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What Comes First Financial planning or Investing


Financial planning and investing are two important aspects of managing your finances, but which one should come first? To answer this question, let’s look at what each of those aspects means. Once we know the differences between financial planning and investing, we can look at which one should be the priority.

Financial Planning

Financial planning is the process of creating a roadmap for your financial future. It involves setting goals, managing debt, and including solutions to maximize overall net worth over the long term. Financial planning takes into account your current financial situation, your future financial goals, and the steps you need to take to reach those goals. A financial plan can help you understand what a small shift today can do to you and your family in the future. Investing, on the other hand, is buying assets at a price that you consider to be lower than what it should be in the future.

Which Comes First: Financial Planning or Investing?

When it comes to building a strong financial foundation, many people make the mistake of jumping right into investments without first developing a solid financial plan. While investing can certainly help you grow your wealth, without a plan in place, you may be putting your money at risk. Unfortunately, a lot of people are flying blindly without a plan.

Financial planning should be the primary focus because it will guide you in a direction that will help you achieve your financial goals. Whether you're saving for retirement, paying off debt, or planning for a big purchase, a well-crafted financial plan can help you get there.

Here are three reasons why financial planning should come before investing:

1. Financial planning helps you clarify your goals:

Before you start investing, it's important to know what you're investing for. Going through the process of financial planning will help you clarify your goals and priorities. Going even a step further, it gives you a roadmap for achieving them. For most people, searching for long-term goals is more difficult than most people imagine. That is where working with an advisory team will help you uncover your full potential. By setting specific, measurable goals and creating a plan to achieve them, you'll be more motivated and focused in your investing.

2. Financial planning helps you manage risk:

Investing always involves some degree of risk, and without a financial plan in place, you may be taking on more risk than you need to. Having a well-defined financial plan helps you manage your expectations and the amount of risk required for your goals to be successful. By taking a strategic approach to investing, you can minimize your risk.

3. Financial planning helps you stay on track:

Investing is a long-term game, and it's easy to get distracted by short-term market fluctuations. A financial plan helps you stay focused on your long-term goals and avoid making impulsive decisions based on short-term trends. By regularly reviewing your financial plan and adjusting it as needed, you'll be able to stay on track and make steady progress toward your goals.

To summarize, financial planning should always come before investing. By developing a comprehensive financial plan, you'll be better prepared to manage risk, clarify your goals, and stay on track over the long term. There is not a dollar amount that will make you wealthy or successful. Having a plan that helps you achieve all your goals is key to feeling wealthy. Click here to schedule a free 30-minute consultation.

Blog by;

  • Jai Gandhi, Associate Investment Advisor
  • Brandt Butt, Associate Portfolio Manager / Investment Advisor, CIM® CFP®

Brandt is an Associate Portfolio Manager / Investment Advisor and part of an award-winning team at Endeavour Wealth Management with iA Private Wealth. Brandt’s focus is working within incorporated physicians and dentists between the ages of 35-45 who are looking to set themselves up on the right financial path in hopes of reaching a point where they are choosing to work, instead of having to.

This information has been prepared by Brandt Butt who is an Investment Advisor / Associate Portfolio Manager for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained here in may not apply to all types of investors. The Investment Advisor/ Associate Portfolio Manager can open accounts only in the provinces in which they are registered.

iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.


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