3 ways volunteering is good for you

December 03, 2021

Allworth Co-CEO Scott Hanson shares a few quick reminders about the emotional and mental benefits of volunteering.

There are approximately 420,000 children in America’s foster care system.

If you’re a consistent reader of our newsletter, or you receive our email announcements, you’ve probably heard about Allworth Kids.

Launched in late 2020, Allworth Kids has partnered with the Ticket to Dream Foundation to provide support to children in foster care.

And, happily, the endeavor has made a difference.

For instance, in just the last year, Allworth Kids has provided more than 130,000 foster children with laptops, first night kits, school supplies, and other essential items that make life in a new home or school more welcoming.

Each quarter of the year, Allworth Kids launches a new initiative. One quarter was “Back to School” focused, while another had the goal of providing 4,000 children with essential first-night supplies such as new undergarments, clothing, special toys, and hygiene products.

(With those in mind, please click here to learn about 2021’s 4th quarter Allworth Kids’ “Holiday Magic” initiative.)

Almost 30 years ago, when Pat McClain and I founded Allworth Financial, we were determined to build a company that placed the needs of our clients and team members first, and which made volunteering a foundation of our core values.

That’s because, as I’ve written numerous times, giving back is an almost perfect venture that’s good for the recipient and the volunteer, and which creates a powerful unity of purpose.

It’s the holiday season. For some, the holidays are undeniably the best time of the year. For others, they are a time of great stress.

We have found that one of the best ways to put a cap on that stress, while opening ourselves up to the endorphins which can engender a sometimes life-changing sense of well-being, is to give back.

With that in mind, here are 3 ways that volunteering is good for you.

1. It can increase your happiness

As Frankenstein’s monster once famously said: “Isolation, bad. Volunteering, good.”

As if life weren’t challenging enough, COVID came along and put even more distance between us.

Time to (safely) put an end to that (within reason).

From 1996 until 2016, 70,000 Brits agreed to participate in a study on volunteering and mental health.

Want to take a guess at what they found?

The more a person volunteered, the happier they became.²

Even those folks who volunteered as little as once or twice each year reported greater life satisfaction levels than those people who never volunteered.

2. You’ll make more friends and connections and expand your horizons

I know people who’ve developed an entirely new network of friends through volunteering. And the impact and breadth of this network has done more than help others; it’s resulted in an increase in social activity, new full or part-time jobs, more exercise, more travel, and a healthier outlook on life.

If you’re retired, or if you’re set to retire in the next five years, the transition to your post-work life is not always an easy one.

But I can almost guarantee that if you find a cause and start to devote some time to it, you’ll not only more easily make the transition into retirement, but you’ll aid others in the process.

3. Volunteering helps stave off dementia and Alzheimer’s

Studies have found that one of the best ways to delay, or even entirely stave off, diseases of the brain is by engaging in new, stimulating activities. And this appears to be especially true when it comes to volunteering.³

According to research completed at Johns Hopkins University, older adults who tutored children, or took part in some other form of volunteer service, were able to delay or even reverse declining brain function.³

Using MRIs, researchers discovered that folks over 50 years of age who volunteered (for this study, they utilized volunteers who tutored) showed a significant increase in the function of the areas of their brains that controlled planning, thought, and organization. ³

Volunteering is the one thing that almost any of us can do that could simultaneously help our minds stay sharp, expand our social circles, make us feel better, and improve both the present and the future of a person in need.

Here’s to all of us working to make 2022 the year of giving back.

^{1 https://theconversation.com/4-ways-that-volunteering-can-be-good-for-you-163336}

^{2 https://greatergood.berkeley.edu/article/item/how_volunteering_can_help_your_mental_health}

^{3 https://www.futurity.org/brain-benefit-for-seniors-who-volunteer/}

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¹Barron’s 2024 Top 100 RIA Firms. Barron's© magazine is a trademark of Dow Jones L.P. The ranking of independent advisory companies is based on assets managed by the firms, growth, technology spending, succession planning, and other metrics.

² Retention Rate Source: Allworth Internal Data, FY 2022

³ The NBRI Circle of Excellence Award is bestowed upon NBRI clients meeting one or both of the following criteria: Total Company score at or above the 75th percentile of the NBRI ClearPath Benchmarking Database and/or improvement of five (5) or more benchmarking percentiles in Total Company score over the previous survey.

⁴ As of 7/1/2024, Allworth Financial, an SEC registered investment adviser and AW Securities, a registered broker/dealer have approximately $22.5 billion in total assets under management and administration.

⁵ InvestmentNews 2020 and 2021 Best Places to Work for Financial Advisers. The ranking reflects survey responses and scores completed by both employers and employees. Employers report their organization’s workplace policies, practices, and demographics. Employees complete a survey designed to measure the employee experience.

⁶ 2021 Value of an Advisor Study / Russel Investments

⁷ Ranked 9th Top Wealth Managers By Growth in Assets in the U.S. from RIA Channel, 2022. RIA Database and RIA Channel are registered trademarks owned by Labworks, LLC.

⁸USA Today Best Financial Advisory Firms 2024. The ranking is based on the growth of the companies’ assets under management (AUM) over the short and long term and the number of recommendations they received from clients and peers.

⁹NBRI Best in Class Ethics 2023. The Best in Class level is bestowed upon clients performing at or above 90 percentile of the NBRI ClearPath Benchmarking Database.

^✢ Scott Hanson, Investment Advisor 2005, 25 most influential people in the financial services industry. The ranking reflects 25 people who Investment Advisor magazine believes have had or will have the greatest influence on the financial services industry.

^✼Pat McClain, InvestmentNews 2014, Invest in Others Community Service Award, presented to an advisor who has made an outstanding impact on a community through managerial contributions to a non-profit organization.

^†Financial Times, FT 300 Top Registered Investment Advisers, June 2019. The ranking reflects six areas of consideration including the company's years in existence, industry certifications of key employees, AUM, asset growth, SEC compliance record and online accessibility and calculates a numeric score for each company.

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