What is the difference between financial planning and money management. Some would say they are the same thing or money management is more important. "They would be wrong." Money management is part of financial planning, but financial planning is much broader and encompasses a variety of areas which are:
- Managing and eliminating debt.
- Tax planning.
- Risk management.
- Retirement planning which includes pre-retirement planning and post-retirement planning.
- Estate planning.
- Note: Only a qualified attorney can draft estate planning documents, but financial planning includes the estate planning process, discussing the various types of estate planning documents, options available, implementation and ongoing monitors.
- And money management.
All of the above are important and should be addressed, coordinated and reviewed at least annually. For this reason, it is very important to work with a professional fee based or fee only financial advisor who has both quality credentials and experience.