Why Financial Planning Should Always Come Before Choosing Investments
Start with the Map, Not the Motor
Picking investments before you create a financial plan is like deciding whether to fly, drive, or take the train—without knowing where you're going. It might seem exciting, but it’s not smart.
As a CERTIFIED FINANCIAL PLANNER™ and Behavioral Financial Advisor, I often have friends or clients approach me with the “next great investment idea” they heard from a friend, a family member, or the media. Their question is almost always: "Is this a good idea?"
And my answer is always the same:
"It depends."
That’s because good investing decisions aren’t about chasing the latest stock tip or trendy product. They’re about making sure your money aligns with your goals, values, and long-term financial plan.
Start with a Plan, Not a Product
At Dunncreek Advisors LLC, we believe in comprehensive financial planning. That means the first step is understanding what matters most to you. Whether your goals include:
- Retiring early
- Helping grandkids with college tuition
- Buying a lake cabin
- Starting a business
- Leaving a legacy
…your financial plan should be built around those priorities.
It’s like going to the doctor—you wouldn’t want a prescription before you’ve even described what hurts. Similarly, choosing financial products without a clear plan is risky.
The Right Order: Plan → Process → Products
Once your goals are clear, we help you build a process. That includes decisions around saving, investing, risk management, and even how much insurance might make sense for your situation.
Only after your plan and process are in place do we evaluate the tools available—financial products like IRAs, 401(k)s, mutual funds, or annuities. They’re important, yes, but they’re not the starting point.
Too often, media headlines and TikTok influencers focus on the latest hot stock or flashy investment trend. But that’s like obsessing over the sprinkles on an ice cream cone before you’ve even made the cone.
Instead, if you want to make smart money decisions that truly move you forward, flip the script:
- Start with a financial plan.
- Design your process for saving, investing, and protecting your wealth.
- Then choose your financial products that support your plan.
Get the Right Financial Map
If this sounds overwhelming, you’re not alone. I’ve spent more than 23 years helping individuals and families across Minnesota—and beyond—make confident financial choices.
Based in West Saint Paul, Minnesota, I specialize in helping people like you find clarity with their money. Whether you’re nearing retirement, starting a family, or just feeling unsure where to begin, I’d love to help you find the right financial map and the right ride to get you there.
Ready to start your financial journey?
Click here to schedule a free, no-obligation consultation. Let’s talk about your goals and how to reach them on your terms.
Dunncreek Advisors LLC does not provide legal or tax advice. This article is for informational purposes only and should not be construed as financial, tax, or legal advice.
Frequently Asked Questions (FAQs):
1: Why is financial planning important before investing?
Because it ensures your investments align with your goals, values, and long-term needs.
2: What’s the difference between a financial plan and an investment product?
A financial plan is your strategy, while investment products are the tools to execute it.
3: How do I know which financial products are right for me?
The right products depend on your goals, risk tolerance, and overall financial plan.
4: What if I already have investments but no clear financial plan?
You can still create a plan that aligns your current investments with your goals moving forward.