Does holistic financial advice translate into higher returns?

For the longest time, wealth management services were confined to building and managing financial portfolios for clients. Then came a holistic approach to financial planning, which promised superior outcomes by looking beyond simple portfolio returns to consider all aspects of an individual’s financial life. But how exactly does holistic financial planning play out and does it really translate into higher returns?

In this post, I delve into the details of holistic financial planning to help you decide if working with a holistic financial advisor makes sense for you – and when you should make the switch.

What is holistic financial advice?

Holistic financial planning (or comprehensive wealth management) considers all aspects of an individual’s financial life. This goes beyond traditional advice on investments and retirement planning to encompass areas such as budgeting, debt management, insurance, tax planning, and estate planning. The goal is to create a tailored strategy that aligns with the client’s overall financial goals and values.

Promised benefits of holistic financial planning

The Parkyn—Doyon La Rochelle team has been staunch advocates for holistic financial advice for over 25 years. Based on our experience, we have seen that superior outcomes can be achieved by recognizing the interconnected nature of all financial decisions.

How holistic wealth management works

All holistic financial advisors take a comprehensive view of the client’s financial life, but each team will have its own approach and skillset. That being said, there are some key steps that are typically involved in holistic wealth management services:

• The advisor will first meet with you and take the time to analyze your goals, values, financial situation, time horizon, and risk tolerance and capacity to tailor recommendations that optimize and simplify your financial life.
• The advisor will then propose a multi-pronged approach that includes investment management, financial and tax planning as well as inter-generational wealth transfer & philanthropic planning.
• This multi-pronged approach will typically include a comprehensive roadmap that meticulously addresses and plans for major life events as a unified whole to optimize your financial well-being and overall quality of life.
• Once the approach and roadmap have been agreed upon, your financial expert becomes your trusted “quarterback”. They will often collaborate closely with your chosen accounting, legal, and insurance advisors to optimize financial efficiency, while balancing both your personal and business goals.
• Your advisor will continue to provide ongoing guidance and support that adapt to your ever-evolving circumstances, understanding that your financial, family and professional situations will not remain static over time.

When is the right time to switch to holistic financial planning?

Most conventional financial planning will overlook at least a few key aspects of your financial life. If you are losing sleep over these missing aspects, it’s probably a sign that your current financial plan is not as comprehensive as it should be. This can be a good time to talk to a holistic financial advisor.

We have clients that come to us in their early twenties right up to the cusp of retirement. They may be just starting to think about their financial future, or at the point where they’re ready to solidify the legacy they will be leaving for future generations.

While the decision to switch financial advisors should never be taken lightly, it need not be painful or difficult. A good financial advisor will know how to guide you in the secure transfer of your assets and do all the heavy lifting, collaborating closely with the legal, tax and other advisors you know and trust. At the same time, they’ll ensure you retain full visibility and control over your finances.

By meticulously addressing and planning for life events as a unified whole, holistic financial planning can optimize your financial well-being and elevate your overall quality of life. Just like the harmony of a well-composed piece of music, success is achieved when all elements come together.

See all our holistic wealth management services >

Want to know more about our approach to holistic wealth management?

CONTACT US

For more commentary and insights on investing and personal finance, be sure to listen to our latest Capital Topics podcast and subscribe to never miss an episode. And download your free copy of our popular eBook Seven Deadly Sins of Investing.

The history of holism

The year is 1926. South African Prime Minister and natural science enthusiast Jan Christian Smuts coins the term ‘holism’ in his book Holism and Evolution. In it, he defines the concept as: “the tendency in nature to form wholes that are greater than the sum of the parts through creative evolution.”

The word ‘holistic’ was born out of this philosophy, and is employed today in many fields, to illustrate the importance of considering the whole, in lieu of focusing only on individual parts.

That same year, in London, England, Sir George Martin was born. Soon renowned for his musical brilliance and prowess as an arranger and producer, he earned the moniker of the “fifth Beatle.” Martin’s extraordinary knack for recognizing and amplifying the individual talents of John, Paul, George, and Ringo, transforming them into a cohesive force, became the stuff of legend. Understanding that the collective impact of the Beatles transcended their individual abilities, he played a pivotal role in shaping their enduring musical legacy, which continues to captivate audiences over six decades later.

The whole was always going to be bigger than the sum of the parts.

At Parkyn—Doyon La Rochelle, we work with primarily highly successful Canadians who want to optimize their wealth in a way that aligns with their lifestyle and values. They also want to preserve their legacy and create a positive impact beyond their lifetime.

To help clients achieve these goals, we combine comprehensive financial planning with optimal portfolio management techniques. We also craft strategic plans that seamlessly transfer wealth across generations while aligning with the client’s philanthropic values.