Why Holistic Planning Is Important

Why Holistic Financial Planning is Important
By Jed Inzerella, CFP®, RFC

Why Holistic Financial Planning is Important
Most often, clients are the only ones able to see their entire financial picture. Since most individuals do not have expertise in financial planning, tax and accounting, insurance, estate planning, etc., they seek out subject matter experts who assist them in each of these areas. The problem with this scenario is that each expert sees the client with blinders on through his or her own lens. Typically, these professionals, often salespeople, only recommend products based on their limited knowledge of what a client needs. These experts do not know what the other is doing, and it can be a time-consuming and expensive process trying to get multiple professionals like an attorney, accountant, financial advisor, and insurance agent sitting across the table from each other to create an individualized plan to meet your needs.

The Benefits of Holistic Planning
Since siloed professionals are making recommendations based on their limited scope of knowledge, the resulting financial plan is based on a series of disorganized decisions. Instead, a holistic financial plan considers all aspects of your financial situation as a unified whole. There are several benefits to this approach, but one of the most notable is how a holistic plan incorporates your current tax position. A comprehensive financial plan incorporates the tax implications of your investment decisions because no one should be paying more taxes than is required by law.

This type of personalized financial planning also considers your values, future goals, your current health, your family situation, and other variables that are unique to you. Holistic plans evolve and adjust based on changes in your life, the economy, the tax environment, and what is happening in the stock market.

I’ve always said that the only diversification I don’t believe in is having a diverse set of financial advisors. Many people think they are diversifying if they have multiple financial advisors but to create a good holistic plan, you need to work closely with one individual who can see all the pieces of your financial puzzle. If you are engaging multiple advisors, you may be over or under-invested in certain areas. The smartest decisions come from seeing the entire picture.

How Darnall Sikes Wealth Partners Incorporates Holistic Planning
We create a logical structure for establishing and tracking your financial goals and making decisions. We provide a comprehensive view of your financial health and deliver insights that allow for timely adjustments and course corrections when necessary.

When we create a holistic plan, we begin by gathering data about your current situation and examine your short-term and long-term financial goals. We assess areas like cash flow management, retirement, investments, insurance, legacy planning, tax management, and education. By working together, we analyze and decide on a plan and then start executing the final plan.

How We View Investments
We realize investments are an important and crucial part of your financial plan, but we think it is a mistake to view investments as the answer to every problem. You cannot invest your way into having appropriate auto insurance. You cannot invest your way out of paying more taxes. And you cannot invest your way out of spending more than you make.

We understand you will review your investment portfolio or your tax situation more often than other areas of your plan, but a holistic approach means that if you make a change in your portfolio that impacts your estate plan, you will not need to call your financial advisor, they will already know. Holistic planning gives you a complete view of your financial situation so you can have complete confidence in your decisions.

Interested in learning more about holistic financial planning? Schedule a consultation.