Financial planning for 2023 involves fundamental principles!
The Walton Financial Group in Barrie, Ontario offers advice for a sound financial plan in 2022
With vaccinations underway and the economic recovery continuing in fits and starts, we can anticipate an improving financial situation in 2022.
You’ll probably hear pundits say they are “cautiously optimistic.” But it’s important to position your finances so you can both benefit reasonably well from an optimistic scenario, yet also cope successfully in the event of a more pessimistic outcome.
Here are four fundamental principles to help you deal with the year ahead and beyond.
1. Have “emergency” money ready.
The benefits of having a readily accessible “emergency fund” that can tide you over for at least three to six months was readily demonstrated in the pandemic. (Note retirees can usually benefit by having quite a bit more.) People typically set this aside in a high-interest savings account. But the part of your investment portfolio held in relatively safe and liquid form (including money held in short-term government bond funds or money market funds, or government-insured GICs if they are “cashable”) can also do double-duty and serve this purpose. In either case, the “emergency” money should be held in a non-registered account or possibly a TFSA, but not an RRSP (mainly because RRSP withdrawals for an emergency could give you a big tax liability at the wrong time).
Of course, getting a rate of interest that is materially greater than zero is the challenge. The team at the Walton Financial Group can advise you about your best options to maximize your interest rate.
2. Find the right balance for your portfolio.
This is the time of year that many stock market experts come out with their market forecasts for 2022. While they sound good, no one really knows what’s going to happen over a short period like a year. Finding the right portfolio balance for you is highly personal based on your financial objectives, risk tolerance, time horizon and other personal circumstances.
The financial advisors at The Walton Financial Group will offer advice to individuals based on factors like age, risk tolerance and investment horizons.
3. Refocus for the longer term.
If you have managed to get through the pandemic so far in good financial shape with a secure job, now might be a good time to start to refocus on longer-term financial goals like retirement.. The key is being flexible and creative about finding the best retirement lifestyle for you that fits within whatever means that you have.
The retirement planning experts at the Walton Financial Group can help you chart a course designed just for you.
4. Be sure you get the investment advice you need at a reasonable cost.
Your investment adviser had their chance to shine during the pandemic’s wild market swings this past year. A key part of doing their job well was to be a calming presence that helped you “stay the course” during these wild swings while, ideally, helping you re-balance when the market reached extremes. If you received consistently sound advice and responsive service that helped you through this stressful time, then your adviser has gone a long way toward providing value .
If you want to see how well the team at the Walton Financial Group did in 2021, take a look at the testimonials provided by our clients by clicking the link below.
