Understand the importance of a holistic view in investments – 04/13/2024 – From Grão to Grão

Have you ever wondered why, even following market trends and making investments considered safe, financial results often don’t meet your expectations? This uncertainty can be frustrating, especially when you feel like you’ve done everything “right.” The problem may lie in the fragmented approach that many investors take, not considering how different factors interact and affect overall financial health. A holistic view of investments can be the key to understanding and overcoming these inconsistencies.

A holistic view in investing is an approach that integrates all aspects of a person’s finances into a unified strategy. This means not just looking at each investment in isolation, but considering how each decision relates to other financial, personal and even emotional aspects of the investor’s life.

For example, consider the case of Izabel, a 45-year-old lawyer who began planning her retirement and the legacy she wants to leave for her children. Izabel was initially frustrated because her investments in bonds referenced to the IPCA did not exceed the CDI in the short term.

However, after understanding the holistic approach, she revisited her investment plan in light of her long-term goals. Izabel understood that a portfolio with securities referenced to the IPCA protects her capital against inflation and is more suitable for her retirement. This understanding helped her abandon the short-term focus and focus on what should provide better results in the long term.

Also, she realized the importance of considering products such as life insurance and private pensions in her portfolio. Just as everyone already adopts health insurance for themselves and their family as a form of emergency protection, life insurance not only provides financial security for your family in the event of unexpected events, but can also be structured to facilitate the management of your inheritance, minimizing complications and family disputes after your departure.

Furthermore, she came to understand the real role of private pensions. It is an essential instrument not only in your wealth formation, but also as a succession planning tool, as it allows the appointment of specific beneficiaries, ensuring that accumulated resources are transferred efficiently, that is, with less cost and in accordance with your needs. desires.

This renewed understanding allowed Izabel to adjust her investment strategy to better reflect her long-term needs and expectations for her family. She felt calmer and more confident, knowing that each component of her portfolio was aligned not only with her financial goals, but also with her personal and family goals.

Implementing a holistic view is not without challenges. It requires a clear understanding of the investor’s financial and personal goals and effective collaboration between the investor and his or her financial advisor. But the benefits can be significant. Investors who adopt this approach generally encounter fewer unpleasant surprises as they are better prepared to respond to market volatility and changing economic conditions. They become able to adjust their portfolios based on changes in their personal lives and goals, rather than just reacting to market movements.

To begin adopting this approach, it’s crucial to start with a comprehensive assessment of your financial and personal goals. To do this, you need to meet with your investment advisor to create a financial plan that brings together all your objectives, identifying how financial solutions can help you achieve them or protect them in case of unexpected events. It is also essential to carry out annual reviews of the financial plan, adapting to new personal circumstances. This is the path to adopting the principles of holistic wealth management.

Imagine what it would be like if every financial decision you made was aligned not only with your return expectations, but also with your deepest values ​​and life goals. This is possible with a holistic view. Why not explore this approach and transform the way you invest? Adopting this vision can be a transformative step in your financial journey, providing not only growth but also lasting peace of mind.

Michael Viriato is an investment advisor and founding partner of Investor’s House.

Speak directly to me via email.

Follow and like De Grão em Grão on social media. Follow investment lessons on Instagram.

LINK PRESENT: Did you like this text? Subscribers can access five free accesses from any link per day. Just click the blue F below.