It’s A New Year! Is It Time To Reevaluate Your Financial Plan?

A new year is often a time for fresh starts, intentional planning, and renewed motivation to conquer goals and accomplish things that are important to you. As you transition into 2021 and all this year will bring, take some time to think about your long-term plans and reevaluate your decisions, especially in the following key areas. 

TAX STRATEGY PLANNING

In the wake of a major election and a change in administration, questions naturally arise about how tax laws could change and how that could affect your wallet. If tax rates increase for your tax bracket, you may want to shift some of your savings allocations to tax-deferred vehicles such as a 401(k) or a traditional IRA. The recent stimulus bill contains several tax law changes, including the ability to roll forward unused FSA funds from 2020,[1] 100% deductible business meals, and penalty-free retirement plan withdrawals for families affected by declared disasters.[2] Because of how often new tax legislation is introduced, tax planning is not a one-and-done deal. Revisit your plan to make some shifts that will help you in the long run.

TRACKING RETIREMENT FUNDS

As we learned from the Great Recession, it is important to stay proactive when it comes to your cash flow and retirement funds. The temptation to adopt a “set it and forget it” approach can create financial blind spots, especially when the demands of work and family make it challenging to carve out time to review finances. If you have not kept track of your investment accounts, retirement plan balances, and other assets, commit to start keeping a pulse on the health of your family’s finances at least once a quarter, if not monthly.

INSURANCE COVERAGE

Inadequate insurance coverage is a common issue that can derail retirement plans, especially in the event of unforeseen health problems or injuries that force individuals to retire early. A 2020 study found that only 54% of Americans have life insurance, and that 40% of policyholders reported that they wished they had bought coverage sooner.[3] Life insurance policies are not all created equal, and many policies offer living benefits that you can draw on if you need help paying medical bills or other expenses. It’s prudent to make sure you have the proper policies and coverage for your unique situation.

ESTATE PLANNING

Regularly reviewing your estate plan is a crucial component of your financial strategy. Life moves quickly, and it is all too easy to forget how much can happen in a short period of time. Arrivals of new children or grandchildren, health conditions, asset purchases or liquidations (such as buying a new home), marriage/divorce, retirement, unemployment, remarriage, and deaths in the family can make a significant impact on the big picture of your estate plan.

LET US PARTNER WITH YOU

As we settle into the new year, it’s wise to anticipate and prepare for the changes that every season of life brings. If you are ready to reassess your long-term goals or would like to discuss how to build a solid foundation for your future, email us at [email protected] or call (760) 813-2125.

ABOUT OUR ADVISORS

Brett Gottlieb is the founder of Comprehensive Advisor and a financial advisor with nearly two decades of industry experience. He graduated from California State University-Chico with two bachelor’s degrees in Business Administration and Economics. Brett is Life Insurance licensed in several states. He is passionate about guiding his clients on retirement income planning, helping each client pursue their specific retirement goals and defending the assets his clients have worked so hard to achieve. Brett is a California native and currently resides in San Elijo Hills with his beautiful wife and three children.

With a combined experience of over three decades in the financial services industry, our advisors hail from some of the largest independent broker/dealers and banking institutions in the country. They have dedicated their professional careers to creating personalized financial solutions for individuals and families who seek successful retirement planning and currently offer investment advisory services through AE Wealth Management, LLC. Our advisors take a common-sense approach to the planning process and work with clients to create a retirement road map to help ensure their assets are protected and they receive the income needed to enjoy their future. Based in Carlsbad, California, they work with clients throughout San Diego County and beyond. Learn more by connecting with Brett on LinkedIn or email them at [email protected].

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Comprehensive Advisor are not affiliated companies. C.A. Financial & Insurance Services, CA Ins. Lic. #6000262. This material is intended to provide general information and is believed to be reliable, but accuracy and completeness cannot be guaranteed. Neither the firm nor its representatives may give tax or legal advice. Investing involves risk, including the potential loss of principal. Any references to protection benefits, safety, security, lifetime income, etc. generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. 797943-1/21

[1]https://www.marketwatch.com/story/covid-relief-bill-will-let-fsa-money-roll-over-into-2021-a-win-for-parents-and-those-with-live-in-elderly-loved-ones-11608825806#:~:text=Workers%20could%20set%20aside%20up,year%2Dend%20or%20be%20forfeited.

[2]https://www.journalofaccountancy.com/news/2020/dec/tax-provisions-in-covid-19-relief-bill-ppp-and-business-meal-deductibility.html

[3] https://www.policygenius.com/life-insurance/life-insurance-statistics/