t need to do anything to prepare for the meeting, and there’s no cost or commitment for the call. It may be helpful to collect your financial questions beforehand so we can review them together.

Are You Looking for Comprehensive Financial Planning?

At Infiniti Wealth Management, we help with investment management and retirement planning as well as with special circumstances, such as dealing with the aftermath of a divorce or the loss of a spouse. Unlike financial advisors who are affiliated with specific investment firms, we are an independent, fee-only financial advisory firm. We do not sell specific financial products or receive commissions, bonuses, or incentives.

Our independence ensures our clients receive objective and unbiased advice. As your financial partner, we are beholden only to you, and only succeed if you succeed. If you’d like to learn more, call our office at 845-278-8638 or send us a message to set up a complimentary consultation.