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Top 5 Financial Planning Resolutions for 2017

                                  Top 5 Financial Planning Resolutions for 2017

 

 

We are already one month into 2017, but I thought I would share 5 important items to help you create and secure a better financial future this year.

Diversify – The US stock market has outperformed international , emerging markets, and global real estate for the ten years ending 12/31/2016 : 7.1% vs. 2.4%, 1.1%, and 1.5%. This is not unprecedented. Even though the US market has outperformed for the past10 years ending 12-31-16, it is a mistake for an investor to expect this pattern to go on forever. One only needs to look back at the 1990s to see similar performance. The decade of 2000 to 2010 is often called the “lost decade” due to low performance of the US market, and the Great Recession. We believe investors are best served by staying diversified.

(Source: Russell Investments; US Equity Large Cap Russell 1000 Index. Russell Developed Large Cap Index, Russell Emerging Markets Index, Global Real Estate – FTSE EPRA/NAREIT Developed Index.)

Create a Spending Plan – Knowing where your money goes each month and monitoring spending can be an eye opening experience. Differentiate between your basic needs, the absolute minimum you need to get by, and evaluating your “want to have” expenditures. You may find some space and money to start saving for the important things in life you want to accomplish. Need help creating a budget? Look at youneedabudget.com.

Get a Second Opinion – If you are not sure what underlying expenses you are paying for on the investments that you own, or if you are not sure if your allocation on your 401k and personal investments are in line with your values and your long-term goals, getting a second opinion can be very beneficial. When was the last time you met with your financial advisor to review these items? If your answer is “I don’t remember,” the time is right to seek another opinion.

Protect What You Have – Do you know for sure that your spouse, partner, child, or parents would not suffer financially if you suddenly died? If you don’t know, or your reaction was “I think they would be okay,” now is the perfect time to get this part of your financial life in order.

Power of Attorney – Everyone should have a legal document called a power of attorney. This document gives another person the ability to act on your behalf, should you become incapacitated. A power of attorney gives another person the authority to access your accounts, pay your bills, sign documents, etc. on your behalf if you are unable to do so.

Everyone over the age of 18 should have this document in place. Wills, trusts, healthcare powers of attorney, and living wills are also important. These documents comprise what we call an “estate plan.” The healthcare and durable powers of attorney are important documents while you are alive. The will instructs how to distribute your estate at your death.

If you have about questions about any of these items, give us a call at 901-767-0668.

 

 

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Comments that may include past performance are not intended to be forward looking and should not be viewed as an indication of future results. Trusts should be drafted by an attorney familiar with such matters in order to take into account income, gift and estate tax laws (including generation skipping transfer tax). Failure to do so could result in adverse tax treatment of trust proceeds. Using diversification as part of your investment strategy neither assures nor guarantees better performance and cannot protect against loss of principal due to changing market conditions. All investments involve varying levels and types of risks. These risks can be associated with the specific investment, or with the marketplace as a whole. Loss of principal is possible.

 

Note: Due to industry regulations on communication, we are unable to allow for public comments on this blog. Please feel free to email me your questions and/or comments to kathy@fishandassociates.com. Thank you.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Kestra IS and Kestra AS are not affiliated with Fish and Associates. Kestra IS and Kestra AS do not provide tax or legal advice.


This site is published for residents of the United States only. Registered representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all of the products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact the Kestra IS compliance Department at 512-697-6000.


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