Setting New Year's Resolutions?
Don't Forget About Your Financial Goals
Specific and realistic goals form the foundation of any solid financial plan. But if it’s been a while since you reviewed your goals, you might be surprised to find them outdated or no longer realistic. The unpredictability of life and economics has a way of upending the best laid plans, so it’s smart to refresh your financial goals annually. And by doing so in January, it makes it easy to track your progress by calendar year, while also providing a timely moment as you set your new year’s resolutions.
Keep these tips in mind as you dust off your plan and update your goals.
- Look at your life: What has changed in recent years? Marriage, divorce, health issues, career changes, children graduating – significant events like these can substantially impact your investment goals, insurance needs and estate plan. It’s also a good time to revisit your household budget, as controlling your daily living expenses can help you fund short- and long-term goals.
- Maintain liquidity: While most of your net worth may be tied up in fixed assets and investment accounts, make sure you have easy access to the liquid funds you’ll need for this year’s big-ticket purchases, such as a child’s wedding or a dream vacation.
- Get specific: With every passing year, you benefit from a clearer view of long-term needs, such as impending college costs for children or your own retirement expenses. Use that knowledge to fine tune your goals but keep them flexible while plans are still fluid. You may also benefit from breaking up long-term goals into manageable milestones, which can help you evaluate any changes needed along the way.
- Play the long game: While it’s good to stay aware of economic issues and market performance, don’t make rash decisions based on temporary conditions, which could potentially derail your long-term plan. Work with your advisor(s) to ensure your overarching plan is still solid and stick with it.
- Insist on objective advice: It’s critical to work with professionals who will challenge your assumptions, ask the hard questions and give it to you straight if your goals aren’t realistic. The best financial planners pair their experience with sophisticated software to analyze your probability of success so you can set ambitious yet attainable goals.
Once you’ve refreshed your financial goals, set one more: to meet with your team of advisors and review your plan at least once a year. Need a wealth advisor you can trust? Contact Brad Clark at 214.515.4870 or Brad.Clark@frostbank.com for financial support.
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Investment and insurance products are not FDIC insured, are not bank guaranteed, and may lose value. Brokerage services offered through Frost Brokerage Services, Inc., Member FINRA/SIPC, and investment advisory services offered through Frost Investment Services, LLC, a registered investment adviser. Both companies are subsidiaries of Frost Bank. Additionally, insurance products are offered through Frost Insurance.