This article article was published in the "Westchester Jewish Chronicle" in February 2004.

By Frank Sisco, CPA, PFS

What is holistic financial planning?

Holistic financial planning encompasses how you share your life with your family members and your friends, why certain songs are your favorites, how you juggle your time for hobbies, business and home, your passions, and your relationship with God and other people, as well as all the traditional considerations about personal finance.   Yes, your relationship with God and with people can have a greater impact on the success of your financial planning than the latest return on the S&P 500 index or the newest tax law.   Holistic financial planning, a new and burgeoning trend in personal finance, has at its core the importance of putting the pieces of an individual together in such a way in order to make the whole person, and his or her finances and even life, much greater than the parts.   Holistic financial planning strives to create a beautiful puzzle out of a mix of components.   The essential ingredients in the process are sharing openly and honestly, with your financial advisor, family members and individuals with whom you are closely involved.

Goal-setting and sharing it.

What has been missing in the traditional planning process is a sharing of goals in an honest way.   George   Harrison said in his song "Any Road" on the "Brainwashed," album, released posthumously, "If you don't know where you're going, any road will get you there."   Your heart and soul know where you want to go, but often your mind does not, and that can be the problem.   Too often, I've asked clients about their goals and objectives and it seems that they answered me with surface responses or what they think I wanted to hear. Answers such as a secure retirement; a bigger house; top colleges for their children; coverage against calamities; more money for travel; their own business.   Usually their responses were bland, almost apologetic.    Very infrequently do clients say what they really might be thinking, such as a breather from the rat race of keeping up with the Joneses; feeling young and vibrant again; finishing the novel started years ago; having time for romance; feeling free of worry and confident that God will make things work out; the quick recovery of a family member who has cancer; freedom from an obsessive-compulsive disorder and so on.

Here's a list of goals that I rarely hear, but should hear, from clients during our introductory sessions.

1.   A loving relationship with family, friends, community, self and God.

2.   Continued peace and security.

3.   Improved likelihood of physical and emotional well being.

4.   Greater freedoms of all kinds.

5.   Enhanced self-expression.

Most people are not accustomed to sharing intimate aspirations and beliefs, or they think somehow that the sharing does not pertain to the development of strategies for improving their finances. Many people are not in touch with their innermost drives and desires, or have squelched them for other reasons.   Much of my own life has been that way and perhaps yours too.   Furthermore, goals can be moving targets in today's complex and quickly changing world.

Getting the help of a financial advisor.

The best financial advisor is usually one who is holistic in attitude, experience and in approach.   She or he sees how money can be created and understands your own circumstances and goals and how to get you to openly share about them. Ideally, one financial advisor should be the quarterback of your financial matters.

Tags and designations can help you to narrow your search, but can be quite misleading, frequently change or fall in and out of favor. A person having several designations may be better equipped to offer a more holistic, balanced approach.   More importantly, it depends on an advisor's attitude, sensitivity and dedication to helping clients in a way that is objective, fair and maximizes value for the client.   Check out how the advisor has handled similar situations and talk to references.   The advisor should be creative and an excellent communicator, and a team player.    Often, a warm caring approach can count as much as, if not more than, technical skills.   The old saying is apt:   "People don't really care how much you know, but they know how much you care."

The process of holistic financial planning.

There are seven main phases:

1.   The initial contact is usually through a referral from the prospect to the holistic advisor.

2.   Setting the context.

3.   Building rapport and developing understanding.

4.    Identifying real needs and goals.

5.    Creation of financial strategies, holistically and sensitively.

6.    Implementation of key strategies.

7.    Follow-up, empowerment, referral.

For each phase, the holistic advisor gathers information about the client's key sensitivity attributes, and what influences these attributes.   Financial strategies are tailored around these attributes that include being:

· Free and not burdened or controlled.

· In-the-know and not left out.

· Understood.

· Respected as an individual and not exploited.

· Efficient.

· Responsible and not too risky.

· Young at heart, fresh, innovative.

· Successful financially and successful with relationships.

· Loving, harmonious, spiritual, and not controversial.

The financial planning techniques are personalized for clients.   Fees are usually based on performance and value created, rather than merely based on time spent.   Story telling is an important tool in communicating ideas and the views of the client and advisor.

The spiritual component.

For individuals who get comfortable with holistic financial planning, the next deeper level of such planning is to include the spiritual component pervasively in the planning process.  

Studies show that over 90% of us believe in God or whatever name is given to the higher force that has a hand in our lives.   From a holistic financial planning viewpoint, the differences among religions are not important.   What is important is that a person believes that a higher force can influence the person's life directly or through other people.   And by believing that unconditionally, it then opens up the possibility for great strides in the holistic financial planning process.   The person becomes able to see their own life as the beautiful blend of experiences which all had purpose and meaning, and that the current life is a launch pad for an even more remarkable life to come.   This makes it possible to fit together the component strategies into a cohesive whole that is a reflection of a person's true inner being.   I also think the belief in God, the higher force, and in other people then opens one's heart as well as mind to a more open sharing of one's life, and this leads to results more closely tied to what a person really wants.  

Here are seven spiritual principles, for your consideration, that if followed I believe will help you to attain your goals of life and finances.  

1.   Ask and it will be given to you.

2.   Be here now, with God, calm and simple.

3.   Forgive, give, share, and be tolerant and humble.

4.   Add real value, utilize resources and live with integrity.

5.   Follow your heart and your soul.

6.   Serve and be served by people instead of things.

7.   Believe in God and yourself, mind the signs, and open yourself to God and miracles.

Holistic financial planning is spreading quickly and could make a profound difference in your life and the differences you make in the lives of other people.   If you are interested in more information, please contact me through my website at www.lifeandmoney.com or through the editor of this newspaper.  

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About the author

Frank Sisco is a CPA and Personal Financial Specialist, and author of several articles about personal finance and issues of life and money.   His office is in Harrison, NY and makes his home with his wife and daughter in New Rochelle, NY. Office telephone is 914.381.3737. Email is ideasmoney@aol.com. Website is www.LifeAndMoney.com.