At the beginning of each year, many people resolve to change their lives for the better. To those who are looking to improve their financial situation, please find some useful recommendations:
Increase your systematic savings: If you are still working and you are trying to achieve financial goals such as retirement, funding college expenses or perhaps obtaining a new home, the best way to accomplish those goals is through systematic savings. Consider increasing your current monthly savings. No one has ever complained to me that they wish they hadn’t saved so much money.
Write down your goals: Whether you are an expert or novice investor, you will be more successful if you write down your goals. It’s a great exercise to determine how long you will need to work before retirement and how much you will be able to spend each year without running out of money. We recommend that all retirees should have a written income plan to ensure that they won’t ever run out of money.
Become a more disciplined investor: In order to make appropriate investment decisions, you must understand and invest consistently with your risk tolerance. One way to better understand your risk tolerance is to complete a two-minute survey at www.findoutmyrisk.com. Once you have quantified your risk tolerance, you should measure the risk of your portfolio by using a portfolio analysis software. Alternatively, have your portfolio analyzed by a Certified Financial Planner™ to make sure that you aren’t taking too much risk.
Use the tax code to your advantage: Each financial decision that you make may have significant tax consequences. Making the correct choices when it comes to determining which accounts to take income from, which income strategies will result in the most after-tax income, how to maximize retirement account contributions while working and how to efficiently withdraw funds from retirement accounts during retirement can drastically improve your family’s lifestyle. Resolve to educate yourself on the best tax strategies before making financial decisions.
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For more information about any of the products and services listed here, schedule a meeting today or register to attend a seminar.