Holistic Approach Financial Planning

Posted on Friday, August 25, 2023
by AMAC, D.J. Wilson
holistic approach written in digital web

Grow your wealth

One of the main goals of financial planning is to grow wealth. However, there can be many roadblocks to saving and investing, such as having debt or saving for a home or wedding. In many cases, people who wish to save and grow wealth for the future seek expert guidance. A certified financial planner is an expert in the field who helps individuals and families plan for their financial future. They understand money and investments and seek to help people make smart decisions when it comes to finances. One of the best ways to achieve financial success in the future is through something called a holistic approach financial planning. Let’s learn more.

What is it?

Holistic approach financial planning is a top-down approach. In the past, many financial planners would begin creating a savings plan by focusing on what people can currently afford to invest for the future. This method relies on calculations and fails to consider the client’s goals. A newer pathway to create a financial wellness plan uses the holistic approach to financial planning. This includes evaluating clients’ objectives to tailor an individualized financial plan that’s just right for them. The old-fashioned approach often emphasized analytics. The newer holistic approach involves seeing the broad picture to include life goals and future achievements, then using that as a starting point.

Interview your financial planner

It is critical for people to discover and work with a financial planner who is certified, qualified, knowledgeable, and trustworthy. It is equally important that the methods of financial planning align with what clients seek to build. For example, should you wish to create a college fund for your child, and money is needed in fifteen years for that, your financial advisor will provide direction and options to grow your money for that purpose. Hiring the right professional, one who considers your goals, will provide peace of mind. Per M C Wealth Management LLC, the best financial advisors will consider factors such as risk tolerance, financial aspects of your life, and your tax situation. Financial advisors who are also CPAs have the added advantage of knowing the big picture when it comes to complete finances.

What is a standard goal people share when it comes to investing

For many, a common goal of creating investments is to grow money for retirement. This provides the avenue to ultimately live well and worry-free during retirement. Holistic financial planning can pave the way toward comfortable and happy golden years. Short term goals may include saving for a home, kids’ college funds, or new business start-up as examples. One may also seek to create wealth to improve one’s lifestyle, gain financial security, or accumulate a legacy for future generations.

Why is the holistic approach better?

There are numerous reasons why the holistic approach to financial planning is superior to the old way of plugging in numbers. Here’s why:

  • It helps clients envision and set specific realistic goals
  • It provides a clear picture of one’s finances and increases financial awareness
  • It offers opportunities to explore different ways to save and invest
  • It takes risk assessment into consideration
  • It creates clear steps towards one’s goals
  • It allows clients to monitor what is happening in their financial lives
  • It lets clients play an active role in their financial plan
  • It establishes flexibility for life changes
  • It sets people on the right path to achieve their financial goals

Journey-based holistic financial planning

There are many advantages to holistic approach financial planning methods. Unlike standard financial planning of days-gone-by, where numbers were simply plugged into a calculator or computer, this is a personalized financial journey. Holistic approach financial planning considers one’s future goals and discovers feasible ways to make financial dreams and lifestyles achievable.

How is it different?

Holistic approach financial planning is different from traditional planning because it starts with a focus on “the future” rather than “the now.” Additionally, plans to achieve goals are more flexible and dynamic. This method encourages people to identify long-term goals, explore and understand the totality of their finances, and take legitimate steps toward a solid financial future. For further reading on this topic, click here.

This article is purely informational. Seek professional financial advice as needed.

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