At the start of a new year, it is typical to reflect on the past year and to make plans for the twelve months to come. This is a suitable approach for work projects or your social calendar, but it may not be the way to approach financial investments and retirement planning. Rather than trying to plan out your investments for the year, seek the counsel of a fee-only financial planner who has the expertise to help you achieve your financial goals over time.
While there is nothing wrong with having financial goals for each year, you may also want to get help with long-range planning. Clarity Financial Planning Services is an advocate for your financial future and takes a holistic approach to your needs and goals. Wealth is about more than your portfolio; it is about mindset, decision making, insurance needs and plans, keeping beneficiaries current, and making sure you have the skills you need to manage your financial record keeping.
Outlining investments on a yearly basis isn’t the best strategy because planning for retirement is a long-term project. When you seek out the most lucrative investments with the goal of getting your portfolio to a certain level this year, you are likely to choose investments are of the “here today, gone tomorrow” variety. These investments may bring immediate gains, but may not be suitable from growing your portfolio over a number of years. You may end up doing a lot of guesswork to pick “hot” investments. Some people find that hot investments cool quickly. They then scramble to sell those and find the next big thing. This approach can be stressful and may not yield the kind of results you want.
As Walter Updegrave, a columnist for Money magazine, observes, “In reality, smart investing is more about assembling a group of tried-and-true assets that give you diversification than trying to predict tomorrow’s top gainers.”