In Perspectives

Starting a new year is a great time to make sure your financial health is strong and secure. Tax season is just around the corner, but before it gets here, now is the time to review your financial plan, income, and goals.

Your stage of life will drive your financial priorities. Here are some key aspects of your financial life that should be important for you to reevaluate.

Under 40 – The Growth Phase:

For those who are working in your early careers, perhaps starting family, evaluating the purchase of your first home, and looking ahead, consider the following:

  • Short Term Goals – House purchase (mortgage), wedding, car, travel, further education, paying off or reducing debt
  • Income – New employment, increase in salary or bonus, stock options (vesting)
  • Savings – New target goals, emergency savings fund, 401(k) retirement contributions, IRA, Roth, employee benefits, other
  • Changes to marital or family status – considerations for filing in April, joint accounts, titling of assets
  • Receiving financial gifts – Do you have family considering annual gifts to you, funding 529 accounts, or assisting with a home purchase?

40-65 – The Prime Years:

For folks in your prime professional working years or just at a stage in life where you’re thinking more seriously about the timing of retirement, you’ve got a lot on your mind! You may be playing a more active role with aging parents, growing children, and everything in-between. Consider these points:

  • Goals – Timeline to retirement, second home, renovations, philanthropy, travel
  • Income – Employment changes, increase in salary or bonus, stock options (vesting), future grants
  • Savings – New target goals, HSA, 401(k) retirement contributions, IRAs, employee benefits
  • Family – Support for children, gifting, weddings, parental assistance, college funding, graduation
  • Cash Flow Needs – Portfolio income, liquidity requirements, HELOC, line of credit

65+ – The Golden Horizon:

For those of you in retirement or soon to be, you have a different perspective on life than when you were younger. Consider the following:

  • Cash Flow Needs – Annual liquidity requirements, anticipated expenses from portfolio, larger expenditures (family vacation, etc.), withdrawal rate
  • Income Replacement – Develop income strategy, Social Security benefits, RMD’s, pensions, rental income, annuities, rollover options, etc.
  • Family – Support for adult children, gifting, weddings, parental assistance, estate plans, college funding, graduation
  • Time – What is keeping you occupied during retirement? New hobbies? Luxury travel?

Keeping Your Financial Health Strong

As you review your financial picture, remember that a well-thought-out plan is key to long-term success. We’re committed to helping you navigate the complexities of financial planning, ensuring you’re well-equipped to make informed decisions throughout 2024 and beyond. With a healthy plan in place, you’ll be able to enjoy the entire year just a bit more relaxed and confident, knowing you have a strong financial foundation underneath it all.

Here’s to a year filled with prosperity, wise investments, and financial peace of mind!

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