By Clode Moradi, MSPFP, CFP®
The terms strategy and tactics originally came from the military when planning an attack. Now they also describe plans for other aspects of life. One of these is a financial plan. Using a strategy and tactics to create a financial plan help to drive your financial future and business in a clear direction. In order to be successful, it is important to grasp the difference between strategy and tactics.
A strategy is an overview of the plan used to meet your goals. It creates a way to overcome weakness and find a method to become stronger. You can typically define a strategy in just a few sentences. It can be anything from increasing your savings, paying less tax, setting and achieving your goals, to how you will optimize your business for the year. In Financial Planning, because of the interconnections, a more comprehensive strategy can be put in place that incorporates into it and encompasses your smaller strategies. A clear strategy lays a path to a solution, showing how to get there by using specific tactics.
Tactics are the specific actions required to make your strategy work. As the strategy lays the path to success, you can start to envision the steps it takes to get there. Sometimes it will take more than one tactic to reach a turning point in the strategy. There also might be long-term tactics and short-term tactics to reach a goal. A strategy that takes two months might employ tactics that take two years, and vice versa, meaning the time frame is not always the same for each. But in the end, they work together to achieve the same goal.
Without a strategy, you are just trying different tactics to see which one fits the best. The two go hand-in-hand when creating a plan for efficiency. If you waste all of your time taking shots in the dark, you may never come up with the right tactic to reach your end goal. By knowing the difference between these two terms, you will be able to move further ahead with your personal and business plan.
Clode Moradi, MSPFP, CFP®
Clode is an independent Certified Financial Planner™ Professional and has a Post-CFP® Masters Degree in Advanced Personal Financial Planning, from Kansas State University, one of the most prominent financial planning universities in the nation. He graduated at the top of his class with a 4.0 GPA from Kansas State University and was awarded a nomination and acceptance into the honorary society of Phi Kappa Phi. Clode specializes in taxation, retirement, and investment planning as it relates to personal goals and quality of life. He also holds a Graduate Certification in Financial Therapy, and has written extensive research articles on financial topics such as goal based portfolio construction, how to define “financial success”, money psychology and its manifested human behaviors, and various other topics related to finance, taxation, and human behavior as they relate to one’s quality of life. Clode also has a Bachelor’s Degree in Personal Financial Planning, where he graduated Summa Cum Laude from Franklin University of Ohio. He is an active member of the Financial Planning Association and Financial Therapy Association.
Clode is the founder of Brilliant Financial Strategies, LLC. He started in the financial industry more than 20 years ago and created BFS as a platform to offer financial planning to people at a much deeper level. Clode feels that Financial Planning needs to break out and surpass the status quo. “Our job is to help clients make use of their financial potential to build a meaningful life”.
He enjoys spending quality time with his family, which consists of his three wonderful children. Clode’s hobbies include saltwater fishing and Brazilian Jiu-Jitsu. Clode is the creator of a group called Kool Kids Fish that introduces kids and their parents to the hobby of fishing, as a means of spending quality time together. Clode also coaches a kids Jiu-Jitsu Competition class at Gracie Barra La Canada-Flintridge, where he works with kids and teens that compete in Jiu-Jitsu tournaments nationally. One of his most valued personal accomplishments is receiving his brown belt in Brazilian Jiu-Jitsu from ADCC world champion Orlando Sanchez of Gracie Barra.
Clode’s approach to life, money, and financial planning is to create quality of life through balance and honest self-reflection. He believes that abundance can only have value when there is balance in one’s household, family, and internal being. He brings this approach to all aspects of life.
This article is for reference and informational purposes only and does not provide tax, legal, or accounting advice. It is for guidance only and not a substitute for the user seeking personalized financial planning and professional advice. It is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own financial, tax, legal, and accounting advisors before engaging in any transaction.