Securing a Solid Financial Foundation for 2023

Start this New Year with a Custom Retirement Paycheck Plan

New Year’s Day is a time for making resolutions. People often commit to losing weight or taking other actions to improve their lives. Why not start the year off right by adding a comprehensive financial review to your list? Reviewing your finances annually can help give you the confidence to know you are building a solid foundation. It also provides an opportunity to make any necessary changes for the year.

Here is a brief description of some basic areas to check:

Stem the flow of red ink. If your income exceeds your expenses, you have a positive cash flow. If your income is less than your expenses, you have a negative cash flow. If you are “in the red” with a negative cash flow, you may want to reorganize your budget to minimize any unnecessary expenses.
Protect against unexpected risks. Life can sometimes throw you a “curve ball.” An unexpected event, such as a sudden disability or untimely death, could leave your family facing serious financial hardship. Adequate insurance is the cornerstone of most financial plans. It offers protection to help cover life’s unforeseen risks.
Build a retirement nest egg. Most people will need to supplement pension and Social Security income with personal savings in order to maintain their lifestyles when they retire. If you have not yet estimated your retirement needs, now may be a good time to do so. It is never too early to begin a disciplined savings program to help ensure you will have sufficient funds to enjoy a comfortable and secure retirement. Consider opportunities that offer tax benefits, such as a 401(k) or Individual Retirement Account (IRA).
Earmark funds for special goals. To increase your chances of success in achieving your financial goals, it is important to prioritize them. For every financial goal you set, develop a plan: 1) project the cost; 2) estimate how long it will take to reach the goal (your time horizon); and 3) identify how you will fund the goal (usually by scheduling savings, liquidating assets, or taking a loan).
Beat inflation. In order to maintain your buying power, your income must increase at least as much as the rate of inflation. To really get ahead, your income must outpace inflation. If inflation starts to beat you, your standard of living will decline. As you review your finances, it’s important to understand the impact of inflation on your spending and saving.
Minimize income taxes. Many taxpayers reduce the amount they owe the government by taking advantage of deductions, such as for home mortgage interest, retirement plan contributions, and charitable donations. There may be other ways to reduce the income tax bite, as well. For instance, under some circumstances, losses or expenses from previous years may be carried over to the next tax year.

It takes time to build a secure financial foundation. By including a comprehensive financial review in your list of New Year’s resolutions, you can take action to make the most of the coming year. By faithfully tracking your progress in these areas, you will be well on your way to achieving your dreams.

If you want to be sure that your finances are in good shape for the new year, take the time now to schedule a comprehensive financial review.

Here at The Wealth Guardians, we offer a no-cost, no-obligation review meeting where we’ll do a deep dive into your current situation and review your list of financial New Year’s resolutions. At the end of our meeting process, we’ll provide you with your Custom Retirement Paycheck Plan.

We’ll show you in black and white your custom retirement income plan that is comprehensive, individualized and based on strategies that balance growth with downside protection. Get your Custom Retirement Paycheck Plan now!