Many individuals see investing in retirement as a long-term financial goal that doesn’t intersect with their overall financial planning. Consequently, many choose to delay investing in retirement so they can focus on more short-term financial goals, like reducing student debt or buying a house. 

While this plan may make sense at the moment, in the long run, it may do more harm than good. Don’t just take it from us – one of the biggest regrets retirees have is not investing in retirement sooner. 

So, how do you sustainably tackle short-term and long-term financial goals simultaneously? By taking a holistic approach to your financial planning.

What is a holistic financial approach?

When taking a holistic approach to financial planning, you evaluate all of the numerous financial factors that make up your overall financial well-being and strategize a financial plan that takes all of these factors into account.

Factors can include items like your mortgage, taxes, medical bills, day-to-day expenses, investment accounts, and more. 

How is holistic financial planning different from conventional financial planning?

Unlike conventional financial planning, holistic financial planning aims to manage your finances as a whole. With this approach, you work to accomplish all of your financial goals, both short-term and long-term, simultaneously.

Conventional financial planning on the other hand aims to accomplish one financial goal at a time, usually a short-term goal. The issue with this approach is that it neglects to factor in long-term goals, such as retirement, which can work negatively against you.

How do I take a holistic approach when planning for retirement?

First, speak to a financial advisor. When you go to a financial advisor, they may ask you a series of questions to get a better understanding of your current financial situation and your goals. 

Things they may ask about can include your estate, income stream, asset allocations for current investment accounts, any liabilities you may have, and more.  

We always advise that you speak to a financial advisor to help guide you when planning your finances, including retirement. Each person’s situation is different and unique.

Overall, taking a holistic approach to your finances is a sustainable way to achieve all of your financial goals, both long-term and short-term, while setting yourself up for financial success and independence. 

Get a head start on your financial goals by enrolling in your SaveDay 401(k)! If your employer doesn’t have a 401(k), have them reach out to us today.

For more information on holistic financial planning, visit these sources:

https://www.psafinancial.com/2015/01/the-value-of-holistic-approach-to-retirement-planning/

https://www.realworldfp.com/financial-planning-blog/2019/4/8/what-is-holistic-financial-planning

Photo by Karolina Grabowska from Pexels.

*This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. SaveDay makes no warranties with regard to such information or results obtained by its use and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation and before engaging in any transactions. The information may not reflect the most current legal developments and is not guaranteed to be complete, correct, or up-to-date.

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