Derek Hagen, CFA, CFP®, FBS®, CFT™

“The tippy top of our value hierarchy becomes the lens through which we interpret all other values.”

-Mark Manson

A concentrated portfolio might make you rich… or ruin you. A concentrated value system works the same way.

When a Core Value Becomes the Only Value: The Problem of Concentrated Risk

Every advisor has met clients who seem to view life through a single lens.

For some, it’s money. They judge everything, from career choices to vacations to relationships, by its financial impact. Family is valued only to the extent that they can provide for them. Friendships are measured by status. Nature is worth noticing only if it offers a return on experience.

Others might put family above all else. To them, every decision revolves around proximity, togetherness, and parenting. Work, friends, and even self-care exist only to support the family structure.

There’s nothing wrong with caring deeply about a core value. The problem is concentration risk, when that single value becomes the filter for every other decision.

If something threatens your ability to live out that core value, your sense of meaning is at risk.

Hand-drawn sketch of a basket labeled “core value” dropped and shattered, illustrating the risk of relying on one core value.

How Value Systems Work: Pyramidal vs. Parallel Meaning Structures

In Meaningful Living, Logotherapy expert Elisabeth Lukas describes two broad types of value systems.

The first is the pyramidal value system, where one dominant value sits at the top, shaping how all others are interpreted.

Person linked to a central core value, which connects to multiple values, illustrating how core values shape personal priorities.

That top value becomes the lens for everything else. Author Mark Manson calls it your God-value, the value you unconsciously worship.

Two pyramids of values with different core values (“money” vs “family”), showing how priorities shape life structures.

The second type is the parallel value system, where several values hold roughly equal importance.

In a parallel system, meaning can come from multiple sources—family, vocation, health, friendship, community, nature. Losing access to one doesn’t eliminate purpose entirely.

Person connected to five parallel values, illustrating a stable value system with no single point of failure.

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When the Pyramid Collapses: What Happens When One Value Fails

A pyramidal system looks stable… until it’s not.

As Lukas puts it:

“If the chief value in a pyramidal value system topples, the whole life concept is in shambles.”

A person disconnected from a broken core value, with no backup values to rely on, illustrating the risk of a single-value system.

When a client’s dominant value is money and that resource disappears, self-worth goes with it. They may no longer feel deserving of love, friendship, or joy.

If a client’s identity is built entirely around family, life may lose meaning once the kids leave home. The same is true for those who define themselves through work—retirement can feel like exile rather than freedom.

Comparison sketch showing what happens when a core value like “money” or “family” breaks, emphasizing structural vulnerability.

Building Resilience: Helping Clients Diversify Their Meaning Portfolio

As planners and coaches, we help clients diversify financially, but meaning needs diversification, too.

Encouraging clients to develop a parallel value system gives them flexibility when life changes.

If family is central, add balance through other values like friendship, learning, health, or purpose-driven work.

If work provides identity, help clients explore creative, social, or spiritual outlets that still align with who they are.

Diversified values act like uncorrelated assets, when one area falters, the others can carry the weight.

Sketch showing a person connected to multiple values, with one breaking off but others intact—highlighting value system resilience.

Meaning Is the Ultimate Diversification Strategy

Helping clients clarify their values isn’t just self-discovery, it’s risk management.

A parallel value system allows clients to adapt when circumstances shift. It keeps purpose from collapsing when a single domain changes, whether through loss, transition, or success that unexpectedly feels empty.

When advisors guide clients to broaden the base of their meaning, beyond family, money, or work, they’re not only helping them plan finances…

They’re helping them plan for resilience.

Because diversification isn’t just a financial principle.

It’s a human one.

FAQ: The Risk of Concentrated Values in Financial Life Planning

What does “concentrated values” mean?

Concentrated values occur when one core value—such as money, work, or family—dominates all others. This creates psychological concentration risk, similar to a financial portfolio with a single holding.

Why is a single-value system risky?

When one source of meaning defines identity, any threat to that value can cause a collapse in purpose. A diversified value system helps clients adapt to change and loss.

What are pyramidal and parallel value systems?

A pyramidal value system has one dominant core value shaping all others. A parallel system spreads meaning across several values—family, vocation, health, friendship—so life stays balanced even if one area changes.

How can advisors help clients diversify their meaning?

Advisors can explore clients’ broader life domains by asking reflective questions like, “What else brings you a sense of meaning or fulfillment?” or “Which areas of your life carry the most energy right now?”

What does “meaning diversification” mean for clients?

It means developing multiple sources of fulfillment and identity. When one area—like work or family—shifts, others can sustain purpose. This approach builds emotional resilience and well-being.

Want to Learn More?

Money Quotient trains financial professionals in the True Wealth process and helps them implement the concepts into their practices. The first step is to learn about the Fundamentals of True Wealth Planning.