I have always found the end of the year to be an opportunity for reflection. As a financial advisor, I, of course, encourage my clients to review their financial plan. Some people wish they had saved and invested more during the past year. In fact, I see clients in mid-life who worry that they won’t have enough assets to support their retirement. And, to be honest, many of them don’t.
In a perfect world, you would have made some wise investments when you were in your 20s. Then, you could build on those investments and have a vast portfolio well before you hit 50. The world isn’t perfect, though, and the financial mistakes of the past can be overcome with savvy financial planning and analysis.
Here are some steps you can take to jump-start a personal planning process and build a secure future:
Review Your Personal Budget
There is a common misunderstanding about budgeting. Most people, eager to discuss investments and savings plans, are hard-pressed to consider budgeting as a tool for building assets and security. A budget is a financial plan for spending that can be a valuable tool. By managing expenses, you free up money for saving and investing.
Commit to Personal Financial Planning
Personal financial planning is the most basic building block for building wealth. Too many individuals focus on their earning power and neglect the development of assets. Long-term investment and saving plans are what you will rely on to support a comfortable lifestyle in retirement.
A solid financial plan should focus on your individual needs and situation as well as your goals for retirement. Monitoring your finances can help ensure your plan is up-to-date and that you can use it to successfully meet your current goals and objectives.
Get Help From an Independent Financial Advisor
There is no such thing as getting rich quick.Wealth building takes years and years, but it is not too late to begin. Start with an independent financial advisor who can help you determine how much you should invest to be ready for retirement. Your planner will also go over passive and active investment strategies. That way, you can have sustained growth with passive investments and some rapid expansion with active investments. The two will balance out and provide you with excellent growth from one year to the next.
The best financial advisors are trusted allies who can facilitate putting a sound financial plan in place today for a more financially secure tomorrow.
Material discussed is meant for general illustration and/or informational purposes only, and it is not to be construed as investment, tax, or legal advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.