By Jon Powell, CFP®
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:
- 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.
- 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.
- 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.
- 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.