As we enter 2021, you may be thinking about setting New Year’s resolutions. We hope you take the time to think about ways to improve your finances. Here are four resolutions to help you reach financial success.
Make a Plan for Your Money
To get yourself on the right financial footing in 2021, it’s important to have a financial roadmap for the good times and the not-so-good times. Creating customized financial roadmaps is what we do at Zephyrus Financial Services. Understanding what’s important to our clients allows us to help make their dreams a reality. It starts with setting goals.
Here is your financial resolution to-do: If you have a financial plan - great! But before you get too far into 2021, revisit your dreams. Something may have changed to redirect your focus. Perhaps you want to finally take that big family trip or maybe you’re looking to boost your retirement savings so you can enjoy your golden years. Life is always changing. Resolve to update your financial roadmap to get yourself to the next step in life. As goal-oriented financial advisors, our favorite call to make is when we get to tell a client we have reached or surpassed their goals and it’s time to dream bigger and set new goals! If you don’t have a financial roadmap, resolve to create one. We can help you get started. The first step to feeling confident in your financial future is talking about your dreams, setting goals, then creating a roadmap to reach those goals.
Saving money now is so important to feeling financially secure as you enter retirement. Making saving a habit will help you pay for the things you want in life, it can protect you from a financial crisis and help you avoid debt. When you save money, you reduce financial stress and gain a sense of financial freedom.
Here is your financial resolution to-do: It doesn’t matter how much you have saved today, what matters is that you start. If you were one of the many who decreased their daily spending during the pandemic and saved more, continue the momentum into the new year. If you’re struggling to save, consider increasing what you’re contributing to your retirement accounts. Think of it as paying yourself first. If you have money automatically taken from your paycheck, you won’t miss it. Consider increasing those contributions year after year until you’re saving about 20% of what you make.
Diversify Your Portfolio
We all want to get the most out of our investments. It’s important to have a mix of stocks, bonds and cash in your portfolio. Be sure you’re comfortable with your choices, even in a down market. Diversification* of asset classes can help reduce your financial risk.
Here is your financial resolution to-do: When analyzing your investments, be sure your choices are in sync with your long-term goals. Consider tax-advantaged accounts, like a traditional or Roth IRA. Resolve to evaluate your portfolio’s performance at least twice a year. Remember, as you get closer to reaching your goals, you may want to reduce your investment risk. Diversifying your investment portfolio across product types and economic sectors will also help reduce your overall risk. Working with a professional can help you create a mix that is right for your specific situation. All of our investment research is done in-house. We use our own models, review accounts every day and rebalance quarterly. Be aware of investment fees. Paying too much will negatively impact your investment returns. Keep yourself updated on whether there are any changes to your fees, and watch your account statements closely.
Ask for Help
If you’re 5, 10 or 20 years away from retirement and have never talked with anyone, don’t be embarrassed to ask for help. Working with a financial advisor will keep you accountable and on track to reaching your goals.
Here is your financial resolution to-do: If you have a financial advisor, resolve to meet with them regularly. Sit down together to revisit your goals. If you’ve never sat down with a financial advisor, resolve to look for someone who is a fiduciary. This means they are focused on creating a financial roadmap with your best interest in mind to help grow your money. They will look at your financial documents to get a clear picture of where you stand and if any adjustments need to be made.
Financial decisions can be confusing and overwhelming. We are passionate about sharing our knowledge and expertise with each and every one of our clients to help them understand every aspect of their financial roadmap. Increase your financial health now and in the new year. Call us today to set up a meeting. We look forward to hearing from you!
* A diversified portfolio does not assure a profit or protect against loss in a declining market.