As we move towards the end of yet another year and think about how fast the last 12 months have come and gone, many of us find ourselves thinking about the future and how quickly retirement will be on our doorstep.
Let’s face it, we’ve worked hard throughout the year and now is the time to reflect on what we have achieved; where we want to be; and what we need to put in place to get there. These times of reflection are critical to our lives whether we run our own business or are employed.
A financial review is an excellent way to see how you are progressing towards your goals and to help identify any specific areas you might need to focus or require assistance with.
Key issues to consider
Do you have your debts under control?
Whether it be a mortgage, personal loan, credit cards, or other debts, is it time to revisit your progress? Are you able to increase your payment amounts or frequency to save interest? With interest rates on the move, should you investigate refinancing or locking in at a fixed rate?
Consolidating debts and managing your finances more effectively could help reduce debt, build equity and increase savings more rapidly.
Cashflow management
How much money did you save this past year? Are you spending first and saving what’s left? If your savings aren’t as healthy as you would like, remember to pay yourself first by allocating up to 10% of your income to a regular savings plan. Implementing a cash flow system in place will help you achieve financial goals in a structured way.
Retirement Plans
The number one thing that people worry about in retirement is running out of money, do you know how much income you will need to maintain your current lifestyle in retirement? A financial review with a retirement specialist can help you put plans in place to ensure you can make smarter financial decisions with your money.
Superannuation
What is the current value of your super? If you don’t know, now is a good time to check. Is it working as hard as it should be? Are the fees reasonable? How is it invested, and are you on track to meeting your retirement needs, or should you start making extra contributions?
Risk Mitigation
When illness or accidents strike, most people are caught insufficiently protected. It’s important to regularly review your insurance policies to ensure that you and your family have adequate cover. When was the last time you reviewed your insurance cover?
Estate planning
Making a Will itself is not particularly difficult or even terribly expensive. It is a fact of life that people get married, have children, change relationships, get divorced or establish new interests. Left unaddressed, any of these may result in a Will being legally challenged. Estate planning matters such as Powers of Attorney and Medical Directives should be regularly reviewed in addition to your Will.
You don’t have to wait until the first day of January to review your financial situation … do it today, and you may find that your other “New Year” resolutions are more easily achievable as a result!
Need financial advice in Adelaide?
We are qualified to discuss everything covered in this article and encourage you to contact us if you have further questions.
Prominent Financial Services would welcome the opportunity to help you. We provide financial advice and guidance to ensure our clients are financially educated to make smart financial decisions. Book a ‘Free’ Discovery Call Today
