Are your financial decisions based on your life goals or solely on number crunching?
When it comes to your finances and investments, it pays to take a holistic approach. Financial planning is about more than just focusing on the numbers in your portfolio. It’s important to look at your financial plan with your personal values, lifestyle and legacy goals in mind to create objectives that will see you through your short- and long-term goals, creating a foundation for sound decision making and, ultimately, a brighter financial future.
Traditional versus Holistic Financial Planning
In a traditional financial planning model, an advisor would look at a collection of assets, recommend specific investment vehicles that would balance exposure in the market and apply the same approach to achieve one goal – maximize returns. With a holistic approach, your advisor considers your assets, expenses, liabilities, time horizons, lifestyle, legacy goals, as well as the fluctuations in the market to grow and protect your savings.
Holistic planning goes far beyond traditional financial planning. It is a broader and deeper process that includes in-depth member conversations, extensive research, and ongoing analyses.
Three benefits of a holistic financial plan with an expert advisor:
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Personalized to align with what’s most important in life to you
Holistic financial planning requires that your advisor develops a deep relationship with you. They should fully understand your current situation, future opportunities and potential risks, your motivations and concerns, and your overall relationship with money. When an advisor understands you as an individual, they can support you through your entire financial journey.
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Adaptable to your life transitions giving you flexibility when you need it
A holistic approach to your finances and investments means that decisions are made with your priorities and timelines in mind. You will have regular check-ins with your advisor and they will suggest a cadence for check-ins but when something happens like a large purchase, new job, a baby or the addition of a vacation because of a destination wedding, your advisor should be updated. They will constantly be monitoring your portfolio for performance and the need to adjust. By keeping your big picture in view at all times, you’ll have flexibility in your financial plan when you need it.
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Comprehensive to give you confidence that your financial plan is always on track
Holistic planning takes into consideration every financial and personal need from managing your money to accumulating wealth to leaving a legacy. Advisors that take this approach, understand your background, wealth accumulation goals and personal values. Consolidating your professional advice will deepen your advisor’s understanding of your entire financial picture. Working with one advisor could accelerate your timeline for reaching your goals.
Advisors with this approach understand the journey of building a financial pyramid and can help at whatever stage you are at currently.
A financial advisor’s role
A financial advisor taking a holistic approach should:
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Build a personal relationship with you.
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Meet with you regularly to help and guide you through the issues that matter most to you.
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Clearly explain each part of your financial plan, investment selection and how you are tracking towards your goals.
Advisors take a holistic approach when evaluating your financial situation, goals and aspirations to empower you to make strategic financial decisions. Whether it is everyday financial stresses from managing debts, to feeling like your investment profile isn’t structured to you, to employing tax strategies, by focusing on the bigger picture and working with an expert advisor, tracking these key variables will be easier and less stressful.
Be confident about your financial plan
Get strength and stability in your plan by taking a holistic approach. Advisors will work with you to reach all of your financial goals. They will build a relationship to understand what motivates you, makes you happy and what concerns you, in order to build a plan that fits your life and legacy.
Valley First is a premier provider of banking, investment and insurance services for residents and businesses in the Okanagan, Similkameen and Thompson valleys. As a division of First West Credit Union, B.C.'s third-largest credit union with 46 branches throughout the province, Valley First brings innovative products, an extensive branch network and local decision making to the banking experience. For more information on Valley First, visit www.valleyfirst.com.
