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Investment advice versus financial planning

Investment advice versus financial planning

September 15, 2021

What's the difference, and which do you need to succeed?

In our world, many things are linked. Exams and stress, for example - Puppies and Happiness, are two words that come to mind when I think of puppies. While Investment Advice and Financial Planning are complementary, some distinctions between the two are frequently misinterpreted and can confuse. Investment advice, such as investment allocation or an insurance assessment, is a targeted and particular form of counseling. 


A financial plan is complete documents that can help you identify areas of financial concern and serve as a guide for achieving your financial objectives. If you are still looking for an investment advisor near you who will assist you with various investment and financial advice, contact us. 


What is Investment Advice?

 A licensed individual gives investing advice on a particular subject or sector. This could be a fee-based Investment Advisor Representative who manages investments. In this case, the client entrusts their assets to an advisor in exchange for an annual fee. The advisor may ask the client to complete a risk questionnaire to evaluate what types of investments they should make and how long they will need those funds (called time horizon). Working with an investment advisor's purpose is to have the advisor develop your investments over time so that you can use them for a future goal (debt repayment, children's education, retirement, or passing money onto the next generation).

 What is a Financial Plan?

 A financial plan is a document used to protect and preserve your savings while determining the best strategies to improve your financial situation. It is created, evaluated, and provided by a financial planner affiliated with a Registered Investment Adviser company. Recommendations may include debt management, budgeting tactics, better goal funding techniques, insurance or investment evaluation, tax reduction approach, and more within a financial plan. The financial planner does not have to implement the project or manage the client's assets once completed; the client has received the suggestions and can choose to follow them.

 Which is best for me?

 Both financial planning and investing guidance are beneficial to the majority of people. It assists in creating a financial plan that can help identify assets, liabilities, and cash flow to begin attaining your financial goals. Working with a financial planner to develop a project allows you to take the necessary measures to achieve your objectives. When significant life changes occur, a financial plan may need to be updated regularly (getting married, changing jobs, beginning a family). With your new situation, the updated timetable will re-prioritize your goals. 

Several experts include recommendations for appropriately managing retirement funds or changing your entire financial portfolio in the plan. 


This is where investing advice can assist you in making the best decisions based on the portfolio's period and how risky you are as an investor. In case you are looking for an expert financial advisor, then you can contact Omegawmg. Minnetonka's 403 (b) Planning financial advisors are the most prominent solution providers for your economic issues.