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Does your current financial structure accurately reflect the causes you care about and the legacy you want to build?
It seems the world is more partisan than in previous times. As the divide grows, so does anxiety. Many of us want to act in alignment with our values to help further the causes we are passionate about, but what you may not know is that you can do this—to a greater or lesser extent—through your financial strategy.
The Foundation of Your Financial Plan
Your financial goals likely include retirement, healthcare, caring for others, and perhaps leaving a legacy through charitable giving. While you may have given significant thought to your values, you may not have considered how your money can act in alignment with them.
You may have heard mixed news about investing in alignment with your values—often referred to as ESG (Environmental, Social, and Governance) investing. At its core, values-based planning is about ensuring your capital supports the world you want to see while still pursuing the returns you need for your future.
Balancing Relationships and Resources
The relationships that mean the most to you often make financial demands on you. Perhaps you wonder how you can help your children get started in life without compromising your own security. This is where a structured process becomes vital:
- Rediscovery Meeting: Spend time discussing what is truly most important to you.
- Strategic Dialogue: Spend a meeting (or several) exploring your unique values.
- Co-Creation: Build a financial plan that prioritizes what is impactful for your situation.
- Implementation: Put the plan into action.
- Ongoing Monitoring: Review and improve the plan as time and circumstances change.
Case Study: Jane and John’s Dilemma
Jane and John have two daughters starting their lives—one a recent graduate and the other a college junior. Jane felt torn; while her children were independent, they lived in distant states, and she missed them. John felt proud they had funded out-of-state tuition but stressed because the high cost had delayed their retirement plans.
Now, their older daughter wants to purchase a home. With home prices at historic highs, she is struggling to get started. Jane and John want to help with a down payment, but they face a common question: Can they afford to help one without being unfair to the other?
Additionally, Jane and John find themselves more politically active now that they are nearly empty-nesters. They want to invest in a way that aligns with their beliefs and continue supporting their church and favorite non-profits.
The Power of Values-Based Planning
During their Rediscovery Meeting, Jane and John discussed what money truly meant to them. Interestingly, their answers differed, leading to important conversations at home. By identifying their priorities, the “where” and “how” of their spending became clear.
Our team ran the numbers. It became clear that a large down payment for both daughters would significantly risk their retirement timeline—a compromise neither was ready to make. Instead of just saying “no,” we pivoted to a relationship-centered solution: our team met with the eldest daughter to discuss saving, investing, and good financial planning for her specific situation.
This allowed Jane and John to:
- Retire on time.
- Continue their charitable contributions.
- Reinvest their retirement accounts into values-based options that aligned with their political and ethical beliefs.
FAQ: Values and Your Wealth
What is the difference between goals-based and values-based planning? Goals-based planning focuses on the “what” (e.g., retiring at 65). Values-based planning focuses on the “why” (e.g., having the freedom to spend time with family or support a cause). Integrating both ensures your money serves your life, not the other way around.
Does values-based investing mean I have to accept lower returns? Not necessarily. Many modern values-based frameworks, such as ESG or faith-based investing, seek to identify companies with strong governance and ethical resilience, which can be a marker of long-term stability.
How do I start the conversation with my family about money? The first step is transparency. Sharing your values and the “why” behind your financial decisions can help your children understand the boundaries of your support while empowering them to build their own financial independence.
Final Thoughts
Financial planning is a process that includes investments, budgeting, charitable giving, and education funding. For Jane and John, it allowed them to align their money with the things that meant the most to them.
If you’re ready to start your own rediscovery process, reach out to the team at A&I Wealth Management. We offer up to three meetings free of charge.
Disclaimer: The information provided in this blog post is for general informational purposes only and should not be construed as financial or legal advice. Please consult with a qualified professional for advice regarding your specific situation.
DISCLOSURE: Client stories included in this blog reflect hypothetical client situations that represent those commonly encountered by AIWM representatives.
