What is The Difference Between Estate Planning and Financial Planning?

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Financial planning tends to focus on the accumulation and preservation of wealth. It often encompasses such things as:

• Clarifying Financial Objectives
• Education Funding
• Retirement Funding
• Cash Flow Budgeting
• Risk Management
• Asset Protection
• Balance Sheet, Income Statements, and other financial measures

Estate planning, on the other hand tends to focus less on accumulation and more on the protection and ultimate distribution of your assets, accompanied by specific instructions. Both financial and estate planning are ongoing processes—not events. It is inaccurate to say, “I did my financial plan” or “I did my estate plan.” Nothing in life is more certain than change.

Depending on what type of professional you’re talking to, you may hear financial planning described as part of estate planning, or you may hear that estate planning is a sub-set of financial planning. Nevertheless, both types of planning are crucial, and must be integrated to achieve the best results for you and your family.