PREPARING FOR 2023

Preparing for

Before we know it, the holidays will be behind us and we will be gearing up for the new year with the pressure being on for New

Year’s resolutions! Preparing for the new year is a great time to set new goals and check in on your progress towards existing goals.We encourage you to think about your financial goals during this process.

It is not a bad idea to periodically revisit your personal finances and financial objectives.

HERE ARE A FEW SUGGESTIONS:

 CREATE A BUDGET. There are many different financial planning programs available today to help you create a budget as well as an overall financial plan. These platforms range from simple calculators to complex, comprehensive platforms your financial advisor may utilize that can automatically update balances daily. Why are there so many tools? Because this is such an important yet neglected task. Make 2022 the year you tackle your budget.  ESTABLISH AN EMERGENCY FUND. As part of your overall financial plan, you will be asked to establish an emergency fund. It is recommended that you have at least three months’ worth of living expenses sitting in a money market. If you are self-employed or have an erratic income, you should have six to nine months set aside. Don’t let lessons from the pandemic go to waste! Make sure you have rigor around your emergency fund.  REVIEW YOUR RETIREMENT PLAN CONTRIBUTIONS. If you are fortunate enough to have a retirement plan offered where you work, make sure you are making the most of it! Many people only save enough to get their employer’s matching contribution if there is one. Instead, recognize that the real power in these plans is your ability to save for your own retirement on a tax-advantaged basis. Although the maximum amount you can save will vary by the type of retirement plan you are in, for 2022 participants in a traditional 401(k) plan can defer up to $20,500 into their account. Age 50 or over? In 2022 you are allowed to defer an additional $6,500 into your 401(k). Pay yourself first!

 TAKE CONTROL OF DEBT. We tell our clients that there is “good” debt and “bad” debt. Good debt pertains to money borrowed on an appreciating asset. Bad debt is money borrowed on a depreciating asset. In general, a mortgage on your home is hopefully “good” debt while financing a new car is often “bad” debt. Starting with the new year, pledge to work to reduce your debt and start with bad debt first.  REBALANCE! With the bear market you may find that your portfolio is no longer allocated in a manner that reflects your risk tolerance. This is a good time to meet with your financial advisor to review proper asset allocation.  REVIEW YOUR ESTATE PLAN. Think that estate plans are only for the wealthy? Think again. Whether a simple Will or a Living Trust with a Pour-over Will, if you are reading this article, you need an estate plan. Consult a qualified estate planning attorney yet this quarter. If you have not revisited your estate plan in over five years, it’s time to do so. Include verifying your named beneficiaries in this exercise.  CHECK YOUR CREDIT REPORT. It’s not just markets that have been on the rise. Phishing attacks, ransomware payouts, and supply chain attacks are all up significantly year to date. Your best defense is to monitor your accounts regularly and to periodically check your credit report. If something doesn’t look correct, the faster you react, the better off you should be.  REVIEW YOUR INSURANCE COVERAGE. Insurance companies are constantly reviewing and evaluating risk. With the pandemic as well as the increase in extreme weather events, life insurance companies as well as property-and-casualty companies may be adjusting their charges for risk, adjusting coverage parameters, or both. Review your policies with your agents to make sure you have the right coverage for your needs. If you are like us, you probably feel that each year passes more quickly than the last. Before 2023 takes off at an even faster pace than 2022 did, take a moment and work though the list above. Your future-self will thank you!

Investinginvolvesriskandyou mayincura profitorlossregardlessofstrategyselected. Diversificationandassetallocationdoesnot ensure a profitorprotectagainsta loss. Holdinginvestments forthelongtermdoesnot ensure a profitableoutcome.Future investmentperformance cannot be guaranteed,andinvestmentyieldswillfluctuate withmarketconditions.The informationcontainedinthisreport doesnot purporttobe a complete descriptionofthesecurities,markets,ordevelopments referredtointhis material.The informationhasbeenobtainedfromsources consideredtobereliable,but wedonot guaranteethat theforegoingmaterialisaccurate or complete.Any opinions are thoseofTom McCartney andnot necessarilythoseofRaymondJames.Expressions ofopinionare as of thisdateandare subjecttochangewithoutnotice.

 Tom McCartney istheFoundingPrincipalof MyAdvisor& Planner anda Wealth Manager. SecuritiesandInvestment Advisory ServicesOffered ThroughRaymond James Financial Services, a RegisteredBroker/Dealerand Investment Adviser, Member FINRA/SIPC.MyAdvisor & Planner is independentlyowned andoperated. Tom andhisteam can be reachedat info@ mapyourfuture.net,at 630-457-4068,oryou can visit themat www.mapyourfuture.net.