Since the late 90s, wealth management planning has evolved. It’s now a process that includes psychological and emotional preparation for moving through life’s stages, with a focus on quality over quantity. Most financial planners describe it as a comprehensive approach, incorporating disciplines like investment management, tax planning, business continuation, and estate preservation.
The “new normal” economy that emerged after the 2008 recession brought a holistic view to financial planning, focusing as much on mental and emotional aspects as on financial ones. Traditionally, financial planning emphasized the quantitative side — crunching numbers. Now, it broadens the scope to refine individuals’ vision and life ambitions with a holistic approach.
Increasing life expectancies, economic uncertainty, extreme market volatility, and concerns over geopolitical crises have contributed to new attitudes about money and happiness. Even financially prepared individuals may feel unprepared for a rapidly changing world. A growing trend in financial advisory circles is to add a “wealth psychologist” to the advisory team.
Values-based and goal-centric wealth planning paves the way to establishing more compelling and reasonable goals. When goals align with personal values, they strengthen both emotional and financial security.
Studies show that even those who may not feel financially secure experience less stress if they feel emotionally secure about their future.
This approach doesn’t ignore financial elements but instead contextualizes them for more meaningful planning. Priorities become clearer, and decision-making becomes more intentional.
The process requires setting financial objectives, quantifying them, setting benchmarks, and allocating assets to match risk tolerance and investment preferences. Importantly, it includes continuous monitoring and updating to maintain alignment between your priorities and financial state.
Whether you work with a financial advisor or on your own, the goal is to develop a plan that closes both the financial and emotional gaps in life. Addressing critical financial and life-critical emotional concerns is essential.
Before diving into the quantitative side of your plan, it’s vital to explore the qualitative side — to discover your values, attitudes, and beliefs, understand how you wish to be remembered, and translate that into actionable steps.
Looking for a wealth management partner? Alpine Bank offers a wealth management division to assist clients with asset management, investments, legacy planning, and more.
Note: Products of our Wealth Management service are not FDIC insured, may lose value, and are not bank guaranteed.
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