Your Top Ten Financial Planning To Do's For A Great New Year!

If you've made a resolution for 2024 to be the year you take control of your financial future, but aren't really sure where to start - boy, do we have a list for you!

As you look at your financial plan, here are 10 areas to consider — and when you're ready to discuss, give us a call.

1. Assess Your Current Financial Situation

Review your checking, savings, retirement accounts, and investment statements quarterly. How much do you have in income and savings? What are your expenses and debts? Now calculate: What is your debt‐to‐income ratio? (If it’s above 36%, this may indicate you should look at opportunities to bolster your finances against unforeseen circumstances by either lowering your debt or increasing your savings.) 

2. Set Financial Goals

What would you like to do in the short-term? (e.g., are there any debts you’d like to pay off?) What would you like to do in the mid‐term? (e.g., are you saving for a house or your child’s college tuition?) What are your long‐term goals? (e.g., when would you like to restore or sell your business?) Are your goals SMART — Specific, Measurable, Achievable, Relevant, and Time‐bound? 

3. Align Your Budget With Your Financial Goals

Do you know your post‐tax income? Are there additional income streams you can pursue to increase your income? Do you have a clear understanding of your spending habits, including essentials like housing, utilities, food, personal care, transportation, insurance, loan payments, healthcare, and childcare? Here, again, are there opportunities to cut expenses and allocate more to savings and investments? 

4. Set Aside Your Emergency Fund

Are you prepared for job loss, major housing or auto repairs, urgent medical expenses, or unforeseen travel? Do you have three to six months’ worth of living expenses set aside for these emergencies? Is your emergency fund earning interest? Are these funds relatively liquid and available with little notice? 

5. Manage Your Debts 

Is your debt preventing you from paying regular bills like utilities and housing?  Is your debt limiting your ability to save for emergencies, a child’s education, or retirement? Have you explored consolidating or restructuring any debts? Are you paying off your highest interest debts first? 

6. Review Your Investment Strategy 

Is your portfolio diversified? Are you comfortable with the level of potential growth and volatility in your investments? Have you rebalanced your portfolio within the last two years. Assess your risk tolerance level to understand how much risk you're comfortable with concerning potential losses at this stage in your life. 

7. Plan For Retirement 

Are you maximizing your Roth IRA, pension plan, or 401(k) — including the employer match (if offered)? Are you making catch‐up contributions (if you’re 50+)? If you’re nearing retirement, have you switched to more low‐risk investments? Is your retirement savings plan on track to meet your goals? 

8. Review Your Insurance Policies

Do your health, life, auto, and home insurance policies reflect your current priorities? (e.g., if your children are grown, do you still need as much life insurance?) Should you increase, update, or decrease any of your coverages this year? Are you paying a competitive rate for your insurance or might bundling save money? Are there any areas where you have unnecessary, duplicate coverage? 

9. Maximize Your Tax‐Advantaged Accounts and Deductions

Are you tapping tax‐advantaged accounts like HSAs and 529s? Have you reviewed tax‐efficient investments and offset your capital gains tax with capital losses? Have you established trusts to minimize the tax burden for your heirs? Have you considered establishing a charitable trust to ensure your donations are as tax‐efficient as possible?

10. Work With a Professional and Enhance Your Education

Have you had a life event that could impact your financial picture — a change in marital status, children, job, or state of residence; sold a business or been the beneficiary of an inheritance? Can you automate any of your savings contributions so you can consistently work toward your goals? Is inflation and the economic climate affecting your ability to save and maximize growth? 

Do you want to be better informed about financial laws and tax strategies that might affect you? Periodic reviews of your financial health and current life situation help you track progress and adjust to changing conditions. Working with me can provide a tailored, comprehensive, and personalized strategy that aligns with your needs, concerns, and aspirations. Remember, consistency and adaptability are the keys to successful financial planning and peace of mind. 

Wealthcare Capital Management LLC and Wealthcare Advisory Partners LLC (Wealthcare) is an investment advisors registered with the SEC under the Investment Advisors Act of 1940. Additional Important Disclosures may be found in the Wealthcare Advisory Partners LLC ADV Part 2A. Re‐ quest a copy at compliance@wealthcarecapital.com. This communication is for informational purposes only and is not to be considered advice or a recommendation of any specific investment product or strategy. Views and opinions are subject to change at any time based on market and other conditions. Before acting on any information in the content of this article, you should seek the personalized advice of legal, tax or investment professionals. ©2023 Wealthcare Advisory Partners LLC. All Rights Reserved.