Financial Success Awaits: Get Organized With These Actionable Steps for the New Year

As we continue to set intentions in this new year, we think about getting organized both physically and emotionally.  One very important intention that can get overlooked (and doesn’t include tearing apart your house) is to organize your financial affairs!  Cleaning out the old financial clutter and starting the year organized can be a crucial step toward ensuring a successful and secure future.

Planning is garbage-in garbage-out.  When a client’s finances are organized, the planning is more accurate.

-Raquel Hinman

I get to know my clients very well, both personally and financially, and many of our conversations around organization range from financial to real-life clutter!    To guide you through this process, I’ve outlined my top 7 actionable steps to help you get organized and set the stage for financial prosperity.

Start by creating a snapshot of your current financial situation. Gather information on all assets, liabilities, income, spending, savings, and expenses. This comprehensive overview will serve as the foundation for your financial plan, providing a clear understanding of your financial landscape. You want to begin on the right track and if you need help, a financial planner can help you get started!

What did you accomplish last year? What do you want to accomplish this year? Your financial objectives for the year could involve safeguarding your assets, expanding your #investments, or reducing tax liabilities. Alternatively, they might include embarking on a significant family vacation, achieving retirement at a specific age, or accumulating funds for a home renovation.

In reflecting on the past year and looking forward to the next, it can help to think about what will stop, what will be new (start), and what will stay the same (continue).  This helps us anticipate potential changes in your finances and adjustments we might need to make in your planning.

Take a close look at your investment portfolio. Streamline and simplify where needed, ensuring alignment with your risk tolerance and financial goals. Diversify investments across different asset classes to mitigate #risk and capitalize on opportunities in the market.

I like to start by using a client’s net worth report to help gather documents for tax prep. Then you can collaborate with tax professionals to assess your current tax position and identify opportunities for optimization. Moving forward you can explore tax-efficient investment strategies, take advantage of available deductions, and plan for any changes in tax regulations that may impact your financial situation.

In preparation for the upcoming year, it is essential to reflect on your philanthropic goals and strategically plan your charitable contributions. By evaluating your commitment to making a positive impact, you can ensure that your giving aligns with your values and desired outcomes. Additionally, consider the establishment of a donor-advised fund to facilitate a structured approach to your charitable contributions. This approach not only provides a streamlined mechanism for managing your philanthropy but also allows for thoughtful consideration of the organizations and causes you wish to support.

As you approach the new year, take the opportunity to reevaluate your retirement goals and assess the adequacy of your contributions to retirement accounts. A careful examination of your retirement strategy ensures that it remains aligned with your evolving financial objectives. Furthermore, consider exploring tax-advantaged retirement savings strategies to maximize the efficiency of your contributions. This proactive approach to retirement planning not only helps secure your financial future but also takes advantage of potential tax benefits, optimizing your overall retirement savings strategy.

Getting organized financially for the new year involves taking proactive steps toward creating a solid foundation for your wealth management journey. Actively engage with your #financialplanner, fostering open communication to ensure your strategy remains adaptable to evolving financial landscapes. Cheers to a well-organized and prosperous new year!