Five financial resolutions to make 2021 best year
The fresh new year is a great time to reassess your goals, your strengths (and weaknesses), and to focus on you and your family’s wellness — physical, mental and financial.
Whether you’re just starting to think about your finances or you’ve taken great strides in preparing, financial planning is an ongoing undertaking that must be nurtured at every stage.
Whether you’re trying to break old habits or improve your financial health (and wealth), these five simple ideas can help you get the ball rolling toward a brighter 2021.
Be more charitable
• Determine how (and if) you want to leave a charitable legacy and include it in your estate plan.
• Charities and non-profits are great beneficiaries for taxable retirement accounts since they don’t pay any tax!
• Vote with your dollars.
Get organized
• Develop or update your estate plan.
• Implement a simple filing system and stick to it each month.
• Track your spending and develop a legitimate budget.
Save more, trim the fat
• Know what you’re spending (look at the scary numbers) and ask yourself where you are overspending (Coffee? Takeout? Shoes?).
• Cut frivolous spending and outdated online subscriptions.
• Try dedicating these “extra” funds to an automated savings account.
Prepare for unexpected
• Protect your assets from market risk by diversifying your portfolio across banks, financial markets and insurance companies.
• Make sure your financial plan accounts for things such as inflation and rising healthcare costs.
• Limit your personal liability using inexpensive umbrella coverage.
Get educated
• Consult a legal professional about the difference between a will versus a trust and determine what type of estate plan best suits your needs.
• Consult with a financial professional to learn what tools are available to minimize your taxes and optimize your wealth and spending.
It just takes one small step to get started, and you’ll be on your way to making your New Year’s financial resolution a success. Wishing you a bountiful 2021!
Yovonne Marsh is a financial advisor whose columns appear regularly in the Business section of farragutpress.Financial Planning & Investment Advisory Services are offered through Marsh Wealth Management, LLC (“MWM”), an independent investment advisor registered with the state of Tennessee. Marsh is an investment advisor representative of MWM in Tennessee. Marsh Professional Group, LLC, is a Tennessee registered public accounting firm and a separate legal entity from MWM. For a detailed discussion of MWM and its investment advisory fees, see the firm’s Form ADV on file with SEC at www.adviserinfo.sec.gov.
