What is Financial Planning?

What is Financial Planning?


Date: Feb 28, 2022

Time: 5:00 pm - 6:00 pm

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What is Financial Planning?

By Joe MorganAccounts, Audio Post, Best Financial Life, Capitalism, Diversification, Finances, Financial Anxiety, Financial Fulfillment, Financial Health, Financial Planning, Financial Wellness, Goals, Income, Investing, Investment Philosophy, Investment Plan, Investment Strategy, Life Insurance, Liquidity, Market Crash, Money, Mortgage, Net Worth, Podcasts, Press Release, Retirement, Retirement Income, Social Security, Speculation, Spending, Spending Plan, Stock Market, Taxes, Values, Volatility, WealthJune 8, 2020 No comments yet

Financial Planner. Financial Advisor. Investment Advisor. Or even Investment Adviser.

Do these terms create vibrations of stress in your life?

Yeah, me too.

You see, I don’t really know what they mean! Every one of these people who calls themselves by one of these titles seems to do something a little bit, if not completely, different from everyone else.

And I know a lot of them.

Further, the financial industry doesn’t seem interested in making any of this clear for families. So, that’s what I’m going to attempt here.

I’m going to tell you exactly what I do for clients – not as a sales pitch, but so that you may be able to take some of this away and apply it in your life.

The Four Areas of Financial Planning

Ok, you won’t find this in any textbook, but here are the four areas as I see them (with greater detail below):

Protect What You Have – It makes sense to me that we must protect what we already have before we look to the future.

Know Where It Goes – Since we spend money nearly every day, it’s important to know how much where are spending and what we are spending it on.

Make It Grow – Of course, investments are an integral part of Financial Planning, but you can see they are not nearly as important as some might have you believe.

Independence and Dignity – We want to live out our entire lives with financial independence and dignity, or said another way, we don’t want to live off our kids in our old age.

Protect What You Have

Understanding the protections we have for our assets and making sure they are structured appropriately seems to make common sense. No bank would last very long without locking the vault and no family will likely become financially successful if they aren’t protecting what they have.

There are two primary tools we use to protect what we have: insurance and estate planning.

When I say “insurance,” I mean all kinds of insurance and, more importantly, I mean to address all kinds of risk.

So, this includes your auto and homeowner’s insurance. Your umbrella policy which protects you against lawsuits and other forms of liability. Perhaps you serve on some boards that have created personal exposure to lawsuit, or maybe you are part of your HOA.

Whatever the potential cause for liability, we want to know and understand the risks we are taking so we may consider buying insurance to cover those risks. Note, I am not saying you should always buy insurance to cover everything. I am only saying that you should know and understand all the risks you are taking – as much as this is possible to do!