The Benefits of Holistic Financial Advice

The Benefits of Holistic Financial Advice

January 21, 2022

When thinking about physical health, it's common for people to take a holistic approach — we think about ways we can practice being healthy overall, like eating a balanced diet and getting an adequate amount of exercise. Keeping our bodies healthy means improving our quality of life.

So why don't we take this approach with other aspects of our lives, including our financial health?

Holistic financial planning is quickly rising in the ranks of money management techniques among financial professionals. But what does it mean to be "holistic" when it comes to your financial health? At Liberty Wealth Advisors®, we encourage you to embrace this concept as you refine and progress toward your goals for your financial future.

Focusing on Your Life Goals

Many financial professionals will give you advice on specific products, services, or investments. They might advise you on an IRA to invest in or help you set up a 529 college savings plan for your child. But financial professionals who give holistic advice will focus on your life goals first and foremost. They develop strategies to help you 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, we feel you should focus on all of your goals and aspirations – buying a home, funding a new business or college tuition, etc. – not just your retirement goals.

As holistic financial planners at Liberty Wealth Advisors®, we ask questions like, "What do you want to accomplish as your long-term financial goals?" and "What do you want your life to look like after you retire?" Everything you do can affect your financial health, which is why it's so important to consider all aspects of your life when thinking about investments and savings plans. We seek to understand all of your goals and why they are important to you.

Risk Tolerance

Another benefit to holistic financial planning is ongoing attention to your personal level of risk tolerance. There is a very human element to it that must be taken into account. Risk tolerance is more than the percentage of loss in your portfolio you are willing to stomach – it's a matter of whether that loss has consequences like loss of confidence or peace of mind. A holistic financial advisor will look beyond your portfolio when assessing your level of risk tolerance and consider other factors such as your estate plan, unique goals, and total assets.

Discussing potential market volatility allows individuals to become more comfortable with the level of risk they are taking in their portfolio, and why. A trusted financial advisor can help an investor distinguish between "required" returns and "desired" returns, resulting in a portfolio and risk level that are better suited to your personal financial goals. This enables investors to better navigate periods of increased uncertainty in the market, so they can stay on track with their plan (which takes into account changes in market conditions) and achieve their goals.

Developing a Relationship is the Goal

The team at Liberty Wealth Advisors® feels that holistic financial planning leads to a deeper, more trusting relationship with our clients. As a result, we can understand how we can help when you experience difficult or confusing financial situations, such as divorce, sudden job loss, critical illness or even just buying a new home. We are your resource for every decision that has a dollar sign attached to it.

A trusted professional can go a long way when it comes to ensuring your financial health. If you're looking for someone who can help you reach your investment goals while also taking into account your personal risk tolerance and considering major life events, as holistic financial professionals, we care—and we can help.

This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented, nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets.