With the arrival of a New Year – it’s always a good time to look back at your finances, and see what worked, or didn’t, and strive towards building new goals, to strengthen your financial well-being. We believe the best life is one that is carefully and creatively designed.

 

Here are four key areas to consider in the year ahead:

 

Your Family’s Security: COVID has revealed just how fragile our life and lifestyle can be. Do you have a will and power of attorney (both wealth and well-being)? If so, when was the last time you reviewed it? Have you examined your insurance coverage for income replacement in case of death, or more importantly, disability? If you have not done either of these two actions in the last five years it is time to take a look.

 

Your Lifestyle: Many of us have put off trips or other activities over the past few years and have suddenly found more money in our pockets. If you plan to uncork some of these activities in 2022 you may want to do a quick accounting to make sure you have the funds available. You should first ensure that you maximize your RRSP contributions and TFSA and for those of you with kids, top up the RESP’s. After that you can start dreaming of a beach vacation or joining a golf club.

 

Your Financial Independence: With the positive momentum in the market over the past couple of years, many people will find that they are ahead of schedule…dare, we say, even way ahead of schedule. Now is a great time to revisit your plan and consider your options – like early retirement or a change of jobs. We have had several clients who have taken the plunge and decide to retire early and start their new chapter in their life early. Isn’t this homework worth doing?!

 

Stewardship of your Assets: Similarly, with the positive market momentum, it may be time to rebalance your portfolio, or at least examine your risk exposure. As they say, “trees don’t grow to the sky.” Rebalancing is an important mechanical process to counter our human emotions and manage the risk in your portfolios.

 

It’s such a good feeling knowing that all your ‘ducks are in a row,’ now and in the future. We always like to remind people that “a goal without a timeline is just a dream.” So, pencil in some time today to help ensure that 2022 is a successful and well-planned year.