New Year's Resolutions. We've all been there. Most of us have thought about them each year at least in passing. But here's a question, do you have any money-related resolutions?
I asked each advisor what they would tell their clients if they were recommending New Year's Resolutions that had to do with financial planning.
Most of them said something to the effect of: 1) Save more. 2) Spend less. 3) Listen to your financial advisor.
- Review your long-term goals and make sure that your overall asset allocation is in line with those goals.
- Stick to it. The market can be volatile, but this doesn't mean you should change your long-term strategy because of it.
- Buy high, sell low (JUST KIDDING).
- Save more into your qualified retirement plan. It's important to set yourself up for success in the long-term.
- Don't put all your eggs in the government's basket. If Social Security is the linchpin of your retirement plan, we need to talk. Again, it's important to set yourself up for success in the long-term.
- Invest your tax refund. You lived the entire year without that money, consider investing it instead of splurging.
Use the principles of the SMarT program (Save More Tomorrow) to increase retirement savings. The idea is to commit today to saving future raises in salary - plan to save that extra money when it's not subject to immediate gratification.
Happy New Year!