The new year is a time of transition--a moment of looking back while at the same time looking forward. It’s a good time to set personal intentions for the year. It’s also a good time to set some financial goals.
Financial goals are key to a healthy and happy new year, every year. Whether your goal is fitness, volunteering, or learning a new skill--finances affect everything you might consider as a New Year’s resolution for 2020.
When you work with a financial advisor to put a retirement plan in place, you can rest assured knowing the major goals are covered. So you can feel at peace and ready to tackle the smaller goals, like losing that five pounds. Not to mention, you’ll know where they fit into the larger vision.
Consider dedicating 2020 to the year of financial wellness.
When it comes to Denver retirement planning and all that goes with it, how can you set financial goals you'll want to keep in 2020?
Personalize Your Goals
Even more important than what you want, is why you want it and how you'll feel when you get it. The reasons behind your desire to buy a house, start a business, or retire early are what really matters. Because those reasons are what drives you to work hard on your financial goals.
So ask yourself, what are the motivations behind your biggest financial dreams and goals? Maybe you want to:
- Spend more time with family
- Create a space for everyone to gather
- Enjoy your retirement years in a beautiful setting
- Leave behind a legacy for your children and grandchildren
Beyond setting financial goals that matter, it’s important to find a financial advisor who understands your goals, motivations, and desires. Using this knowledge, combined with your financial history, a financial advisor can create a customized plan you’ll want to carry out.
Set Realistic Expectations
If your New Year’s resolutions involve quitting sugar cold turkey or hitting the gym seven days a week, we wish you luck. Extreme resolutions like these are easy to break. With your finances, it's no different. Trying to pay off your mortgage in 5 years may be tough to swing--but putting aside money for retirement each month is an attainable goal.
The most attainable goals are those that can be broken down into smaller action steps. For example:
- Set yourself up for success by getting to know your financial situation - only with an accurate budget can you set realistic savings goals
- Build in a little wiggle room in your budget - so you don’t have to beat yourself up over those “human” moments
- Focus on getting out of debt so that you can reduce the amount you pay in interest. Bonus perk:you can put the money you'd otherwise apply toward debt payments somewhere else.
Find an “Accountability Team”
Your financial goals will begin to feel more real if you say them out loud or share them with someone. Share your financial goals (as well as your personal motivations) with your spouse or other family members so they can help you achieve them! They’ll serve as both a support system and an accountability team.
An accountability support team pushes you to achieve your short and long-term financial goals through the social pressure of not wanting to let anyone down. They should also offer you encouragement and support by checking in on your progress over time.
A fiduciary financial planner in Denver, or wherever you live, may also act as part of your account team. A fiduciary has your best interests in mind, you can trust them, and it will help you follow through on the financial goals that matter most to you. For example, when you work with Wealth Legacy Institute in Denver, a financial advisor will meet with you several times per year to make sure you’re following through on action points from your personal retirement plan.
It’s easy to say, “I’ll start investing next year,” “When I get my new job,” or “When the time is right.” We’re here to tell you, the best time to start investing is right now. You should be saving at least 10% of your income each month. This money will add up quickly thanks to compounding interest.
It is very easy to tell yourself that you will be better or more ready in the future. The truth is that most people are the cumulative effect of daily or regular habits. In other words, you are what you do. You have to make saving something you do as a habit, and you need to start now.
Retirement planning can seem tedious, overwhelming, or even scary. Perhaps you’ve been burned in the past. Maybe you are afraid of what you might learn. We get it. However, your feelings do not change the fact that your retirement is coming, whether you’re ready or not. If a comfortable retirement is a goal of yours, you need to plan and fund it now.
And when that day comes, you’ll be glad you prepared.
Don’t let fear or uncertainty get in the way of your wealth management. Make this the year you take control of your future and start planning for the retirement you want:
- Make a goal to save or invest a certain amount each month
- Open at least one retirement investment account such as an IRA or a 401(k)
- See if you can increase your monthly contributions in 2020
- Work with a fiduciary financial advisor to set short and long-term financial goals
Time is passing whether you’re ready or not. The sooner you start planning for your future, the better. If you’re looking for a Denver investment advisor you can trust, be sure you look for a fiduciary financial advisor. The CERTIFIED FINANCIAL PLANNERS™️ (CFP®️) at Wealth Legacy Institute can help you create a retirement investment plan that fits both your current financial situation and your financial goals.