How Financial Advice & Investment Management Work Together

When it comes to the world of finance, there are two major forces that you need to be successful: financial advice and investment management. To some, these may seem like they fall under the same umbrella or scope of practice, but their differences are quite significant. Because they’re different, some may think you can get away with just one or the other. However, they work hand in hand and complement each other in such a way that truly successful personal or business finance requires both. So what does each do?


Scope of Practice


Financial advice differs from investment management, mostly in that it’s a more holistic approach to your finances. A financial advisor is concerned not only with your investments but also your retirement plans, insurance, budgeting as well as tax planning. A financial advisor helps you to develop an overarching financial plan to accomplish your personal goals. An investment manager, on the other hand, focuses entirely on investment management. This involves investment and portfolio management, market research, and portfolio construction and review. Unlike a financial advisor, an investment manager focuses solely on one key aspect of your financial life: your investments. 


How They Tackle Risks


A financial advisor is focused on the emotional risks involved in finance. Namely, how you deal with money stress and risks more associated with emotions. An investment manager does consider feelings but is more focused on risk management as it relates to portfolio performance and the markets. 


The Plan


When it comes to investment management, the plan is focused on how to make your money work for you to accomplish your goals. On the other hand, financial advice focuses on how to make you work towards your specific goals. This can involve budgeting, tax filing, business licenses, retirement plans, and estate plans. As you can see, although both are vital to a successful financial life, they’re drastically different in how they plan for the same goals. 




Financial advisors predominantly deal with significant life changes. Are you buying a home? Are you retiring in 10 years? Have you just lost a job or come into some money? On the other end of the spectrum, investment managers are dealing with market changes and shifts. They work these dips and peaks to your advantage to better help you deal with big life events and changes. 


What About the Money?


Talking about your finances ultimately means talking about your money. When it comes to investment management, we’re speaking more about investing. At times, this can feel a lot like spending your money even though it’s actually about saving and growing for the future. Financial advice differs in that it predominantly deals with how to keep your money effectively. Budgeting and taxes and life insurance — all these tools are ultimately dedicated to saving as much of your money as possible for future goals. 

The big difference between financial advice and investment management is that one is specifically geared towards people, and the other is more dedicated towards the numbers. Their titles say it all. Financial advisors advise on your finances, both personal and professional, while investment managers manage investments. When you manage investments, you focus more on numbers and markets and strategy than you do people.

To be successful in your finances, you need knowledge of both numbers and people. Because investment management is a key aspect of an overall financial plan, you’ll need it as part of the financial advice you receive related to all the other moving parts. Think of investment management and financial advice like fraternal twins; they may look very different, but they’re still part of a holistic unit that’s meant to be together. 


At Cooper Pacific, we deal specifically with alternative investing in the form of mortgage pools. We understand the importance of investment management and watching the numbers. If you’re looking for more information about mortgage investing and how it can help you diversify your investment portfolio, get in touch with Jordan on our team today. 

Our Testimonial
"Cooper Pacific….now there’s a ‘one stop shop’ for many investment needs. I ‘backed up the truck’ and took one of everything…. Corporate account, Personal account, RRSP, TFSA and a RIF. Great customer service and ‘like clockwork’ monthly distributions. I even like the negatives….NO fuss, NO fees, NO sleepless nights…..thanks for a great 10 years….looking forward to the next decade…." Peter B Vancouver, BC

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