Savings and cash flow are the key areas people worry about when considering their financial plans and wealth management, especially when looking to the future. Whether retirement is approaching, you want to sell a business, or set up a legacy for loved ones, a happy future isn’t only about finances.
A holistic investment approach takes that focus on finances and adds in a few more things to ensure that your investments and savings work for you in every way. While finances have a big impact on everyone’s lives, a financial advisor only focused on crunching numbers misses out on the chance to align your finances with the way you want your life to go. Consider what you want to do and where you want your wealth to take you and your loved ones.
Especially for clients who have a hard time seeing the big picture of what their wealth can do – thanks to long work hours, not enough information about strategies, or hyper-focus on specific goals – a holistic investment approach brings it all together, personalizing financial planning beyond facts and figures.
How Does Holistic Investment Work?
If money is the only focus, it’s easy to drop a number into a formula to decide how to invest. A financial advisor might look at your age, your income, your risk tolerance, and what you’re saving for in order to give you a suggested figure to invest. A holistic investment approach looks a lot different.
Under this model, your financial management partner gets to know you and the bigger picture of your life. They do this by digging deeper to understand all of your assets and estate planning concerns. They will want to know how life events like illness or buying a home could impact your wealth, family dynamics, your values, and so on. This approach builds a relationship on which your financial management is founded.
From there, a holistic investment approach gives you not just a figure to invest, but a road map to how specific investments could get you closer to your goals, improve your quality of life, and reduce your stress. You’ll know that you have made a good decision based on who you are and what you want to do with your life.
A Deeper Understanding of Your Goals
Of course, we all want to be secure with our wealth and investments. One of the big benefits of a holistic investment approach is that you will gain a better understanding of why you want that security, which then informs the way you invest. Holistic planning marries this information with a strong understanding of assets, markets, liabilities, timelines, and income requirements to create a plan that is as individual as you.
A holistic investment approach can take you from “I want to be rich” to “I want my kids to remain financially comfortable” or “I want to enjoy my retirement, traveling and having new experiences.” Each of those statements calls for a different kind of investment, a different risk tolerance, and a different financial plan.
Understand that a holistic investment approach usually puts you in the qualified, experienced, personalized service of one integrated wealth management firm, which handles all aspects of your financial advising. That means that you benefit from keeping your wealth out of a siloed approach, in which one advisor might not know what another is doing, exposing you to unnecessary risk and redundancy.
Do More with Your Assets
If holistic investment sounds good to you in principle, you will be pleased to know that the statistics show that it pays off. Best practices including this integrated approach can earn investors an additional 1.50 percent to 3 percent annually. Applied over thirty years, this makes a difference of millions.
You can also quickly change approaches with a holistic investment plan. Your advisor knows who you are, what you want and need, and how your wealth impacts all of that. If you’re expecting a major life change or something takes you by surprise, your advisor can do more with your assets. He or she will help get you any challenges successfully, all based on your lifelong goals and values.
To learn more about holistic investment approach and how it can help you to meet your objectives, please get in touch with Brix Wealth Management online or call us at (212) 578-2048. A member of our professional team is looking forward to listening to your needs and answering any questions about how a holistic investment approach can benefit your wealth management.