How does a Holistic Financial Planning approach and implementation help???

As a holistic financial advisor, we have clients the Clients think and answer a comprehensive investment portfolio questionnaire, and we consider all of the other assets of the client. This approach differs significantly from non-holistic wealth managers, who tend to ask for very little information — and then base decisions on just a handful of factors. A holistic approach, on the other hand, involves reviewing the details of several variables. These include:.
 Cash flow statement – We have clients make a budget that includes fixed expenses, discretionary expenses, income, and overall cash inflow and outflow.

 Net worth statement – This details assets and liabilities. The net worth statement is based on a checklist that asks for the nitty-gritty on bank accounts, retirement accounts, annuities, property, and any other assets.

 Emergency Corpus – The emergency corpus is a liquid, easy to access savings account. Before you tie up funds in an investment, it’s always important to make sure you have enough emergency cash to cover unexpected needs.

 Asset allocation statement – This details how much you have in stocks, bonds, cash, or real estate. As a subset of this category, it’s important to gauge how well diversified you are across asset classes.

 Insurance – Insurance is particularly critical because it protects all of your assets and investments for retirement. For instance, without health insurance, a client’s net worth might easily be wiped out if he or she needs long-term care. Your insurance overview should also cover life insurance and property /liabilities insurance in short.

 Pension estimates/income – This income stream is an important piece in your overall retirement picture, whether you’re planning for a future retirement or your current retirement cash flow.

A simple form with a few questions regarding only your Assets will never give you the bigger picture. As they say the devil lies in the details. The more holistic your approach the lesser the awkward surprises you will have in your financial well-being.
A holistic financial advisor will ask for current statements pertaining to bank accounts, business assets, personal property, qualified retirement accounts, deferred annuity accounts, investments, real estate, residence, Social Security benefit statements, pension estimates, and liabilities. From these documents, we prepare net worth, cash reserves, and asset allocation statements, which serve as the foundation for retirement planning. In our opinion, without this thorough preparation, providing an accurate retirement income projection is just impossible.
When you evaluate the kind of financial advisor (aka wealth manager) to trust with your retirement income, look for someone who can provide a comprehensive analysis and take a big picture approach, rather than just focusing on investment assets. After all, it’s only when you know the big picture that you can start to answer important questions about whether you have enough money to meet your retirement target date. Otherwise, you are making critical decisions without appropriate information.
Knowing your net worth (total value of your assets minus your liabilities) will set the benchmark by which you not only see how you’re doing now but also how you will be doing in the future. Many families do not even have a household budget, and thus have no idea where their money is going. Just starting a budget and putting together a net worth statement will be a huge step toward getting your financial house in order.
If you have any query we look forward to hear from you on info@uspfinpro.com