Many people hear the term “wealth management” and assume it refers to a financial advisor or investment advisor who manages your investment portfolio. In fact, many people might think wealth management isn’t for them if they don’t have a lot of money. But that couldn’t be further from the truth. In fact, because of the well-rounded and goals-based approach that holistic financial planning takes, it may be well-suited to the average person.  

Holistic wealth management – or holistic financial planning – is a type of financial planning that creates a plan based on your preferences and what life stage you’re in. It goes beyond just investment management, or even just money management. It also accounts for your personal goals, major life events, and the future you see for you and your family.  

How does wealth management work?  

Here’s a list of the services wealth management is likely to include:  

Goal setting: In some cases, you might visit a financial planner because you have specific goals you want to reach. But if that’s not the case, the financial planner can help you identify them.  

Life event planning: Another important role of a holistic wealth manager is helping you plan for life events like marriage or divorce, having a baby, buying a new home, and more. These may be singular events, or they might be events that will impact your finances for years to come.  

Cash flow management, spending, and budgeting: As a part of comprehensive financial planning, a wealth manager will help you identify the money coming in and going out and help you find a better balance in your spending.  

Debt management: If you’re working to pay off debt, a wealth manager will help you prioritize your debt and craft a debt payoff plan that works in cohesion with your other financial goals and plans.  

Protection: An important part of managing your finances is protecting them. This step includes helping you build an emergency fund and ensuring you have the appropriate insurance policies in place for every possible emergency.  

Portfolio diversification: By limiting exposure to any one sector, size, or style in favor of greater diversification and balance, you may be better positioned against downside risk when a particular market or segment declines. 

Growth: As you would imagine, an important part of wealth management is helping you to grow wealth. A planner does this by helping you craft your asset allocation and manage your investment portfolio in a way that fits your goals and risk tolerance.  

Retirement planning: Planning for retirement is one of the most important jobs of any financial planner. A holistic wealth manager will help you identify your retirement goals and make sure you’re on track to reach them. They'll look beyond just the money you’ll need during retirement to examine what you really want your life to look like during those years.  

Tax planning: Your planner can help ensure you’re doing everything correctly as it relates to your taxes and can identify ways to help you reduce your tax burden.  

Estate and long-term planning: A wealth manager will work with you to create a long-term plan that includes what will happen to your assets after you pass away.  

Charitable giving: Many people want to be more generous in their later years, using some of the wealth they’ve worked to build in a way that helps others. A financial planner can help you do this in a way that benefits not only those you’re giving to, but also your own finances.  

Our take  

Wealth management should ensure your financial moves and personal goals and values really line up. It should also support you through every phase of life, and different life events, to ensure your finances are prepared and protected.  

Remember, holistic financial planning isn’t just for wealthy individuals. Because of the comprehensive approach it takes, it can help anyone set and reach their financial goals and feel confident in their money.