Wealth with purpose

As we accumulate wealth, many of us want to give back. Here, we sit down with Apt Director Andrew Dunbar to talk about how you can use your wealth with purpose and, in doing so, shape a legacy for generations to come.

"Wealth with Purpose," according to Andrew, is about answering one of the most crucial questions: what do you want your legacy to be?

"It's about the impact we create while we're here and how that meaning continues after we're gone,” he says.

“Most people go through life making short-term decisions they hope will lead to happiness. Buy a car, take a holiday, upgrade their home, get a new job, etc. But very few think purposefully about their goals in life for themselves, their family and their legacy. Making decisions through that lens gives confidence and peace of mind that you are using your wealth with purpose to live your best life.

“It creates a sense of purpose and a true legacy. What you do with your wealth today can instil your values in future generations and influence their contribution. So it really can be about a long-lasting legacy.”

How to integrate philanthropy into financial planning

When adopting a wealth-with-purpose approach, Andrew suggests starting with your own values.

"Start by considering what is really important to you. More money doesn’t equate to more happiness. However, aligning your financial decisions with your values can lead to greater satisfaction. Using wealth for the greater good is not just socially beneficial, either; it's also tied to positive effects on our health and wellness.”

He adds, "You don’t have to contribute large sums; every bit counts, from volunteering to making one-off donations or even planning bequests."

Andrew’s approach to giving back starts with causes close to his heart, and he recommends that others do the same.

“One cause that is close to my heart is support for lung transplant survivors. My family was overwhelmed by the support provided by not-for-profit Lungitude, and today, I’m on the board and heavily involved with fundraising.

“Identifying causes that resonate personally is a great way to keep momentum and involve other family members. If you’re passionate about what you are supporting, others will pick up on it, and that can influence them to become involved.”

Talk to your financial adviser

Once you’ve identified causes you’d like to support as part of your legacy, Andrew highlights that including your Apt adviser in the discussion is important.

“Your adviser can help you understand the best ways to get involved depending on your life stage and circumstances. The way we contribute can change throughout our lives, too.

“In our younger years, it may be more about volunteering time or raising money by participating in events as we save for our own big life goals ahead. In our mid-career years, we may be more time-poor but have more financial resources, so making donations may make more sense.”

On retirement, Andrew highlights a return to volunteering is on the cards for many as work takes a back seat.

“Volunteering can make a lot of sense for retirees on several levels. It can be a great way to give back and make new social connections at the same time. Financial contributions may also continue during retirement. And, of course, many Australians choose to leave a bequest in their will as part of their legacy.”

Wealth with purpose can be part of your investment strategy

Ethical investing is another way to use your wealth for good. But Andrew highlights that it’s essential to consider returns and ensure your investments align with sound investing principles.

“Research has shown that socially responsible investments can perform competitively, but it’s important to evaluate any investments against your investment principles, too. Another thing to note is that the term ‘ethical’ is highly subjective. For some people, ethics may be about environmental sustainability. For others, it may be about ethical business practices, such as not testing on animals or ensuring safe working conditions in the supply chain. So, it’s important to look beyond the word ‘ethical’ and explore whether the investment is right for you.”

Andrew says speaking to your adviser is a great first step if you are considering ethical investing. They can guide you on what it will mean for your finances and how best to implement it.

An enriched life today, a legacy for tomorrow

“Wealth with purpose isn't simply about the amount you donate, the time you give or where you invest; it's about aligning your financial choices with your personal values, leaving a lasting legacy, and enriching your own life today.”

He points to research from the Harvard School of Public Health that highlights that those who give back tend to live longer, feel less stress and have a better overall sense of well-being.1

“So, as mentioned earlier, more money probably won’t lead to more happiness, but using it in the right way certainly can,” Andrew concludes.

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.