As we embark on a new year, it’s an excellent opportunity to assess our financial goals and determine if we’re progressing toward achieving them. Our team can help with more than just the technical aspects of investing, and we believe in helping our clients view their finances more holistically.
During our financial planning process, we delve deeper, working with you to understand your core values and use them as a guiding principle to achieve your long-term objectives. By considering these unique pieces together, we can help build and maintain your financial foundation, enabling you to fulfill the life of your dreams. During stress and uncertainty, we help provide a broader perspective to offer peace of mind, allowing you to face the unknown confidently.
Goal 1: Prioritize Your Core Values in Your Finances
There’s a certain magic to a new year, and it can even feel like a significant transition. During this time, you can set yourself up for future success by reflecting on your core values and priorities. Doing so lets you envision the life you want to lead, including spending quality time with loved ones, exploring new hobbies, or giving back to society.
Pinpointing your priorities will help you create a financial plan that aligns with your values and gives you a sense of purpose in retirement. Whether you’re five years out from retirement or are planning 15+ years into the future, this is a fantastic exercise in goal setting and thinking more about your big-picture financial values.
Brendan Frazier, host of the Human Side of Money Podcast, says, “Values persist while goals shift,” emphasizing the significance of incorporating your values into your financial plan. Seeking the assistance of a financial advisor with your best interest at heart can help you align your financial strategy with the things that matter most to you.
Goal 2: Connect Those Values to Tangible Financial “To Do’s”
After identifying your values, it’s crucial to translate them into actionable financial objectives by examining your expenses and investments more closely to help you achieve your desired outcomes. For instance, if family time is a top priority, you could budget for regular family vacations, weekend getaways, or even monthly dinners with extended family members.
If you hold an attachment to community involvement, you could allocate funds for donations to local charities, volunteer projects, or community events. Establishing specific financial objectives offers clarity and motivation to accomplish your values-driven ambitions.
To effectively transform your values into financial objectives, it’s vital to adhere to some essential principles:
- Get specific: Determine the exact dollar amount needed for each goal.
- Set timelines: Decide on realistic timelines (e.g., monthly, quarterly, annually).
- Prioritize: Determine which objectives are most important and achievable.
- Be flexible and consider potential trade-offs: Adjust priorities as circumstances change.
- Track progress: Regularly evaluate your progress towards your objectives and adjust as needed.
By following these principles, you can ensure that your financial objectives align with your values and that you’re progressing toward achieving them.
Goal 3: Live The Lifestyle You Desire
Next year is a time to explore new possibilities and opportunities. As you prepare for this new chapter, take some time to envision what your ideal lifestyle looks like. Do you see yourself lounging on the beach or exploring a bustling city? Think about the activities that bring you joy and fulfillment, and consider how to incorporate them into your daily routine.
While having a clear sense of what you want your life to look like is essential, it’s equally important to keep financial constraints in mind. As you craft your plan, consider your budget and determine whether your desired lifestyle is feasible. If there’s a gap between your ideal life and your finances, don’t worry! There are many creative solutions to bridge the gap, such as finding additional income sources or exploring budget-friendly alternatives.
Goal 4: Embrace A Healthier, Happier You
Managing healthcare expenses is crucial. Our health concerns increase as we age, which may lead to significant financial burdens. However, with proper planning, budgeting, and a focus on health and wellness, you can enjoy a comfortable and secure life.
To prepare for healthcare expenses, evaluate current and projected costs, explore financial assistance options, consider future health needs, and plan for ongoing expenses. In addition to avoiding illness, promoting overall well-being is essential, including budgeting for activities like winter sports and investing in health-related services like massage therapy or chiropractic care.
By prioritizing health and wellness and taking a proactive approach to healthcare expenses, you can enjoy a more fulfilling life and maintain high vitality.
Goal 5: Focus on Your Taxes – Before 12/31/24
Planning for a financially secure future is crucial, and tax efficiency plays a significant role. We recommend reviewing your tax return annually and assessing how changes to your portfolio could impact your current and future taxes. Collaborating with your accountant and financial planning team can minimize your tax liability and maximize your savings.
Here are some tax-efficient strategies for you to explore:
- Maximize tax-advantaged accounts, such as 401(k)s and IRAs, to lower your taxable income.
- Consider investment options that offer tax advantages.
- Leverage health savings accounts (HSAs) for tax-free contributions and withdrawals for eligible healthcare expenses.
Being proactive and strategic with your tax planning enables you to create a financially stable future. However, tax efficiency is an ongoing process requiring careful monitoring and adjustments.
Goal 6: Protect Against Emergencies
Maintaining an emergency fund is essential to cover unexpected costs. Unexpected expenses such as medical bills, home repairs, and unpredictable weather-related expenses can pop up. The fund should be easily accessible in a savings account or money market fund. An adequate emergency fund helps you navigate life’s uncertainties without financial worries.
Goal 7: Stay on Top of Your Finances
Regularly reviewing your financial goals is crucial to ensure you stay on track toward a successful and fulfilling retirement. As life can be unpredictable, your goals may change, and your financial plan should adapt accordingly. We recommend frequent check-ins, not just once a year. People change, relationships change, needs and wants change, and the world changes, so it’s important to remain flexible.
We believe in holding regular progress meetings to assess changes and progress, re-evaluate goals, and update the Financial Model to align with your evolving aspirations. Our ongoing reviews and discussions ensure that your investments and wealth management strategies align with your values and money.
The Importance of Professional Financial Advice: Trust Your Financial Planning Team
Setting financial goals in the new year can be daunting, but seeking guidance from your financial planning team can help ease the burden. At Paradigm, we strive to challenge mainstream financial thoughts and provide creative solutions to help you achieve your goals. We aim to assist you in making important decisions while ensuring the safety and easy accessibility of your retirement savings. Our team is committed to helping you maintain the lifestyle you have worked hard to achieve.
Accountability and prioritization are critical factors in successful retirement planning. It’s essential to take small, achievable steps and celebrate every milestone. We’re here to support you through the exciting and sometimes challenging times. Our success is when we have helped you succeed — whether in retirement, building a strong financial foundation, creating a legacy for children, or achieving your financial goals.