Why Holistic Financial Planning Is Essential

By - Eng Khoon
02.08.22 11:17 AM

Traditionally, financial planning has always been about focusing on the numbers in your portfolio. In the 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 your returns. 

However, 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. This is what we call the holistic approach to financial planning. 


The holistic approach considers your values, future goals, your current health, your family situation, and other variables that are unique to you; offering a personalized financial plan that evolves and adjusts based on changes in your life, the economy, the tax environment, and what is happening in the stock market.


Basically, when you take a holistic approach to financial planning, you acknowledge that both your life and your money can’t be controlled by a checklist. The big question is: How do you plan your wealth so that you’ve got all your bases covered accordingly? How do you ensure that despite the volatile market, your portfolio remains resilient and allows you to set aside funds for emergencies?


It’s key to understand why financial planning is important. There are a number of benefits of holistic financial planning. 

The first is that the process helps you prioritize your goals. Whether you choose to retire early versus working longer to maintain a certain lifestyle and ensuring a certain level of wealth for your beneficiaries or charity, holistic financial planning helps you identify what’s important to you. 


Secondly, a holistic financial plan also gives you the flexibility to change course as your life evolves. It should be continually evaluated and updated based on what’s happening in your world, whether good or bad.


Thirdly, you’ll be able to set milestone-specific financial decisions, such as purchasing a new home, taking a family holiday or more. Understanding the trade-offs is important so you can feel confident in the financial decisions you make.


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. This is why you may need a financial advisor to help you out with planning out your holistic financial plan.

At SK i-Wealth, our expert advisors are on hand to understand the journey of building your financial journey, and can help at whatever stage you are at currently. Here are 3 benefits you can expect by engaging with our financial advisors.


1. Personalized 

Holistic financial planning requires that your advisor 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.


2. Adaptable 

A holistic approach to your finances and investments means that decisions are made with your priorities and timelines in mind. Your advisor will be constantly monitoring your portfolio for performance and the need to adjust and give you that flexibility in your financial plan when you need it.


3. Comprehensive 

Holistic planning takes into consideration every financial and personal need from managing your money to accumulating wealth to leaving a legacy. Your advisor should understand your background, wealth accumulation goals and personal values. This helps you to reach your financial goals easily. 


Opting for holistic financial planning is a smart strategy that focuses on how your money serves your life, not just the numbers on a few account statements. Having the right advisor also helps you navigate the inevitable changes that happen in life and adjust your financial plans accordingly. When it comes to your finances and investments, it definitely pays to take a holistic approach.


We hope you enjoyed the article. 


At SK i-Wealth, we offer a full financial service solution for individuals and companies, including retirement planning services. Our firm’s comprehensive wealth platform and experience supports a team of Financial Integrators with the resources they need to deliver integrated financial solutions according to your needs.