Many people use the Christmas/New Year period 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 great opportunity to reconsider financial strategies and goals.
Christine Swanson, Owner and Financial Adviser at Prominent Financial, says, “Reflecting on and thinking about your financial position, together with setting a clear path and plan, is critical to achieving your dreams. Life changes and your financial plan should adapt to those changes.”
Have Your Key Financial Goals Changed?
Our lives are not static, and our goals often change from year to year. Major life events, such as a serious illness, the birth of a child, an inheritance, marriage, or the death of a parent or spouse, can all result in significant changes to our wealth management goals. It’s a good idea to check in with your goals at various stages throughout the year to ensure you are on track and that your goals still reflect what you are trying to achieve. Regularly reviewing and adjusting your financial plan can help ensure it continues to align with your evolving needs and circumstances.
Prioritise Your Goals
Not all goals are equal. To avoid feeling overwhelmed, it’s essential to rank and prioritise your goals and determine the timeframe in which you want to reach them. Being realistic about your timeframe is crucial to ensuring your goals are achievable.
Short, Medium, or Long Term?
Most industry experts agree that:
- Short-term goals can be achieved within a year or so.
- Medium-term goals typically require two to five years.
- 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. Paying off your mortgage and providing for retirement are long-term goals.
Be Investment Savvy
Make sure your investments align with your risk appetite and objectives. A tailored analysis should address your individual risk preferences, and regular portfolio reviews are essential to determine any adjustments that could benefit you. Your adviser should work closely with your accountant to ensure any changes are implemented in a tax-effective manner.
Adapting to Change
If your financial goals have changed, how will this affect your financial strategy? Licensed advisers have the tools and knowledge to create projections that consider changes to your risk level, goals, and timeframes for achieving them. These projections help you understand where your plans for savings, assets, or investment contributions may need updating.
A Final Thought
Reflecting on your financial goals and making necessary adjustments is key to staying on track with your financial plan. At Prominent Financial, we recommend checking in with your goals regularly to ensure they still align with what you’re trying to achieve. Whether you’re starting fresh this financial year or looking to refine your strategy, reach out to us today. Our team is here to help you navigate these changes and ensure your financial plan is aligned with your life goals, setting you on the right path to achieving your dreams. Please book an appointment with our team here.
