Happy New Year! Happy 2017! This is your opportunity for a fresh start—to try to accomplish new resolutions or revisit some older ones. I hope one of your goals involves creating or reviewing your financial plan. Here are a few tips to help you get started.
- The heart of financial planning is your cash flow. The amount of money that you spend each month is critical for budgeting, saving an emergency fund, retirement planning, and purchasing life insurance. Do not estimate the numbers; actually track your spending.
- Review your investment portfolio. Look at your savings goals, your risk tolerance, your asset allocation, and the fees associated with your account and the funds.
- Increase the amount you are saving for retirement. Even small amounts of money can make a major difference if you save them over long periods of time.
- Create an estate plan. Most clients who come to see me do not have an up to date estate plan. Remember that you are doing this for the people that you love.
Most New Year’s resolutions are abandoned well before the end of January. Don’t let that happen to you. If you get too busy, make your final resolution to reread this list in March, June, and September. It’s never too late to start.