The start of a new year is the perfect time to pause and take stock of your financial life.
Whether you’re setting new goals or revisiting existing ones, it’s easy to get caught up in day-to-day routines and let months (or even years) pass without a true financial checkup. Now that the holidays are behind us and we’re looking ahead, this is a great moment to ask yourself three key questions to make sure your actions align with your financial goals. If they don’t, you still have time on your side to make meaningful changes.
1. What am I investing for?
Every investment should have a purpose. Are you saving for retirement, a major purchase, college funding, or simply building long-term wealth? Your goal determines your timeline, risk tolerance, and an appropriate investment mix. It’s important to know the intended purpose for each "bucket” of money, so you can match the right strategy to the right goal. Clarity here can help ensure your investments are working toward what matters most to you.
2. How much risk can I realistically handle?
Risk tolerance isn’t just about emotions; it’s also about your financial capacity and time horizon. Ask yourself: How would I feel if my portfolio dropped by 10%, 20%, or more? For money you’ll need in the next 5–10 years, the appropriate level of risk is very different than for funds earmarked for retirement decades away. Market volatility feels much different when the timeline is short. An honest assessment of your risk tolerance, and how your current allocation aligns with it, can help you avoid surprises and stay on track.
3. How does each account fit into my bigger picture?
Most of us have money spread across different accounts, like checking, savings, retirement plans, investment accounts. But how do they all work together? Do you have an emergency fund? Are you paying down high-interestdebt before investing heavily? Are you improving tax-advantaged accounts? Investing without a coordinated financial plan can lead to gaps and missed opportunities. Understanding how each piece fits into your overall strategy is key to building towards your long-term goals.
Why These Questions Matter
Answering these questions can bring clarity and more confidence to your financial decisions. A comprehensive financial plan can help you see the big picture, prioritize goals, and make sure your investments are aligned with your life and the goals that are important to you.
Together, we can work to keep you on-track toward your financial goals.
Request a consultation to learn more.
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