Focusing On What's Important

William Miller |

When thinking about our physical health, it’s common for people to take a holistic approach—that is, we think about ways we can practice being healthy overall, like eating a balanced diet and getting an adequate amount of sleep and exercise. Keeping our bodies healthy means improving our quality of life. So why don’t we take this approach with every aspect of our lives, including our finances? What does it actually mean to be holistic when it comes to your finances? Here’s what you should know.

Focusing on Your Goals

Many financial professionals will give you advice on specific products, services, or investments. They might help you with how to invest your 401k or help you set up a 529 college savings plan for your child. Financial professionals who give true advice will focus on your goals first and foremost, rather than investment portfolios. Advice should create a solution to help achieve your specific goals.

Your financial health doesn’t exist in a silo; your financial planning shouldn’t either. Instead of plugging numbers into an algorithm to figure out how much you should save for retirement, you should focus on the bigger picture, which takes into consideration your goals and aspirations.

A financial planner might ask questions like, “What do you want to accomplish between now and retirement?” and “What do you want your life to look like when you retire?” Everything you do affects your financial situation, which is why it’s so important to consider all aspects of your life when thinking about investments and savings strategies.

Aligning with Your Values

Another benefit to financial planning is that it can directly align with your values. Most individuals view a financial planner as asset managers, so in that case the focus is on the best outcomes for your portfolio. However, it also may mean investing in companies whose mission and values don’t align with yours.

Real financial planning means you can choose to invest ethically; for instance, you may decide you would like to invest only in socially responsible companies. A financial planner can help you invest in companies whose values align with yours, while also aiming towards positive outcomes for your finances.

Developing a Relationship with Your Financial Professional

Most importantly, financial planning often leads to a deeper, more trusting relationship between you and your financial planner. Your planner is involved in many aspects of your life and your goals. They understand how they can help when you experience difficult and confusing financial situations such as down turn in the market, unexpected job loss, critical illness or even just buying a new home.

A trusted planner can go a long way when it comes to managing your financial life. If you’re looking for someone who can help you reach your investment goals while also aligning with your values, WM Wealth Planning can help.



*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax, legal, or investment advice and may not be relied on for purposes of avoiding any federal tax penalties. Individuals are encouraged to seek advice from their accountant, financial planner, and counsel. Neither the information presented, nor any opinion expressed constitutes a representation by WM Wealth Planning as a specific recommendation to the purchase or sale of any securities/investment. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by WM Wealth Planning for educational purposes. *