/hōˈlistik/ - adjective
characterized by comprehension of the parts of something as intimately interconnected and explicable only by reference to the whole.
/fəˈnan(t)shəl ˈplaning/ - adjective
the process of making plans for something related to finance.
Holistic Wealth. Holistic Medicine. Holistic Education. Holistic Wellness. A holistic approach means thinking about the big picture. Each change you make to one part affects the whole.
Holistic Planning is addressing your client’s whole life. Not just their financial life.
It’s demonstrating an understanding of a client’s finances, desired goals and aspirations, and assumptions to ultimately convey an analysis of future outcomes on one or more financial topics and may include recommendations.
Understanding your clients can put them on the right path to achieving the goals they have set out to accomplish. And the map to guide them on that path is a financial plan.
The 7 steps of Financial Planning outlined by the CFP board are the guiding principles and are rooted in Holistic Planning’s focus on looking at a client’s complete financial picture.
This seven-step model represents a complete workflow that establishes productive, long-term relationships. When faithfully executed, clients will view financial planning as a collaborative process that’s intrinsic to achieving their life goals.
of advisors expect to expand comprehensive financial planning services to more than half of their clients through 2020, increasing from only one-third of their client base in 20131.
of advisors believe the importance of financial planning has and will continue to increase over time2.
of surveyed advisors stated that there will be an increased focus on holistic financial planning within their practices moving forward3.
By taking a top-down approach, focusing on a client’s goals, advisors can strengthen their relationships and create value among existing and prospective clients.
When asked to name top priorities for choosing to work with an advisor, Gen X investors stated that years of experience (43%), and personalized advice for a holistic financial picture (37%) were leading reasons.4
The CFP Board emphasizes a holistic approach based on their objective to make certain advisors get a full view of the client’s goals so that clients aren’t receiving advice that isn’t in their best interest.
Some advisors may find operating in holistic planning is more professionally fulfilling as they become a trusted partner in helping clients achieve their life goals. They can provide meaningful advice across various life moments and opportunities.
According to a recent Fidelity study, over the last year, when compared to other advisors, advisors practicing Holistic Wealth Planning reported 47% higher growth in AUM and 67% higher growth in number of clients.2
According to a recent Fidelity study, advisors who practice Holistic Wealth Planning grew their clients/HHs by 13% on average, compared to 8% among others, in the past year.2
The importance of leading with planning and delivering an experience clients expect from their advisor has taken a new direction with today’s changing environment. By anticipating client needs and preemptively exceeding them, you can deliver value in new ways—pushing boundaries and rethinking possibilities.
The creation of a holistic financial plan and providing the confidence and control for clients to achieve their financial goals and milestones is the experience that will help clients live the life they want.
"I think the more deeply you know and understand your client, their vision, and their values, the more you can actually tailor their financial plan."
CEO of Abaris Financial Group
"As financial planners, your focus is not just on their wealth, it’s on their future wellbeing. Focusing on that really changes your perspective. It makes your clients happier. It makes your life more full."
Bill Simonet, CFP®
Principal Advisor of Simonet Financial Group
"I’m always looking for the greater purpose in a client relationship. It goes beyond money—I have a responsibility to protect families and help them achieve their goals."
CEO and Senior Wealth Advisor
Wymer Brownlee Wealth Strategies
of investors say that by 2022 an advisor’s ability to provide holistic goal planning will be most important when they’re selecting a financial advisor5.
investors say an advisor can build trust with them by “customizing their approach to my needs.”6
of investors would be willing to pay more for an advisor who provides a clearly defined roadmap of how they can financially achieve all of their lifetime goals.7
The holistic planner is adept in the conversation around both the financial and emotional well-being of their clients. They are more comfortable discussing life events with their clients2. These areas can build trust, create value, earn loyalty, and open up opportunities you may not have discovered through traditional financial planning.
You’re on the right track to offering holistic, comprehensive financial planning! If you made it this far and still having doubts, check out this 5-day email course developed by CFP® professionals on how to tackle the most common hurdles to offering holistic planning.
Planner Pam sets up a video call with her clients, Joel and Ashley. She takes this time to understand Joel and Ashley’s family dynamic, current jobs, existing assets and long term goals and aspirations they have for themselves and their family. In a follow up meeting, Planner Pam shows what their complete financial picture looks like and the plan she puts in place for them. She lets Joel and Ashley review and has them lead the discussion to develop a plan that makes them comfortable and puts their dreams at reach.
Great choice! Establishing a relationship is foundationally important to building a holistic plan with your clients.
Advisor Amanda gets a referral for a new client, Bob. Amanda’s admin reaches out to Bob asking him to fill out paperwork and bring the necessary information to complete his financial profile. Amanda goes through the data collected and puts together product recommendations and an investment plan for Bob to achieve financial success. Bob comes in for a meeting and Amanda delivers a large packet detailing his current financial status and a proposal to help grow his finances.
Good plan, but see what Holistic Planning could do for your business and your clients.