5 Key Steps to Financial Wellness: Step 5

The last in our part five series on financial wellness is the one we are asked the most about, Investments!

As we frequently explain to employees, investments are the least important part of your overall financial wellness.  By this we simply mean if you aren’t saving enough, then where you are invested isn’t terribly important.  If you don’t have an emergency fund, when that emergency hits you won’t have the money available to prevent a potentially crippling financial event.

If you haven’t sought out guidance relating to your options and benefits package, it is possible you are missing out on key matching dollars or employer programs that can make your life much easier.  But if we have done all of the prior four steps well, then investments really matter.

Where should you be invested based on your risk profile and time horizon.  Of more importance, what level of risk do you need to take on to achieve your goals?  Lastly, what combination of investments in your 401k, 403b, 457b, HSA, and taxable accounts is needed to have a well diversified portfolio?  This is the last critical piece to your overall financial wellness and one that you will want to analyze once you have completed steps one through four.