This article covers the 9 comprehensive financial planning topics and a high-level explanation of the differences between financial planning and investment management.

Let’s start by answering the question “what is financial planning”? It’s going to depend on the financial advisor, but a comprehensive financial plan will tackle these 9 topics.

1. Cash flow analysis and budgeting

We’ll understand where your money currently flows to and redirect it so that each facet of your life gets dollars allocated to it.

2. Goal planning

It’s time to think big and design a fulfilled life. Be kind to yourself when your goals change because the only constant thing in life is change and so will your goals as life ebbs and flows.

3. Debt management

Debt management is balanced with other goals in your plan by using different techniques so that everything that is important to you gets worked on.

4. Insurance and risk management

This topic is the least favored of them all but shouldn’t be overlooked. This will protect all the work we’ve been doing with your plan and investments should you not be here to see it to completion.

5. 401(k) investment allocation and stock options

We’ll review your 401(k) investment selections to make sure you’re not taking too much risk or not being too conservative. Equity-based compensation is a tricky topic since there are different types and tax impacts.

6. Estate planning

When we die our assets go into 3 buckets, family, charity, and government. RADIANT Wealth Planning, LLC doesn’t give legal advice but works closely with estate attorneys to draft those documents that will then be our foundation for your legacy.

7. Tax planning

We’ll utilize the most up-to-date tax law so that we’re creating tax-effective strategies to maximize your investments and income.

8. Education funding

Savings could be for K through 12 education, college, university, and/or a trade school. Parents, grandparents, aunts, uncles, and even friends can save for a little one’s education.

9. Financial independence

Wanting to be financially independent at a certain age could be the most rewarding goal. When do you want to make work optional? When do you want to be financially independent?

Difference between financial planning and investment management

Financial planning is everything I just described; it’s creating a plan that is being continuously modified as life happens to achieve your goals. Once the plan is created then the investment accounts are established to achieve the goals that are financially dependent.

RADIANT Wealth Planning, LLC is a fee-only financial planning and investment management firm in Newport Beach, CA.