Should I be prioritising estate planning or financial planning?

Hi Anon,

I think most would speak about doing both in conjuction with each other. However if we want to talk about importance, I think financial planning is of a higher importance, cause financial planning involves many different components, from budgetting your expenses, to insurance so that wealth is protected in the event of crisis and investing your money so that your money works harder for you and to fight against inflation. And because planning of money is involved, Estate planning is a sub-set of this.

Estate planning, that is more for legacy, what is it that you want to leave for your loved ones, it can be via an insurance payout, money that you have been setting aside or even properties and other form of assets that you have.

Both are complimentary and should be done congruently. It is not a mutually exclusive situation whereby you need to choose one or the other.

However, proper estate planning is a subset of financial planning.

Estate planning will include other professionals as well depending on the size of your estate. Lawyers and accountants will usually be brought in to ensure smooth transfer of assets in the event of demise.

A financial consultant's role is to provide the financial know-how of the client's affairs. Asset allocations, risk assessment for beneficiaries and goals for the client when he or she is not around.

Financial planning encompasses estate planning as one of the main objectives.

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