If you don’t feel inspired by your financial plan, chances are it’s not in alignment with your values. A good financial plan should be taking you in the direction of your dreams. It’s about living a life that feels good for you. Money is much more than maths. It is lifestyle and freedom. Before we even start to do the sums we like to get to know who our clients are. This is how we create values based financial plans.
Values-based financial life planning is a process, not a one-time event. It is adaptable and can change over time as your personal values and financial goals evolve as you go through different life stages. There are many ways to set financial goals around these values and generally they fall into a few different categories.
Dreams
Many of our clients have long held dreams to travel around the world once they retire. With goals like these we work on a strategy to set aside particular assets to fund that dream.
Lifestyle
This is about ensuring there is cash flow to allow clients to enjoy a day-to-day way of living such as dining out, purchasing leisure items or driving a particular car.
Freedom
A good financial plan should provide you with choice. Often we find our clients choose to remain working in some capacity, even when they don’t have to. In our observation it is about having that option rather than being forced to work for survival that makes people much happier.
Environmental, Social and Governance Investing
Some of our clients come to us with a keen emphasis in ethical investing. They often have a strong environmental, social and governance (ESG) focus and are looking to build a portfolio of assets that are considered to fit these parameters. We work with them to tailor a portfolio to suit those values. This can include things such as no tobacco, gambling or fossils fuels and it can be done at various levels. When taking this approach, it is important to be aware that avoiding certain asset classes can impact returns. Investing in these companies can also provide clients with the opportunity to influence change through voting rights at AGMs etcetera, so it is always a balancing act.
Financial Goals
When clients have specific financial goals we can design portfolios to do certain things. Short term goals such as a holiday or purchasing a new car are usually reached through cash-based investments that are liquid and easy to access. Longer term goals can be reached by investing in higher growth assets. This can include accumulation strategies that don’t require income. Whereas clients in the pension phase will be looking for a strategy that provides them with an income from higher levels of interest, rent or dividends. This type of portfolio tends to provide less capital growth but less volatility.
When you meet with us, we want you to leave with peace of mind, a sense of clarity and excitement about the work ahead to help you reach your dreams. Everyone has unique circumstances and different things are important to different people. We work holistically with our clients to help them reach their goals. Get in touch.
General Advice Warning: The information provided in this article is general in nature and does not consider your particular investment objectives, financial situation, or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Dobbrick Financial Services (Gympie) Pty Ltd ABN 48 931 205 109 and Dobbrick Financial Services (Ipswich) ABN 86 100 184 521 & DFS Oakland ABN 64 340 527 395 and their advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.
