Rather than making New Year’s resolutions, consider beginning the year with a New Year’s Review. It’s simple, can’t really fail and it might be fun: How can I make this year my best year ever?
Goals
Begin by identifying what you would like to accomplish or prioritize in the year ahead. These goals might relate to health, family, work, retirement, relationships, travel or dreams.
When a goal feels difficult to accomplish, pause and ask yourself what might be standing in the way. Very often, this brings you to your finances.
“Put a dollar sign behind your dreams”
A thoughtful financial review helps turn intentions into realistic plans.
Spending plan and income
Has your spending remained within your income and are they aligned with your priorities? Consider the cost of your plans for the coming year and whether adjustments are needed, including setting aside funds for specific objectives.
Tax planning
Are you taking full advantage of current tax laws, available deductions, and tax-saving strategies? Have you handled estimated tax payments properly? Careful planning in this area can meaningfully improve long-term outcomes.
Insurance planning
Regular reviews ensure that your coverage remains appropriate as your life evolves. Have you recently reviewed the beneficiaries on your Life Insurance? With your higher income could you increase your disability insurance? Has your home/vacation home increased in value and is the coverage of the Home Insurance still sufficient?
Investment planning
Market volatility can naturally cause concern. Is your portfolio, and 401k still aligned with your goals and risk tolerance? Ensuring that all investment assets are properly documented and monitored supports better decision-making and gives you peace of mind.
Retirement planning
Have you maximized your contributions to your plan? Are you taking advantage of the new tax laws that have higher contribution limits or new plan features? Have there been any changes in the investments in your employer’s retirement plan?
Estate planning
Last but not least! Your estate plan. We hope you have an estate plan in place. Life changes—marriages, children, grandchildren, new property—often require updates to wills, trusts, and beneficiary designations. Ensuring assets are properly titled and documents remain current helps protect the people you care about most.
We can, of course, assist with an in-depth review of any of these areas. It is good to monitor every year your life goals and the finances that help you achieve them. Regular updates, where appropriate is key to keeping you on course for success.
