Young couple with baby, looking over finances

Holistic Planning: Why It’s Important for Younger Individuals

Young couple with baby, looking over finances

Traditional financial planning often focuses on traditional topics such as retirement and wealth accumulation, but those methods often fall short of meeting the diverse needs of younger individuals. For many young adults, these long-term goals may not resonate with their immediate priorities and aspirations. Enter holistic financial planning – a comprehensive approach that aligns financial strategies with an individual’s values, lifestyle, and overall well-being.

Younger generations, such as Millennials and Gen Z, are forging their own paths, challenging long-standing societal norms, and redefining success on their own terms. Some prioritize experiences over material possessions and wealth accumulation, while others pursue entrepreneurial ventures or unconventional career trajectories. Holistic financial planning acknowledges these diverse life goals and tailors strategies accordingly. It does so in more modern ways, rather than solely focusing on numbers and investments.

At HighPoint Advisors, LLC, we aim to help clients in Syracuse, central New York, and other markets make informed decisions as they begin (or continue) the journey toward financial independence. In this article, we’ll explain and explore some of the key areas and benefits of holistic financial planning for younger individuals.

Cash Flow Is the Foundation for Younger Adults

Unlike older generations with established assets, young adults often struggle with managing cash flow – balancing income, expenses, and debt. Holistic financial planning emphasizes cash flow planning, which is a much more vital need for many young people. This involves helping clients develop budgeting habits, manage student loans, and navigate major life transitions like moving out, starting a family, or changing careers. With student loans becoming increasingly burdensome in recent years, many young adults find themselves grappling with substantial debt early in their careers. That debt can be a major obstacle standing in the way of any real progress toward reaching any life goals, such as saving for a first home or starting a business venture.

Aligning Money With Purpose

Holistic financial planning recognizes that money is a means to an end, not necessarily an end in itself. While that may sound like a rogue idea, there is merit in the idea for younger generations. By understanding a client’s values, passions, and aspirations, advisors can craft financial strategies that enable these clients to live with the sense of purpose they are seeking. Whether it’s funding a passion project, supporting a cause they care about, pursuing social impact goals, or achieving work-life balance, holistic planning ensures that financial decisions align with personal fulfillment.

It’s important to realize that holistic financial planning transcends the narrow confines of retirement savings and investment portfolios. For younger generations, traditional financial goals like homeownership and retirement may take a backseat to pursuits such as travel, or entrepreneurship. In addition to the concepts listed above, it delves into various facets of life, including career aspirations, health and wellness, further education, and even family dynamics. By considering these interconnected aspects of life, holistic planners work to craft customized strategies that resonate with the individual’s unique circumstances.

Being Adaptable

Young adults often face uncertainties along their path in such areas as their careers, relationships, and living situations. Gone are the days of working for one company for an entire career. Careers and personal relationships can easily cause many people to relocate all over the country – or the world – over time.
Holistic financial planning acknowledges this fluidity and calls for regularly revisiting and adjusting strategies. This adaptability ensures financial plans remain relevant as life changes.

Tailored Investment Strategies

Investing and retirement planning are still key components of holistic planning. While retirement may seem distant for younger clients, it still must be remembered at every step along the way. Holistic planning incorporates these clients’ unique timelines and risk tolerances to craft tailored investment and retirement strategies. Some approaches may be intended for shorter-term projects, while others may be intended for long-term retirement goals. These approaches seek to maximize near-term liquidity and safety concepts as well as the power of compounding returns over longer time horizons.

Additionally, investment strategies can recognize the importance of aligning financial goals with personal values and beliefs. For individuals who prioritize – and want to incorporate into portfolios – social impact and sustainability, this aspect is particularly significant. Holistic planners help clients integrate their values into their financial plans, whether through socially responsible (ESG) investing, charitable giving, or supporting causes they believe in.

Building Lasting Relationships

Holistic financial planning fosters deep connections over time between advisors and clients. Actively listening to what’s really important to each individual enables an advisor to provide personalized guidance and support. In turn that makes the advisor a trusted partner as clients go through the twists and turns of their financial journey. As circumstances change, so too must the planning.
Moreover, holistic planning places a strong emphasis on education and financial literacy. Younger individuals, nowadays often lacking formal education in personal finance, can benefit from guidance that empowers them to make informed decisions about saving, budgeting, investing, and managing debt. By helping clients develop financial literacy over time, holistic planners arm their clients with the tools to navigate the complexities of modern finance with confidence.

Is Holistic Financial Planning Right for Me?

Holistic financial planning empowers young adults to make sense of their ever-changing lives while aligning their financial decisions with their values and aspirations. This approach enables them to live purposefully while working toward personal financial independence. In today’s age which is defined by rapid change and lifestyles in flux, holistic planning may be a great fit for the needs of the generations that are redefining success on their own terms.

At HighPoint Advisors, LLC, our advisors have the years of experience and expertise to address a wide range of lifestyles and outcomes for clients. Our advisors look forward to new situations that we can help new clients with, so give us a call.

Contact us today and tell us your story!

All investing involves risk including loss of principal. No strategy assures success or protects against loss.

Environmental Social Governance (ESG) has certain risks based on the fact that the criteria exclude securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller

Scroll to Top