As 2014 has come to a close, it’s time to start thinking about how to make 2015 a success for you and your loved ones. Though there’s little consensus about their origins, we know that Americans have been making New Year’s resolutions since at least the 1770s. In 2013, 54 percent of Americans made resolutions about their finances.
Here are 10 financial resolutions to help make 2015 happy, and successful:
- Set Aside Emergency Savings
Emergencies are unpredictable, and a serious illness or sudden financial need can derail your finances. Prepare for unpredictable expenses by putting aside six to eight months of expenses in an easily accessible cash-equivalent account.
- Make a Spending Plan and Stick To It
It may sound like a lot of unnecessary work, especially if you’re financially comfortable, but it’s quite easy to let your spending go off the rails if you’re not tracking it in some way.
- Make Retirement Plan Contributions Regularly
We believe that “time in the market” is critical to long-term investing success. Instead of waiting until the last minute to make your annual contributions, give your money more time to grow by making automatic contributions to your accounts every month.
- Maximize Your Retirement Plan Contributions
Tax-managed retirement accounts are one of the most powerful tools in your financial arsenal. Make the most of them by contributing as much as you can each tax year. We usually recommend maxing out employer-sponsored plans first in order to take advantage of any matching contributions your employer may offer.
- Pay Down Debt, Especially High-Interest Credit Card Debt
High-interest debt can make it very hard to get ahead financially. If you’re carrying significant debt, make it a priority to pay down the debt and get out from underneath high interest payments.
- Set Goals for the Future and Work with a Professional to Create Strategies to Help You Work Toward Them
In our experience, people who set goals for themselves and create strategies to pursue them are much more likely to see success. One study found that investors who leveraged specific financial strategies saw greater long-term financial success.[iii] Sit down with your loved ones to discuss your financial goals.
- Review Your Estate Planning and Legal Documents
Your core legal documents should be reviewed regularly to make sure that they keep up with your life. If it’s been a few years since you took a look at your documents, dust them off and make sure that they still represent your wishes.
- Review the Beneficiaries of Your Financial Accounts and Insurance Policies
Most Americans have a significant number of financial accounts that they have accumulated over the course of their life. Take the time to gather up your account documents and make sure that the beneficiary information is still current; remember, beneficiary provisions are independent of your will or other estate provisions.
- Protect Your Credit
Identity theft and financial fraud are serious threats that can compromise your financial wellbeing. Protect yourself by reviewing financial statements and bills carefully for unauthorized activity. Check your credit report for free at www.annualcreditreport.com.
- Review Your Tax Strategies for Potential Savings
Recent changes to tax laws mean that you may be paying too much in taxes this year.
Footnotes, disclosures, and sources:
We have not independently verified the information available through the following links. The links are provided to you as a matter of interest. We make no claim as to their accuracy or reliability.
Securities offered through Geneos Wealth Management, advisory services offered through Ascendant Financial Solutions and Geneos Wealth Management Inc. Member FINRA/SIPC
[i] http://articles.courant.com/2013-11-19/community/hcrs-82240-wethersfield-20131115_1_christmas-open-house-christmas-traditions-santa-claus
[ii] https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/new-years-resolutions.pdf
[iii] http://corporate.morningstar.com/ib/documents/PublishedResearch/AlphaBetaandNowGamma.pdf
By James D. Hoyt
With today’s volatile stock market and changing tax laws, many people would like to have a second opinion to make sure that they’re on track to achieving their financial goals. We don’t engage clients unless we can add substantial value to their financial lives. At the conclusion of our second opinion of service, you will have greater peace of mind and a written road map for any recommended changes. James D. Hoyt is a private wealth manager and the Founder/CEO of Ascendant Financial Solutions, Inc. www.ascendant-financial.com Securities and Advisory Services offered through Geneos Wealth Management, Inc. Member FINRA/SIPC. Advisory Services offered through Ascendant Financial Solutions.
