One of the newer phrases to find its way into the vocabulary of today’s more progressive financial planners is “holistic financial planning”. So what does it mean and why now? Also is this newer type of all inclusive financial planning something that you can benefit by?

In broader terms, holistic financial planning identifies and takes into consideration the entirety of a clients financial situation both present and on into the future. When the client receives completely inclusive or complete holistic advice, they are far better able to make decisions that insure that their total objectives are more realistically obtained.

In the past far too many financial planners and their clients took a far more narrowly focused approach to Financial Planning. Each consideration was held out and dealt with separately. One by one increments or facets of a person’s finances would be analyzed and dealt with as a singular unit. In the end it was felt that all the pieces would fall together correctly and they often did.

How Holistic Financial Planning Works

With holistic financial planning however, all aspects of client’s finances, goals, lifestyle and ideals are brought together at once and analyzed as a whole. A much “bigger picture” is viewed, if you will and also other peripheral aspects and factors such as client’s principles are entered into the equation as well. Something that was rarely done in the past.

Holistic financial planning begins with a preliminary financial advisory process that includes an initial fact finding stage. This initial stage of the process is geared towards assessing a clients likes and dislikes, general opinions, goals both short and long term. Also during this initial fact finding stage, information such as a clients risk tolerance is also gathered and filed for analysis. Then after the necessary preliminary information has been gathered, it’s on to the next phase. Read the rest of this entry »

Financial planning encompasses much more than making out a household budget or placing a portion of your salary in a 401(k) account. In order to be prosperous and have the abundance you desire in life, it is essential that you understand how good financial planning can affect your life, not only for the years ahead but in the present as well.

Many people have a clouded understanding of financial planning; in short, it is a process of understanding what your goals are for your money, knowing when you will need to use it, and exactly what it will be used for. Determining a plan of action that includes very specific steps is necessary to reach those goals in your life.

Is it always necessary to hire a professional to help with financial planning? While it certainly isn’t mandatory, an advisor can often discern things about you and your life that you may not be able to see. All too often, individuals assume that planning their finances in the here and now is meant to enhance their life and abundance in future years. While this is true, the abundance in life as you know it now can also be improved.

In order to enhance your life and the lives of your family members, financial planning may include:

Determining what type of mortgage is best for you
Learning how much insurance you really need – and what types of coverage
Knowing how much you should be saving
What you may need to be doing differently
Learning whether it is in your best interest to pay off your mortgage
Which retirement accounts are right for your individual situation (ROTH, 401(k), IRA, etc.)

Should you decide to consult with a financial planner, he/she will gather information about you that includes both personal and financial details, so that a plan can be created that allows you to see how you can accomplish your financial goals, and when those goals may become reality.

In planning your finances so that you can enjoy life and experience more abundance in the lives of you and your family members, it is essential that you understand that being prosperous involves not only how you handle your money, but learning how thinking, being and doing have a direct impact on your prosperity.

Here are 5 basic steps that if applied will affect and accelerate your abundance:

1. Explore
2. Envision
3. Embark
4. Execute
5. Expand Read the rest of this entry »

Different people have different views on how to choose the best way to invest your money. Most people prefer going to a financial consultant in order to get the best they can. However, financial consultants cost money and what’s more, they don’t offer you any guarantee that your money are at a safe place. You can do absolutely nothing if you lose your money due to the wrong piece of advice by a financial planner. However, there are even braver people that use the financial planning tools offered by some sites.

Are These Financial Planning Tools Really Offered?

The answer to this question is yes, they are. There are quite a lot of websites now that offer this service. They all provide us with more personalized and detailed information and may even be better than many financial consultants. That’s why these websites have growing popularity. There are both similarities and differences between these sites. What’s similar between them is that they are all extremely simple to use and you don’t need to spend hours filling questionnaires in order to get some results. Another similarity between them is that they all tend to make little mistakes by advising you to insure things you don’t need to or something similar. The fact that they all work and are extremely helpful in many ways is their greatest similarity.

Differences between the Financial Planning Tools These Websites Offer

These sites have quite a few differences too, mostly in the way they work. For example, some of them would ask you to fill in a questionnaire for just a few minutes. Everything about your finances is then built on your answers and that’s why you’ve got to be very detailed. Other sites provide you with a list of to-do notes. Completing all of them would definitely increase your income and would make it easier for you to plan your retirement. Still others provide you with additional pieces of advice on what to buy for home that would ease off your budget or how to proceed with your child’s education. Read the rest of this entry »