The beginning of a new year is the perfect time to have a conversation about the various factors that can influence your planning.
One of the best ways to evaluate progress toward pursuing your financial goals is with an annual review, according to Texas Financial Advisory.
It’s also an ideal time to conduct this appraisal. It shouldn’t be a time for regrets and second-guessing about the things you did or didn’t do. Instead, focus on the investing experience you’ve gained.
Brooklynn Chandler Willy, president and CEO of Texas Financial Advisory, explained the basics of how to map your financial plan to move closer to your goals in the new year.
How can I position myself to be ahead for 2022?
- Consider opening or adding to an IRA. Annual contributions limits are scheduled to increase in the coming years with additional “catch-up” contributions allowed for those 50 and over. Evaluate to see whether a traditional IRA or Roth IRA makes sense for you.
- If you haven’t already done so, you may wish to take some losses in your non-retirement portfolio accounts. The losses can offset profits earned from other investments in your portfolio.
- Rebalance your portfolio. Uneven price movements in your investments can upset the balance over time. Is your actual asset allocation in line with the desired allocation mix, determined by your risk tolerance profile? Maybe an adjustment is necessary.
- Evaluate your insurance coverages to make sure your risks are minimized.
- Revisit your assets and debt and evaluate whether your risk tolerance continues to be appropriate.
- Start filing taxes as early as Jan. 22.
Sometimes the incremental changes that occur year-to-year may not seem like a big deal. In reality, though, they can really add up. Planning can evolve to protect and strengthen the people and organizations that are important to you.
Have questions about the complimentary checklist? Texas Financial Advisory is available to assist you. There are many reasons why having a good conversation now can set you up for success later.
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