Redefining Financial Success Beyond Net Worth

For many Americans, a traditional measure of financial success has been straightforward: Build wealth and grow net worth.

Saving, investing and planning for retirement are as important as ever. Increasingly, however, people are also evaluating financial success through a broader lens.

Today, many people measure financial progress not only by what they've accumulated, but also by the opportunities, confidence and stability their finances provide.

That shift is reflected in research by Thrivent, where I am the president and CEO: 69% of Americans say long-term financial success is about financial security and peace of mind, while only 3% say it's primarily net worth.

This broader perspective reflects the realities many people face today. While Americans continue to value saving and investing, they also want confidence that their finances can help them navigate uncertainty, support the people and causes they care about and create opportunities for the future.

Money is a tool to build a better life

Nearly two-thirds of Americans say money is a tool for creating the life they want, rather than something to accumulate for its own sake. When money becomes a means rather than an end, financial success takes on a broader meaning. The focus shifts to what it makes possible:

• Preparing for the unexpected
• Caring for loved ones
• Pursuing meaningful experiences
• Supporting important causes
• Building a legacy

A growing account balance can strengthen someone's financial position, but confidence also comes from understanding where you stand, where you want to go and how your financial decisions support that journey.

What this shift means for financial services

As people's definition of financial success evolves, the role of the financial services industry must evolve alongside it.

People will always need sound financial fundamentals and expertise. But increasingly, they're also seeking guidance that helps them align their finances with what matters most to them.

That requires the industry to see the person behind the portfolio. Financial decisions are never just about dollars and cents. They're connected to people's goals, responsibilities, values and aspirations.

Our role is not to define success for someone else, but to help people make informed decisions in pursuit of the outcomes that matter most to them.

That's why trusted guidance is essential. Our industry can help people navigate complex decisions while keeping their goals, priorities and values at the center of the conversation.

When those elements come together, financial planning becomes a way to help people move forward with greater clarity and confidence.

The bottom line

Financial success can't be captured by a single number. It includes what people accumulate, but also the security, choices and opportunities their money creates.

Building wealth remains important. But ultimately, financial success is about aligning money with what matters most and using it to create the life you want to live.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.