Every year, International Redefining Wealth Day (March 15) reminds us to look beyond the conventional view of wealth as simply a measure of financial status. Traditionally, wealth has often been defined by the amount of money or assets one possesses. However, this day encourages us to rethink wealth as a more holistic concept, encompassing not just financial resources, but also health, relationships, personal fulfillment and a sense of purpose.

When we expand our definition of wealth, it becomes clear that sound financial principles such as asset allocation, diversification and investing in quality assets­­ are integral to achieving both financial success and a broader sense of wealth. These principles help you build a secure financial foundation, so you can focus on living a life that aligns with your values and aspirations.

Redefining Wealth: More Than Just Money

International Redefining Wealth Day invites individuals to reflect on what truly matters. Wealth isn’t just about accumulating material possessions, it’s about having the resources to live a fulfilling, balanced life. Real wealth lies in the ability to:

• Live with purpose and align your financial goals with your values.
• Cultivate meaningful relationships that support personal growth.
• Maintain good health and well-being.
• Create financial security that allows you to enjoy your life and plan for the future..

Achieving this kind of wealth requires a comprehensive financial strategy –­­ one that is centered around solid principles (including asset allocation, diversification, and quality investments), designed to safeguard your future and support your personal goals.

Asset allocation refers to the strategy of dividing your investments across various asset classes, such as stocks, bonds, real estate, and cash. The goal is to create a balanced portfolio that aligns with your risk tolerance, time horizon, and financial goals.

On International Redefining Wealth Day, take time to update your financial advisor on changes (i.e. planned retirement date, sensitivity to the market, etc.) that might impact your asset allocation.

Diversification goes hand in hand with asset allocation. While asset allocation helps you spread your investments across different asset classes, diversification involves spreading your investments within those asset classes. Just as no single element of life brings fulfillment, no single investment type is the key to lasting financial security.

Finally, when building wealth, it’s important to invest in quality assets that have the potential for long-term growth. Rather than chasing short-term gains or speculative investments, focusing on high-quality investments –­­ such as well-established companies, blue-chip stocks, and strong-performing mutual funds –­­ can help you build a solid foundation for the future.

International Redefining Wealth Day reminds us that true wealth isn’t just about financial success –­­ it’s about creating a life that reflects our values and aspirations.

If you’re looking to redefine your wealth and create a financial plan that supports your long-term happiness and security, contact your American Trust Wealth financial advisor. Our team of experienced professionals can provide personalized guidance to help you implement these principles and build a comprehensive strategy for lasting wealth.