As we step into the new year, it's a great time to reflect on our financials and set smart financial and investing resolutions for 2024. You don’t need to be a seasoned investor to establish clear financial goals that can help to pave the way for your financial future. Let’s start with some basics:
1. Define Clear Objectives:
Begin by defining your financial objectives. It sounds simple and it is. You need to know where you’re headed so you can better understand how to get there. Are you saving for a home, planning for retirement, saving for college, or looking to grow your wealth? Clear objectives can help offer direction that you and your financial advisor can use to tailor your investment strategy to meet specific goals.
2. Assess and Adjust Risk Tolerance:
Everyone has a different level of risk they are comfortable tolerating in their portfolios. Risk tolerance is informed by a variety of factors, including investing goals, length of time until the funds will be accessed, age, and market conditions. Your financial advisor should work with you to assess your risk tolerance periodically, especially if there have been changes in your financial situation or life circumstances. Adjusting your risk profile regularly can help ensure that your investments align with your comfort level and financial goals.
3. Regularly Review and Rebalance:
Markets evolve, and so should your portfolio. Regularly review your investments with your advisor to ensure they continue to align with your goals, your risk tolerance, market fluctuations, and your personal circumstances. Rebalancing can help maintain your intended asset allocations.
4. Stay Informed:
While you don’t have to eat, sleep, and breathe the markets (that’s your advisor’s job!), it is helpful to be aware of market trends, economic indicators, and global events. Knowledge is a powerful tool in making informed investment decisions. Consider following reputable financial news sources online, through podcasts, and on television. I happen to like Bloomberg, the Wall Street Journal, and CNBC but there are plenty of reputable sources out there. Many even offer a daily digest email option that breaks down the basics. Most importantly, make sure you’re in regular contact with your financial advisor about markets and how you are tracking against your financial objectives.
Setting smart investing resolutions is a proactive approach to managing your financial well-being. As you embark on the journey of 2024, these are some resolutions than can help guide you toward making informed decisions, adapting to market changes, and ultimately achieving your financial objectives.
Need some help getting started? You can schedule a consultation with a Beirne advisor here.