Financial Planning

The new year is an exciting time— a time for a change, fresh starts, new beginnings, and different adventures.

We have not only entered a new year but also a new decade, and with it comes rejuvenated energy to set off on the right track and reach your goals. January is a great time to review your finances and decide on your top 3 financial resolutions.

What financial goals and resolutions are you hoping to accomplish this year?

One way to help you stick with your financial resolutions this year is by teaming up with a financial planner to help you stay the course and motivate you to reach the goals you set.

Financial Resolution #1: Review your portfolio.

Your investment portfolio is an essential component of your financial plan. You might be self-managing your investment portfolio and are ready to delegate the day-to-day research and rebalancing. You might realize your current financial advisor doesn’t serve your needs. Now is the time for a strong financial resolution to get a fresh set of eyes. Active portfolio management will help balance risk and divide assets in a way that makes sense for your investing goals.

This year, be sure to take the time and have your portfolio reviewed by a professional. A fee-only financial advisor can help you reassess your goals as an investor and maximize your investment portfolio to meet those goals. A financial advisor will be able to help you:

 Assess your risk.

• Your portfolio’s risk should align with your investment goals and timeline. Reexamining these factors will influence the type of assets you will invest in moving forward.

• Your risk tolerance plays a big role in your investment strategy and will change as your goals evolve. As you near retirement, it is especially important to evaluate your risk tolerance and how it corresponds to your division of assets. Since you will need the money over a shorter time horizon, it might make sense to re-balance your assets accordingly.

Re-balance your portfolio.

• Asset classes grow at different rates of return. As a result, it is necessary to periodically re-balance your portfolio to maintain your target asset allocation mix.

Avoid excessive fees.

• You might be paying way more than you have to for management fees, commissions, and hidden fees. It might be time to switch to a fee-only fiduciary.

• You might be paying more than you have to on advisory, management, and other related costs. Check your service level and affinity with your current advisor. Are you getting what you are paying for?

 Financial Resolution #2: Know your priorities.

What is most important to you? Where to you want to invest your most valuable asset–your time? Your finances should align with your values and priorities. Are you living your best life? The best way to find out is with a comprehensive financial plan.

A comprehensive financial plan takes into account your financial goals, responsibilities, aspirations, and resources. Chose a scenario that will best suit your short-term and long-term goals.

Here at Platt Wealth Management, we have a 4 step approach.

 Discover. We want to learn about your financial goals and the pain points you have experienced along the way. What keeps you up at night? We seek to know your passions and values. What do you dream about doing?

Create. We create a custom financial plan that illustrates both where you are now and where you want to be in the future.

Execution. After you choose the plan that works for you, we ensure it gets implemented. We also provide the tools and resources (professional and educational) you will need to be successful.

Monitor. The one predictable thing about life is that it is always changing. We stay engaged through proactive planning to keep you on course.

 #1 Financial Resolution: Protect your assets.

You have worked hard for everything you have earned throughout your career. An essential financial resolution is to protect those assets. Entrepreneurs need to be especially aware of protecting their assets. This year, make it a priority to put designations in place to help protect yourself. Below are a few suggestions to get you started:

• Separate your business and personal finances.
• Create a legal structure for your business (corporations and LLCs provide a corporate shield of asset protection).
• Have updated insurance for all of your assets (house, car, business, etc.).
• Diversify where you can. For example, you could put some assets in a trust to help protect them as they are managed from a third-party.
• Use your retirement accounts. These accounts (401k, 403b, IRA) protect your assets from creditors.

Here at Platt Wealth Management, we are passionate about helping you live the life you want. Schedule a call with us. We would love to help you establish and achieve your financial resolutions this year.

Use the buddy system to maximize your financial health and complete your financial resolutions.

 Your best-interest should be at the heart of your financial advisor. As a fee-only fiduciary firm, we work our best every day to help you reach your goals. Creating a dynamic of trust and transparency is crucial to who we are as a financial advisor, and we want to help you get into top financial shape.

Platt Wealth Management offers financial plans to answer your important financial questions. Where are you? Where do you want to be? How can you get there? Our four-step financial planning process is designed to be a road map to get you where you want to go while providing flexibility to adapt to changes along the route. We offer stand alone plans or full wealth management plans that include our investment management services. Give us a call today to set up a complimentary review. 619-255-9554.