Many people use the New Year to reflect on the year that has just passed, often in a blur, and begin thinking about the future and how to achieve their hopes and dreams. Similarly, the new financial year is a good opportunity to reconsider financial strategies and goals.
Below is an easy-to-follow guide to getting your finances in order for the year ahead.
1. have your key financial goals changed?
Our lives are not constant and our goals change slightly from year to year. Also, major life events such as serious illness, the birth of a child, inheritance, marriage and the death of a parent or spouse can all result in significant changes to our wealth management goals.
2. prioritise your goals.
Not all goals are equal and to ensure you aren’t overwhelmed with the task ahead of you, it is important to rank and prioritise goals and decide what timeframe you want to achieve them in. Being realistic about your timeframe is essential to ensuring that your goals will be achieved.
3. short, medium or long term?
Most industry experts agree that a short-term goal is one that can be achieved within a year or so. Medium-term goals typically require two to five years, and long-term goals usually take longer than five years.
For example, reducing credit card debt is likely to be a short-term goal, whereas saving for a home deposit would often be a medium-term goal. Depending on your age, providing for retirement is a long-term goal.
4. if your financial goals have changed, how will this affect your financial strategy?
This is where the advice of a financial adviser is critical. We have the tools and knowledge to create projections that take into account changes to your goals, and changes to your timeframes for achieving them. These projections will help you to see where your plans for savings, assets or investment contributions may need updating.
5. be investment savvy.
Make sure that your investments support your level of risk and your goals. We can develop a tailored analysis that best suits your individual risk preferences and goals. We can also review your portfolio and advise on any sell-downs or top-ups that would benefit you. Working with your accountant we will ensure changes are implemented in a tax-effective manner.
Reflecting and thinking about your financial position and setting a clear path is critical to making sure you reach your goals. Talk to us about making sure you are always on track.