April 12, 2023

What is a financial plan?

“I believe that the biggest mistake that most people make when it comes to their retirement is they do not plan for it. They take the same route as Alice in the story from “Alice in Wonderland,” in which the cat tells Alice that surely she will get somewhere as long as she walks long enough. It may not be exactly where you wanted to get to, but you certainly get somewhere.” ― Mark Singer



Do I need a financial plan?

By definition, to "plan" is to think before acting. When it comes to the money you have sacrificed to save, there is value in being intentional.

Will planning make me money?

Yes! Personal finance decisions and behaviours can easily get away from you. A ship setting sail off course by only a few degrees ends up far from its intended destination. Similarly, financial habits and routines can lead to massive gains, or massive losses, over time. A core part of planning is optimizing your financial set up by lowering fees, minimizing taxes, and protecting against unnecessary risk.

What is Financial Planning?

It’s a tool for better decision-making. Planning gives you context into the impact of your decisions, and  what is life, but a series of decisions.

Planning starts with an assessment of your current situation.  It considers where you are today, combined with forecasted economic growth rates and tax calculations, to build a trajectory of your financial life.

This allows you to explore the “What If” scenarios of your life.

We allow for no question to remain unanswered. You can explore alternative scenarios and see the impact of your decisions.

I have a plan, now what?

Things get done. We have the roadmap, so an action plan is needed to ensure the correct tasks reach completion.

Isn’t investing more important than planning?

Investments are largely outside of our control, yet they dominate focus. You can try to tame the sea, but you’re better off learning to sail.

When it comes to our financial lives, we need to be pragmatic and realistic. We need to think honestly about what areas we can control and what areas we cannot. With that kind of focus, we can find areas of personal finance that feel more like rocks and less like sand.

Camber’s dashboard draw focus to what is important by confronting the questions, “What am I trying to accomplish?” and “What is possible within my situation?”. We help define what wealth means to you and put you on the path to a rich life, well-lived.

Is planning a way for Camber to sell life insurance?

No. We don’t sell insurance.  While some Financial Planners build plans only to sell insurance products, we don’t.  We are different.

Is Camber’s financial plan a 50-page report?

No, we’ve modernized the experience. Traditional plans are spreadsheet-heavy and difficult to consume.

We believe complexity impedes understanding, so our plans are built using data visualization in order to be interactive and intuitive.

How much does it cost?

Our financial dashboard is free (seriously, it’s free; no strings attached). To access our full suite of services, including discretionary investment management, our fees start at 0.95% on the first $2,000,000, and scale down from there.

Please note, our minimum account size is $500,000.

How do I get started?

You can build your custom dashboard online by clicking here. Alternatively, you can schedule a meeting with our team.

For additional information about Camber and what sets us apart, be sure to read: What Makes Camber Different.

We asked a super-computer (ChatGPT) to fact-check us.

Q: Is it more important for financial advisors to focus on investment management or financial planning?

A: The relative importance of investment management and financial planning can vary based on individual circumstances and preferences. However, in general, financial planning takes precedence over investment management for several reasons:

Comprehensive Approach: Financial planning encompasses a broader range of financial aspects, including budgeting, cash flow management, tax planning, retirement planning, estate planning, risk management, and more. It addresses the entirety of a client's financial life and goals, considering factors beyond just investments.

Goal Alignment: Financial planning focuses on understanding the client's financial goals, risk tolerance, time horizon, and unique circumstances. It aims to develop a customized plan that aligns investment strategies with specific objectives, ensuring investments are integrated within the broader financial context.

Risk Management and Diversification: While investment management involves selecting and managing investment assets, financial planning incorporates risk management strategies that extend beyond individual investments. It emphasizes diversification, asset allocation, and risk mitigation across various asset classes, aiming to achieve long-term financial security.

Financial Decision-Making: Financial planning helps individuals make informed decisions beyond just investment choices. It addresses cash flow management, debt management, insurance needs, tax optimization, and other financial considerations that impact overall financial well-being.

Long-Term Perspective: Financial planning takes into account the long-term view of a client's financial journey. It emphasizes building a sustainable and adaptable financial plan that can withstand changing circumstances, market conditions, and evolving goals.

While investment management is an important aspect of financial advisory services, it is best approached within the context of a comprehensive financial plan. By focusing on financial planning first, advisors can ensure that investment strategies align with clients' goals, risk tolerance, and overall financial well-being. This holistic approach enables clients to achieve their desired outcomes and navigate the complexities of their financial lives more effectively.