What is the difference between financial advice and investment advice?
Investment advice provides recommendations of the best investment options for your particular situation. This is done after reviewing your; age, investment experience, goals, time horizon, risk tolerance, appropriate asset allocation, etc. This is done through a licensed investment advisor. Some advisors can only sell segregated funds (insurance licensed), or mutual funds (MFDA) or all securities (used to be IIROC now CIRO licensed).
Financial advice could include all of the above investment advice, if the person is a licensed investment advisor but a financial plan will also cover other aspects of your finances, to optimize your overall financial health. This includes things like; cash flow, reducing debt, saving for major purchases and retirement planning. It also includes ways to share your wealth and provides a financial safety net if life gets in the way (using emergency funds and different forms of insurance). For business owners, it also integrates your business finances with your personal finances. All of this is done while making your plan as tax efficient as possible. Only a certified financial planner can provide these services.
So, you can just get investment advise or you can just get financial advice (where the investment information is limited to understanding the different types of investments and your asset allocation, but doesn’t recommend specific investments) and other financial aspects of your finances are reviewed, or you can deal with all of these issues at the same time if your advisor has multiple licenses and training.
At Wealth Maximization Group, we are triple licensed which means that we can help with your investments, your insurance and your financial planning requirements. Julie has taken multiple courses which go above and beyond licensing courses, in order to master the best way of integrating all of your financial decisions; thereby giving you better, integrated results to get you to your goals faster! Our listening skills and knowledge provide powerful human advice that adapts to changes, so that you can stay focused on; what you really want, take action and live a better life!
