A HOLISTIC APPROACH TO FINANCIAL PLANNING

What is a “Holistic Plan?”

It’s not uncommon to hear the term “holistic plan” in the financial planning and services industry. Most companies hold themselves out as experts in creating a “unique plan” for their clients while providing little to no insight into how the desired outcome will ultimately be achieved. This article will outline some things to look for and share why Whitaker-Myers Wealth Managers is a good fit for you.

Age and Risk Tolerance

What you do with your money today, in many ways, will impact what your life looks like in retirement. We all want the peace of mind that we will have what we need in retirement while simultaneously avoiding the alternative. When you sit down with an advisor, age and risk tolerance are often among the first questions asked. Still, it’s important to consider much more to develop an investment strategy that fits your specific needs. Let’s illustrate it this way: If you are young, with a long-time horizon, it can be said that you want a penthouse view of the ocean. When storms roll in, you’re okay with the risk because the sunrises and crystal-clear days make it worth the price of admission. When you’re in retirement, you want the safety of fixed income, much like the safety of a first-floor beach access unit, with a quick escape if the entire building catches on fire. This illustration can help delineate between equity and fixed-income investing, but it is by no means exhaustive. Simply put, each investor brings more to the table than just their age and risk tolerance.

But What Else?

There is no doubt that equity and fixed-income investing should be a part of all portfolios at one time or another. Determining specific allocations into each category depends on age and risk tolerance, but many more things must be considered. Alternative investments have a place in certain portfolios. However, the reality is that only some advisory firms have access to and an understanding of how certain alternatives fit into the portfolio mix. Dave Ramsey often talks about the positives of mutual fund investing. He also discusses the benefits of real estate investing, creating a nicely diversified portfolio, and an appropriate portion of investments that aren’t correlated to the stock market. There are alternatives to fixed-income investing that can be right for specific clients, again punctuating the importance of looking critically at each client’s entire portfolio and financial plan. Investing and financial planning are complex topics that deserve time and attention for your sake.

At Whitaker-Myers Wealth Managers, we are serious about thinking critically for our clients, giving them options, and ensuring, with the heart of a teacher, that they understand what we’re doing with their investments and why. If you are looking for an advisor or have questions about investing, reach out to our team today.