Plan today for a successful future

Top tips from Robert DeHollander, Certified Financial Planner professional

Happy New Year everyone! I hope your new year is off to a great start. From time to time, it’s a good idea to step back and look at your big picture. January is a perfect time to do this. If you’re thinking about your financial future, here are five steps to consider:

Update your plan. Confirming you’re still on track to reach your financial goals is a great exercise. This is true both numerically and emotionally. Remember that the algorithms in modern financial planning software account for periodic market declines. They’re inevitable after all. As a result, the longterm success of your financial goals is probably impacted less by the occasional bad year in the markets than you might expect. Updating your financial plan can confirm this and provide peace of mind that you’re still on track to reach your goals.
Review your portfolio. Everyone knows last year was turbulent for the stock and bond markets. It tested the mettle of even the most seasoned investors. How about you? Did you stay the course, panic or something in between? Review your current investments and evaluate what you did right and wrong last year. Confirm your investments are still in line with your long-term goals and risk tolerance. Also remember to update your investment policy statement. And if you don’t have a personal IPS, meet with your financial advisor and write one! A properly written IPS will help you navigate the next market downturn with intentionality, less anxiety and more confidence.
Review your estate-planning documents. Ensure your estate plan stays in tune with your goals and needs; you should review and update it on an ongoing basis to account for any life changes or other circumstances. Update beneficiary designations. Take a fresh look at trustee and agent appointments. Review provisions of powers of attorney and health care directives and ensure you fully understand all of your documents.
Check your credit report. It’s important to monitor your credit report regularly for suspicious activity that could indicate identity theft. Federal law requires each of the nationwide credit reporting companies (Equifax, Experian and TransUnion) provide you with a free copy of your report every 12 months.
Get professional advice. If you just need a little help or if you want a second opinion, call a professional. Consider reaching out to a Certified Financial Planner professional for a professional review of your unique planning concerns.

Finally, remember this is a process — don’t feel like you have to do everything at once. I personally believe we’re entering a period of lower returns and higher volatility in the markets. If this is true, we’ll all need to be more intentional with our financial plans moving forward. Stay focused on your long-term goals and work your plan!

Robert DeHollander, CFP