The song “Auld Lang Syne” is derived from a famous Scot’s poem which is played with the start of every New Year. The title may be translated into English literally as “for the sake of old times.” While old times and good friends should not be forgotten, neither should your own financial resolutions.
When hearing this song at the stroke of midnight, many of us may reflect on where we stand with our job, life, health, money, retirement, family and relationships. Maybe there is something to be said about urgency of the clock counting down and the calendar turning over to the next year.
The items that top most New Year’s resolution lists are typically led by eliminating bad habits to possibly starting new endeavors. We all know the usual suspects: stop smoking, drink less, lose weight, watch less TV, be less stressed, stop overspending, pay off credit cards, reduce clutter, reduce taxes, get a better job, join a gym, read more, start a new career or hobby and take a vacation appear on many lists.
The fact that most financial resolutions check-lists have very limited financial “to-do’s,” should not come as a surprise. A past study by Allianz Life found that 84% of adults left financial planning off their list entirely. Surprisingly they say they don’t make enough money to worry about it. Financial health is the 800 pound gorilla in the room that most of us just shuffle under the carpet despite knowing we need to make some changes.
A goal is a dream with a plan. Just like losing weight, getting your financial life and investments up to snuff takes time, patience and hard work. No pain, no gain. Failure to plan is planning to fail. Do not expect to just cruise through life and assume that your goals will be met for a 30 plus year retirement. As our firm works with many retirees, we can truly tell you that planning does not stop even in retirement.
The top of the year is a great time to consider retaining an accredited financial professional such as a CERTIFIED FINANCIAL PLANNER™ (CFP®) to develop an “actionable” financial game-plan to help improve your financial health, wellness and sustainability. We wish you a happy, healthy and prosperous 2014 and hope we may have provided you some personal motivation to write down your financial goals and work your plan throughout the year
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.