New Year & New Financial Plan
The beginning of each new year often comes with hopeful fresh starts, resolutions for self-improvement and intentions to make the upcoming twelve months better than the past. And yet somehow come December, millions are left with a list of best laid plans that didn’t pan out.
The statistics on individuals meeting their New Year’s Resolutions are staggering*!
8% Reach their Goals
25% Fail to make it past week 1
46% Fail to make it past Month 1
Questions:
When it comes to your finances, what is standing in the way of accomplishing your goals?
Don’t know where to start?
Overwhelmed at the task at hand? Relying on your financial advisor to ensure you’re on track?
Join me in being in the 8% of achieving our New Year’s Resolutions.
Here are 3 actions to take this year, that will assure you’re on the path to financial independence.
COMMIT TO A FINANCIAL PLAN.
I’m not talking about an online calculator to tell you if you’re on track to reach a few million dollars in your retirement savings. I’m talking about a deep dive comprehensive plan. One that provides a real road map of how to cover the big stuff like college tuition, and your mortgage and yes- retirement. A plan that considers future fluctuations in inflation and strategies for paying taxes and provides a realistic picture of how you can spend your fun money on the vacations of your dreams. This process will take some time. Once you have a real financial plan in place, you’ll have a true picture of your personal balance sheet and assurance that you’re working toward achieving your financial goals. If you’re not working with a wealth advisor that can provide this level of planning, you’re truly missing out.
WELCOME THE POWER OF FINANCIAL LITERACY.
How well do you understand what you own?
Do you have an Investment Policy Statement?
How will you know when you can retire?
Financial Advisors seem to be coming out of the woodwork. The vast majority sell investment products as wealth management. Do you know what fees and commissions you’re paying to your advisor or what the expense ratios are of the products your advisor is selling? According to a recent SSGA survey* the answer is an emphatic “No”. Knowledge is power. Before you invest your 401(k) rollover from your last job, or spend your annual bonus or quarterly commission check, know exactly how that investment will fit into your overall portfolio strategy. In a recent study over half of the investors interviewed didn’t fully understand the impacts of diversification. I’m not suggesting you need to know how to calculate the Sharpe Ratio of your portfolio, but I am absolutely saying it’s time to go beyond the basics. Partnering with a Registered Investment Advisor that will provide comprehensive wealth management can lead you to the work-optional lifestyle you can’t wait to experience.
EMBRACE DISRUPTIVE INNOVATION AND TECHNOLOGY.
If you miss this, you miss everything. The world has changed. An investment strategy that doesn’t incorporate disruptive innovation is missing the opportunities of the future. Genomics is dramatically changing the future of medicine. Renewable energy through water, solar, and wind sources is growing worldwide. Disruptive technology like AI, FinTech, 3D Printing, and Advanced Robotics is changing every industry. Are you investing in the future or is your portfolio the mediocre standard large cap/small cap/fixed income mix of the past? You and your family deserve to have an advisor aligned to tackle all the complexities in our rapid changing world. Enjoy having confidence in your financial future.
Consider this your rally point for action and don’t take failure as an option Join me this year in being in the 8% of achieving our New Year’s Resolutions. Start with putting a financial plan in place and educate yourself on what matters most.
This year, commit to putting your finances first.
Your future self will thank you later.
*Sources: University of Scranton Journal of Clinical Psychology, State Street Global Advisors Survey