How financially prepared are you?Submitted by Agrawal Associates on January 31st, 2018
Jan. 29, 2018
Making and sticking to a budget is often a very popular New Year’s resolution. It’s right up there with daily exercise and not working as many hours each week.
The problem is, approximately 80 per cent of resolutions fail by mid-February (U.S. News). Failing on a resolution to be more budget-savvy can be detrimental to your current lifestyle but also your future retirement goals.
As 2018 rolls on, it’s time to dedicate some attention to updating and planning your finances for the year ahead so that you can stay on track and have the future you’ve always dreamed of.
Preparing for an annual financial review can be overwhelming; however, we’ve put together a checklist with seven key items for your consideration. Go through the list, then bring a completed copy to your next planning meeting, and you’ll be starting 2018 on the right foot!
- Life changes. Moving, getting married, changing jobs, selling real estate. These are all significant life changes that play a role in your financial planning.
- Milestone ages. As much as many of us hate to admit it, we are getting older. Some of us are hitting a point where we need to draw pension income while others are considering long-term care options.
- Health. You may realize there’s a balance left in a health spending account that is about to expire, or that your existing health and dental plan is going to be invalid as your job situation evolves.
- Family. Family planning is an important element to financial planning. Whether you have RESPs or have started making cash gifts to family members, it should all be built into your plan.
- Taxes. Tax planning doesn’t just happen every Spring — it’s a 12-month process to ensure you are maximizing your return.
- Investments. Reviewing your investments should happen annually, at a minimum, to ensure everything is properly balanced and diversified.
- Income security. Do you have enough insurance to protect your family? There are many situations that happen in life that are unexpected. The more we plan for these in advance, the better we can weather the storm.
Take some time with the Agrawal Associates checklist and then work with your advisor on a plan that sets you up for success in 2018 and beyond!