Life isn’t static: Our goals change, our circumstances change, and our viewpoints change.
That’s why it’s important to make sure you don’t have an old, static financial plan. The beginning of a new year is a perfect time to review your plan, or if you don’t have one, to create it.
Financial planning is far more than deciding how to invest your money. It’s a process that allows you to connect your finances with your goals. Having a lot of income or being wealthy is pointless if it doesn’t help you accomplish the things in life that bring deep satisfaction.
The financial planning process is a simple way to gain personal perspective. It’s a means of determining exactly where you stand today—i.e. what does your personal balance sheet look like. It’s a catalyst for clarifying exactly what we want in life. And ultimately it’s a roadmap that shows you what you must do to reach your goals, including how you need to invest your money.
If you already have a financial plan in place, the start of the year is a great to update it. Have your goals changed? Has your risk tolerance changed? Have your personal circumstances changed? A conversation with a financial advisor can help uncover answers to these questions that you might not have been aware of.
You may decide to add short- and long-term goals to your financial plan. Short-term goals might include paying off a car loan or retiring several thousand dollars worth of credit card debt. It’s beneficial to review long-term goals as well. Has the amount of money you’ll need for retirement changed? Are you contributing enough to your savings to reach that goal? Anderson can help you re-check your target goal and how much you should be saving to reach it.
Finally, the beginning of the year is the time to let go of any second-guessing about the past year. Dwelling on financial disappointment is simply a distraction from working toward your goals with a fresh resolve. I invite you to get in touch as we start the next year to review or create your plan.
