Reevaluating Financial Goals and Estate Planning in the New Year

Dear Friends,

It is hard to believe that it has been over eight months since I joined Raymond James and Kairos Wealth Advisors. I truly feel that the last fifteen years of my experiences as a financial advisor has been to prepare me for joining Alex, Lisa, and their wonderful team. Although, I am sure you will agree that the Kairos team is more like a family. Everyone, including clients, are treated as family, with warmth, kindness, and compassion.

I hope everyone has had an enjoyable holiday season, and a positive start of the new year. I was able to spend some quality time with my family, and my wife, Jennifer and I, also greatly enjoyed babysitting our grandson. The holiday season brings everyone closer together and deepens our faith and empathy for others.

As the calendar has turned a new leaf, it is the perfect time for you to reflect on the past and set the stage for a brighter future. One aspect of life that often requires a thoughtful review is your financial well-being and estate planning. The beginning of the year serves as an opportune moment to reassess goals, identify areas for improvement, and ensure that your financial plans align with your evolving priorities.

In this article, I will delve into the importance of reevaluating financial goals and estate planning concerns, accompanied by a practical checklist to help guide you through the process.

The Significance of Reevaluation

• Life Changes and Milestones

Life is dynamic, and with each passing year, you can experience significant changes and milestones. Whether it is a new job, marriage, the birth of a child, or even retirement, these events can impact your financial landscape. Reevaluating financial goals will allow you to adapt to these changes, ensuring that your plans still are relevant and supportive of your current life stage.

• Economic Landscape

The economic environment is constantly evolving, influencing your investments, savings, and overall financial stability. Regular assessments will enable us to respond to economic shifts, optimize your portfolios, and make informed decisions about your financial future.

• Retirement Planning

As you move closer to retirement, the importance of assessing your retirement savings and income strategies cannot be overstated. Reevaluating retirement goals helps us determine whether you are on track to achieve the desired lifestyle post-retirement and make any necessary adjustments.

• Tax Planning

Tax laws undergo changes, and staying informed about these alterations is crucial for effective tax planning. Periodic reviews allow us to identify potential tax-saving opportunities and ensure compliance with the latest regulations.

The New Year Checklist

1. Review Financial Goals

Take a comprehensive look at your short-term and long-term financial goals. Are they still aligned with your current priorities and life stage? Consider goals related to savings, investments, debt reduction, and major expenses.

2. Assess Income and Expenses

Evaluate your current income sources and expenditures. Are there opportunities to increase your income or reduce unnecessary expenses? Understanding your cash flow is fundamental to effective financial planning.

3. Emergency Fund Check

Ensure your emergency fund is sufficient to cover three to six months' worth of living expenses. If changes in your life have occurred, adjust the emergency fund accordingly to provide a financial safety net.

4. Retirement Savings

Review your retirement savings strategy. Are you contributing enough to meet your retirement goals? Consider maximizing contributions to retirement accounts, especially if you have experienced an increase in income.

5. Investment Portfolio

Assess the performance of your investment portfolio. Diversification is an investing strategy used- to help manage risk. Consider rebalancing your portfolio to maintain an optimal asset allocation based on your risk tolerance and financial goals.

6. Insurance Coverage

Review your insurance policies, including life, health, and property insurance. Ensure coverage aligns with your current needs and update beneficiaries if necessary. Consider additional coverage if major life changes warrant it.

7. Debt Management

Examine your outstanding debts and develop a plan for debt reduction. Prioritize high-interest debts and explore strategies to accelerate your debt repayment, such as debt consolidation or refinancing.

8. Tax Planning

Stay informed about changes in tax laws and assess your tax planning strategy. Identify opportunities for tax optimization, such as maximizing contributions to tax-advantaged accounts and taking advantage of available deductions.

9. Estate Planning

Update your estate plan to reflect any changes in family dynamics, assets, or preferences. Ensure your will, power of attorney, and healthcare directives are current. Review and update beneficiary designations on accounts.

10. Seek Professional Guidance

Consider consulting with your Kairos Wealth financial advisor, tax professional, and estate planning attorney. Their expertise can provide valuable insights and ensure that your financial strategies align with current laws and best practices.

Conclusion

Embarking on a journey of financial self-discovery at the start of the year is a proactive step toward realizing your goals and enjoying a prosperous future. By reevaluating your financial goals and addressing estate planning concerns, you set the foundation for your financial well-being that aligns with the ever-changing landscape of life. As you navigate the complexities of personal finance, let the dawn of the new year be a beacon guiding you toward informed decisions, prudent planning, and a brighter financial future.

At Kairos Wealth Advisors, we help you plan for and make the most of what is important in your life, to bring clarity and balance to your financial life, and to be there for you through life’s journey. You are the center of our attention, and together we work toward your goals.

Thank you. Sincerely, Greg Wagner, CFP^®, CRC^®

Disclosure: Any opinions are those of Greg Wagner and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification. Past performance is not indicative of future results.