I work for a finance company called WWM Financial. We help people with financial planning, investment advice and wealth management. Sometimes I forget that not everyone knows what that means so I'll explain.
Seems simple enough right? But what is someone getting when they hire us to create a financial plan for them? Like any plan or road map we have to look at where you are now and determine where and how you want to end up. We should actually call it a life plan because the finance part is really a vehicle to fuel how you want to live and the legacy you leave. Like any plan it changes as your life changes. I love the notorious boxing champion Mike Tyson's view on this. "Everyone has a plan until they get hit in the face". As unexpected life events surface (It may feel like getting socked in the nose) we need to make adjustments to stay on track. Point A to point B is rarely a straight line. A well thought out plan will greatly assist in navigating lifes ups, downs and go arounds to eventually get you to your destination. The key is knowing your destination, why you want to get there and understanding the moving parts that will get you there. \
It's funny. A lot of people want to know what stocks they should buy before they know or let us know their why. This is where we have to take a moment to pause and start with the financial plan. The financial plan will provide a comprehensive picture of a person's expectations, goals, finances, risk tolerance and why they want to invest in the first place. Only after we have created a plan together can we determine the appropriate and unique investment allocation for someone. This is really a custom tailored mix. There are so many different investments and for different reasons may or may not make sense for everyone.
Manytimes after we have worked with someone to craft a financial plan and we advise them on which investments to acquire they ask us to purchase those investments for them and "manage" their "wealth". This entails regular meetings to review the financial plan, monitoring the investments, watching the market and as adjustments are made to the financial plan reviewing the investment holdings to make sure they still make sense.