In this episode of Thimbleberry U, Jon Gay and Amy Walls dive into the differences between investment advice and financial advice, a distinction often misunderstood. Amy starts by explaining that investment advice primarily focuses on managing and growing an investment portfolio. This type of advice is transactional, with recommendations on specific actions—buying, selling, or holding certain securities like stocks and bonds. The goal is to maximize returns while managing risk, ensuring that decisions align with an individual’s financial goals, but it tends to be isolated to just the investments themselves.

On the other hand, financial advice, or financial planning, takes a broader and more comprehensive approach. It encompasses every aspect of a person’s financial life, from budgeting and cash flow to debt management, tax planning, retirement, and estate planning. Amy highlights that financial planning is about creating a roadmap tailored to individual goals and life circumstances. It's not just about managing investments, but rather helping people make smarter financial decisions across all aspects of their life, ensuring their puzzle pieces—such as income, taxes, healthcare costs, and family goals—fit together to create a cohesive financial picture.

The conversation further explores the importance of looking at long-term financial health. While investment advice can grow wealth, Amy emphasizes that without a financial plan, people might miss out on maximizing their financial potential or addressing risks like healthcare costs or tax inefficiencies. Financial planning adds purpose and intentionality to the money management process by linking investment strategies to broader life goals. This holistic approach is key for most people, as few live their lives in silos, and their financial decisions are deeply interconnected.

While investment advice serves those with specific portfolio management needs, financial planning offers a complete, integrated approach for those with broader, more complex financial goals. Amy underscores that most people would benefit from financial planning due to the interconnected nature of life and money.

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.