Planning & Executing Financial Resolutions for the New Year

from January 2019

How goal setting can help you begin a fitness regime

By Barb Sieminsk i

Let 2019 be the year that you get your finances in order with a New Year ’s resolution to make that goal a realit y!

Creating good habits for financial health is an excellent star t Here are some that you’ve hopefully been cultivating all along:

• Monitor your credit repor t: If you have an outstanding credit card debt with a high interest rate, that should be paid off first The wisest course is to sell any CDs, savings bonds or other cash holdings to pay down your debt

• Pay bills right after payday

• Make and stick to a realistic budget.

• Open an Individual Retirement Account (IRA) and star t mak ing contributions to it. You might also enroll in an automatic savings plan, which could be anywhere from brokerage accounts to bonds and close unnecessar y accounts

Financial planning includes ever ything from reviewing your mor tgage and car loans for debt reduc tion to monitoring your investment por tfo- lio’s allocation. I t can also mean guidance on choosing group benefits, exercising stock options or determining your 401K investments.

We’ve enlisted the help of Lisa Waterman, CFP®, President of Waterman Financial Ser vices LLC, who is registered with Royal Alliance Associates to offer securities and advisor y ser vices (member FINRA/SIPC), who agreed to share her information with glo:

• Will you work alone with financial software or with a professional? Waterman suggested seek ing advice from a Cer tified Financial Planner (CFP®): “Please note that a financial advisor who promises to help with planning is NOT the same as work ing with a CFP® who is k nowledgeable in crafting financial plans, and if work ing on your own with financial planning software, check the reviews given by users of the software Work ing with financial software can be difficult if you do not understand what is being asked or the data output ”

• Gather your documents and financial information together so the planner has a clear, current pic ture of your situation: bank statements, investment accounts, annuity records, insurance records, tax returns, insurance records, loan and mor tgage documents, et al

• Where do you feel the focus should be in your financial life? There is not a correc t answer that works for ever yone, but freedom from or having reasonable debt in conjunc tion with a systematic savings/investment program will lead to financial success Fur ther, ever yone should have three to six months of income saved to cover periods of disability or job loss.

• Create a written financial plan and regularly review it to stay on course, mak ing changes as your situation changes A great financial plan lives life with you and reflec ts your future hopes, said Waterman who suggested look ing for a financial planner with a CFP® designation and one who LISTENS to you

Keep these simple tips in mind and be ready to create a dynamic New Year ’s resolution that will last throughout the year! a