New Year, New Financial Goals
As we look to a new year ahead, many of us reflect on our accomplishments from the current year. Your financial plan isn’t immune to such reflection and now is a great time to review your plan and set new goals for the future.
By reviewing your financial plan at the end of each year, you’ll see if you’re on track to meet your goals and how your current financial situation will impact your tax filing. This will allow you to make strategic decisions for the future, such as contributing more to retirement accounts, gifting to family or charities, opening education savings accounts, adjusting your healthcare enrollment and more.
How to Review Your Financial Plan Each Year
First off, if you don’t have a financial plan, now is a great time to put one in place! According to Gallup, only 30% of Americans have a long-term financial plan. If you’re not sure where to get started, meeting with a financial advisor is a great first step. You can also take FNBO’s Financial Journey questionnaire—after answering a few short questions we’ll provide you with a free personalized report to help you determine your goals.
If you already have a financial plan—that’s great! When you review it annually, it’s key to remember that each part of your plan can impact another. Here are a few key elements that should be included in your financial plan and reviewed each year:
- Budget – When looking back at the year, was your budget realistic or were changes made for additional expenses? Look to see if any of your regular expenses will change next year and adjust your budget accordingly.
- Retirement Accounts & Investments – Are your investments meeting your goals? Consider if you have had any changes in risk tolerance or liquidity needs. Talk with your financial advisor to see if your portfolio needs to be rebalanced to accommodate any changes or new goals.
- Taxes – Will your tax situation change next year due to changes in income? A financial advisor can help you determine if you should make any changes to try to minimize your tax burden.
- Evaluate Risks – See if your plan has any gaps that may put your finances at risk. Be sure to evaluate how much you have saved for a rainy day. Do you have enough savings to cover a few months of expenses if something unexpected happened? It’s also important to review your current medical and life insurance policies to make sure you and your family are covered. In addition, be sure to consider if your estate documents are up to date.
Setting Realistic Financial Goals
Many of us look forward to the new year with aspirations in mind. You may want to travel more, grow your family, remodel your home or invest in your child’s education. No matter what you want to achieve, it’s important to set realistic goals and include them in your financial plan.
As with any goal, it’s key to remember that things take time to accomplish. Start small and be patient as you progress. For example, setting a goal of growing your savings account from $100 to $100,000 in a year may not be realistic. However, having a goal to set aside a certain amount of each paycheck into your savings account is realistic and you will see your progress. Your financial advisor can help you set goals that are realistic and give you suggestions for how to best get there.
How a Financial Advisor Can Help
Meeting with a professional at least annually is a great way to gauge if you’re on track to meet your goals. An advisor has the knowledge and resources to help you holistically review your financial plan and set new goals based on what you hope to achieve. Another bonus is that an advisor can help keep track of your progress for you!
FNBO is here to help whether you’re putting together new financial goals or ready to meet with an advisor. Take our financial journey questionnaire to be provided with a personalized financial report or find an advisor today.
"FNBO Wealth" is a brand name that refers to First National Bank of Omaha ("FNBO") and certain of its affiliates and subsidiaries that provide or make available trust, investment, securities brokerage, investment advisory, banking, and related services.
Trust and related services are provided by FNBO, a national bank with trust powers.
Certain trust and related services are also provided by FNN Trust Company, a South Dakota state-chartered trust company and wholly-owned subsidiary of FNBO. FNN Trust Company does not offer depository, lending, or other banking products, and is not FDIC insured.
"First Investments & Planning" refers to a division of FNBO that makes available third-party brokerage and investment advisory products and related services on bank premises. Brokerage services are offered through Raymond James Financial Services, Inc. ("RJFS"), a registered broker-dealer. Member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. ("RJFSA"), a registered investment adviser. Insurance products are offered through RJFS, Raymond James Insurance Group, Inc. ("RJIG"), and their affiliates. Registered representatives of RJFS and investment adviser representatives of RJFSA offer products and services using the name First Investments & Planning and may also be employees of FNBO. These products and services are being offered through RJFS, RJFSA, RJIG, or their affiliates, which are separate entities from, and not affiliated with, FNBO or any of its subsidiaries or affiliates. FNBO is not registered as a broker-dealer or investment adviser.
Certain investment advisory services are provided by First National Advisers, LLC ("FNA"), with certain services provided through FNA doing business as Private Wealth Reserve, an SEC-registered investment adviser and wholly-owned subsidiary of FNBO. FNBO is not a registered investment adviser.
Deposit products, such as checking, savings, and money market accounts, and lending, credit, and related products are offered by FNBO. Member FDIC. Equal Housing Lender.
Only deposit products are FDIC insured.
INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, FNBO OR ANY OF ITS SUBSIDIARIES OR AFFILIATES • MAY LOSE VALUE
FNBO, its affiliates, and subsidiaries do not provide legal or tax advice.