By Jon Powell, CFP®

Do you need financial planning or investment management? To answer that question, you need to have a grasp on your financial goals, and also understand that advisors have different specialities. 

In this article, we’ll define the differences between financial planning and investment management, as well as detail our process for helping you determine which approach is best.

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 Ferguson Johnson Wealth Management, our team focuses on investment management and financial planning; we will be in your corner for the issues that inevitably come up.

We strive to work with clients whose goals and dreams are a fit with our expertise and background. To determine a fit and bring clients onboard we typically follow an established process:

1. We’ll schedule a brief initial meeting, so you can meet our team and we can learn about you, your goals, and your hopes. After the initial meeting, you’re welcome to reach out again with follow-up questions. If you prefer, we’re comfortable meeting over the phone or virtually.
2. If we agree to work together, we’ll ask you to complete enrollment documents, and discuss your financial situation and needs in greater depth to start building your financial plan. This process usually takes several weeks.
3. Next, we’ll schedule a meeting to walk you through the initial draft of the financial plan we’ve developed. We’ll make any needed adjustments based on your feedback, and then put the plan into place.
4. Once your plan is up and running, our work isn’t done. We’ll check in regularly with you to ensure your plan is on track and reflects your current circumstances. And remember that as a fiduciary, we’re always available to provide an update or to address any questions or concerns.

We pride ourselves on being a stabilizing influence when our clients face times of uncertainty, whether that be market volatility, family issues, or when they just need a sounding board.

Are You Looking for Comprehensive Financial Planning?

If you are looking for comprehensive financial planning that includes strategic investment management, we would love to hear from you. At Ferguson Johnson Wealth Management, we work with pre-retirees, retirees, and government workers to create a financial plan or investment strategy tailored to your needs. To get started, reach out to us at 301-670-0994 or by email at djohnson@fjwealthmanagement.com. 

About Jon

Jon Powell is a financial planner and portfolio manager at Ferguson Johnson Wealth Management, an independent, fee-only fiduciary firm that has been helping clients plan for and enjoy retirement for more than 40 years. With more than 10 years of experience, Jon is passionate about providing unbiased advice that puts his clients first. He considers it a privilege to carry some of the financial burden for his clients and educate them so they can make empowered decisions for their futures. Jon is also the primary author and curator of the Ferguson Johnson Wealth Management blog. 

Jon graduated from Virginia Polytechnic Institute and State University with a bachelor’s degree in financial planning and holds the CERTIFIED FINANCIAL PLANNER™ certification. When he’s not serving his clients, you can find Jon spending time with his wife, Erica, and their pets, a black lab named Nugget and an orange tabby cat named Kiwi. He loves to play tennis and golf and won’t turn down a good board game. Jon is a diehard fan of D.C.-area sports teams; you might see him at a Washington Nationals game. To learn more about Jon, connect with him on LinkedIn.