I’d like to take a moment to wish you a happy, healthy, and prosperous New Year! As we look to the year ahead, many of us make resolutions to accomplish objectives that are important to us, our families, and futures. Why not resolve to plan for a better, financially secure retirement, or make sure that you and your family are properly protected in the event of an unexpected health emergency.
Studies show three of the top New Year financial resolutions are saving more for retirement, paying off debt, and spending less. Other financial resolutions may include saving for college or building an emergency fund. 1
Saving more for retirement can mean increasing your employer retirement plan contributions (such as a 403(b), 457, 401(k), etc.), as well as adding other investment vehicles such as IRAs to your retirement portfolio. It is also essential to review your investment allocation to make sure it is suitable for your current goals. You want your retirement savings to last throughout your golden years so it is important to preserve those assets. There are many insurance options that provide financial protection for you and your loved ones in the event of a long-term illness or disability.
Spending less and paying off debt can be challenging, but creating a budget to follow throughout the year can help. Review your essential and discretionary monthly expenses to see what you can reduce or eliminate. This will make more funds available to save, as well as help you control debt. Credit card debt can be the most critical to pay off when trying to reduce debt. Review interest rates and consolidate debt to help you make a plan to pay it down. Once your balances are gone, you can allocate more towards other financial resolutions, or you can use some of that surplus toward things you enjoy (but make sure not to charge more than you can afford to pay off at the end of the month).
Strothman Wealth Care is here to support you and work with you to help you identify the areas you may need to change or improve. You can implement a plan to stay committed to your resolutions and accomplish your goals. Please contact Ryan Antepenko to establish your 2021 Financial Resolutions.
1 Fact Sheet: The Fidelity Investments 2015 New Year Financial Resolutions Study