![]() ![]() ![]() It is the perfect time to reflect on your financial practices for the previous year and get started thinking about your financial journey in 2023. How to Plan Your Financesįinancial planning plays a pivotal role in allocating funds to the best-suited investment vehicle to add value to your overall financial portfolio. Millennials seek a greater degree of financial freedom, which also contributes to this trend. A one-stop solution that allows them to plan, manage, grow and address their financial needs. Today’s digitally-savvy generation prefers to manage their finances using digital platforms or apps. ![]() In recent years, financial planning has evolved overall, and more people are recognizing the importance of having a long-term financial plan. Learning from past financial decisions can help us make better financial decisions in the future. Therefore, it is a good idea to review our financial decisions from last year based on our current financial situation and the market environment. Ask for a projection of your retirement savings to determine whether you're on track for your age and life stage.Each year is filled with new challenges that we have to overcome, learn from, and move forward. Consider different scenarios in your plan to see what levers you can pull to achieve your goals more quickly. Your advisor will likely use a wealth-planning tool to help you visualize your financial well-being. Come prepared with a list of questions, and be sure to share your financial priorities and concerns. Schedule a face-to-face meeting with your financial advisor to discuss your situation and create a plan. There are likely opportunities to improve your financial wellness or accelerate some of your goals. Rebalance your portfolio of investments so your asset allocation is properly positioned for your risk profile and investing timeline. It's important to have some cash reserves, but consider putting your excess cash to work. When inflation is high, cash and similar investments (such as money market funds) will normally yield negative returns. Having the right asset allocation-i.e., the way in which you divide your assets among stocks, bonds and cash-is particularly important during times of market volatility. To do this, you'll need to gather and review your personal and financial data, including savings and investments-and don't forget about your retirement account and Health Savings Account balance. Paying for your education or your child's educationĪfter you've identified your goals, the next step is to determine your current status.Consider ranking your goals by level of importance and investing timeline. While it's important to set realistic targets, it's also important to dream a little. Start with the end in mindīegin the process by reviewing your goals and objectives. That's why, just like medical checkups with your doctor, it's important to check on your financial wellness on a regular basis, as well.įocusing on these five steps as part of the checkup process can help you build a solid financial foundation now and for years to come: 1. Whether it's due to challenging market conditions, unexpected life events, general uncertainty about your preparedness for retirement, or any other factor, it's normal to be concerned. If you're feeling anxious about your finances, you're not alone. ![]()
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