Holistic Financial Planning

This week’s Financial Question is about holistic financial life planning.

QUESTION

Duncan, ‘holistic financial planning’ – is it not all a little quirky and touchy feely for us Brits?

ANSWER

By Duncan R Glassey

Surprisingly it’s more ‘kicky punchy’ than touchy feely – allowing you time to visualise your personal goals before asking your financial planner to model the financial consequences of those choices.

It adds a holistic element to the process of financial planning by considering the non-financial decisions that we make throughout life; directing us toward achieving specific personal goals rather than the more nebulous target of building wealth and maintaining financial independence for the future.

Although many Certified Financial Planners (CFPs) understand the increasing need to take a more holistic approach with their clients, many financial services advisers remain uncomfortable advising on the bigger picture – convinced that the client will not pay for extended “discovery meetings” to communicate as a whole person. But, intuitively, wealthy clients see the wisdom in developing a plan to use their money to make a life, after having spent most of their life making money; their values and the legacy they choose to leave is now fundamental to how they feel about money.