What a Full Relationship With Holistic Finance Can Look Like

For many people, beginning a relationship with a financial planner may come with an obvious question: What does working together actually look like?

At Holistic Finance, we believe financial planning can be about more than reviewing an investment account or creating a document that sits untouched after the initial meeting. We believe a fuller relationship can involve understanding where you are today, identifying where you would like to go, developing a financial and investment plan around those goals, and providing ongoing support as questions and decisions arise.

That approach can also provide a framework for responsible investment, particularly for people who want their investment decisions to reflect both their financial objectives and the issues that matter to them.

What Does Responsible Investment Mean?

The Principles for Responsible Investment, or PRI, states that responsible investment involves considering sustainability and governance-related factors with the aim of protecting and enhancing long-term value for clients and beneficiaries and, in some cases, achieving sustainability objectives. PRI also explains that responsible investment can extend across the investment process, including investment beliefs, decision-making, stewardship and reporting. Source

We believe this distinction matters because responsible investment does not necessarily mean choosing investments based on a single issue or following one predefined investment strategy. According to PRI, responsible investment does not require investing in a particular product or strategy. Instead, sustainability and governance information can be incorporated into investment and stewardship decisions when assessing risk and return. Source

For a Holistic Finance client, we believe the conversation can begin more personally: What are you trying to accomplish, what matters to you, and what role do you want your money to play in your life?

A Financial Plan Built Around Your Circumstances

We believe financial planning works best when the individual comes before the portfolio. The CFP Board describes financial planning as a collaborative process that integrates relevant elements of a client’s personal and financial circumstances to help maximize the client's potential for meeting life goals. The CFP Board identifies possible considerations including goals, assets and liabilities, cash flow, risk, educational needs, retirement, tax considerations, philanthropic interests, and estate and legacy matters. Source

At Holistic Finance, our approach is intended to begin with that broader picture. We believe an investment plan may be more useful when it is considered alongside your goals, values, current stage of life and financial capabilities.

Responsible investment can potentially become one component of that discussion. Depending on a client's objectives and available investment choices, considerations involving sustainability, governance or other personally important criteria may be discussed as part of the investment planning process.

This does not mean that every client's portfolio should look the same. We believe responsible investment should begin with understanding the individual rather than assuming that a particular investment approach is appropriate for everyone.

Planning Is Only the Beginning

Creating a financial plan can be an important step, but we believe the relationship should not necessarily end when that plan is delivered.

Life can present financial decisions that were difficult to anticipate when a plan was first created. You might consider a significant purchase. Your priorities may evolve. A market decline could leave you wondering whether your strategy still makes sense. A new goal could require reconsidering how different financial priorities fit together.

Our goal at Holistic Finance is to be available for those conversations.

We believe having someone familiar with your financial picture may help provide context when a new decision arises. Instead of viewing each financial question in isolation, it can potentially be considered in relation to the plan, investment strategy, personal priorities and longer-term objectives already discussed.

Investor.gov encourages prospective advisory clients to understand services an adviser provides, how fees are calculated, how clients can contact their adviser, and potential conflicts of interest. Source

We believe those are worthwhile questions to ask any financial professional before beginning a relationship.

Responsible Investment Can Be Part of a Broader Conversation

Responsible investment may take different forms.

PRI identifies approaches that can include integrating sustainability and governance analysis, screening investments according to specified criteria, thematic investing and stewardship activities such as engagement. PRI also notes that different approaches may be used separately or together depending on an investor's objectives. Source

We believe this flexibility is particularly important within holistic financial planning.

A client may care deeply about certain issues while also having specific retirement objectives, liquidity needs, risk considerations and other financial priorities. In our view, responsible investment discussions should not occur in a vacuum. They can potentially be considered alongside the client's broader financial circumstances and goals.

Importantly, we think responsible investment should not be interpreted as a promise of better performance or reduced investment risk. Investments can involve risk, and investment outcomes cannot be guaranteed. We believe any investment strategy should be evaluated according to the individual investor's circumstances, objectives and tolerance for risk.

Support When Financial Questions Arise

Our approach at Holistic Finance is designed to include an ongoing relationship rather than focusing solely on an account balance.

We want clients to feel that they can reach out when they have a financial question. That might involve discussing a large purchase they are considering or concerns they have about financial markets. We believe those conversations can potentially help clients evaluate decisions within the context of the strategy they have already developed.

That does not mean every financial decision has one objectively correct answer. Nor does it mean an adviser can predict what markets will do next. Instead, we believe ongoing communication can provide an opportunity to revisit the assumptions, goals and priorities behind a financial plan when circumstances change.

Investor.gov notes that brokers and investment advisors can differ in the services they provide and how clients pay for those services. It encourages investors to make sure a financial professional provides the services they expect and to review the firm's relationship summary for information about its services, fees and other important details. Source

We believe understanding the relationship before entering it is an important part of deciding whether a financial professional is right for you.

From Where You Are to Where You Want to Be

At its core, our philosophy at Holistic Finance is based on a simple idea: We believe financial planning should meet you where you are.

That may mean starting with fundamental financial questions. It could mean developing an investment strategy around established goals. It may include exploring responsible investment considerations and determining how they could fit alongside your financial objectives. It can also mean having someone available to discuss financial decisions as your circumstances evolve.

We believe the value of a full financial planning relationship can potentially come from connecting these pieces rather than treating each one separately.

Your goals can inform the plan. Your plan can inform your investment strategy. Your values may inform responsible investment considerations. And ongoing conversations can potentially help keep those elements connected as life changes.

For people who have never worked with a financial planner, the process may initially feel unfamiliar. Our goal is to make the relationship understandable, personal and centered on the financial life you are trying to build.

At Holistic Finance, we believe that means being there not only when an investment plan is created, but also for the questions and decisions that may come afterward.

‍

‍

Disclosures
This article is provided for general informational and educational purposes only and should not be construed as individualized investment, financial, tax or legal advice. References to responsible investment are educational and do not constitute a recommendation of any particular security, investment product or strategy. Investing involves risk, including the potential loss of principal. Individual circumstances vary, and any investment approach should be evaluated based on the investor's objectives, circumstances and applicable disclosures. Advisory services are offered through Holistic Finance LLC an SEC Investment Advisor. Holistic Finance LLC is not affiliated with or endorsed by the Social Security Administration or any government agency.

‍