By Bill Taber
2023 is officially here! The beginning of the year always brings fresh starts, intentional planning, and renewed motivation to conquer goals and accomplish things that are important to you. If one of those goals is getting your finances in order, these steps are for you. Here, we share how to reevaluate your financial plan for 2023 and beyond.
1. Be Thankful for What You Have
There’s no better way to start the new year off right than by being thankful for what you have. Whether it’s your health, your job, or your family, being thankful is a cornerstone to happiness and financial success. Try taking some time to acknowledge that you’ve weathered a tough storm and give thanks for the good things in your life.
2. Set Financial Goals
Now that you have a clearer picture of where you stand, it’s time to define where you want to be in the future and develop a financial plan that’s aligned with these goals. When would you like to retire? What do you want your lifestyle to look like? How much will you need in your retirement account to afford this quality of life? Retirement is a big part of financial planning, but don’t forget to include all your short-term and long-term goals. Want to buy a lake house in 10 years? Pay for your children’s education? Donate to charities? Write it all down.
3. Design a Savings Road Map
So far you’ve benchmarked where you are now and where you’d like to be. Now it’s time to make a plan to bridge the gap. Assuming an average return on your investments, how much do you need to put away each month to reach your goals on time? Does your budget allow for this? If not, what steps can you take to either reduce your monthly spending or increase your monthly income?
4. Put Together Your Portfolio
Stockpiling your savings under your mattress won’t get you very far. Inflation means things get more expensive each year. We’ve seen that firsthand in 2022. But this means that your long-term savings needs to pace the cost of goods to ensure you don’t lose purchasing power in retirement. The key to achieving your financial goals is creating an investment portfolio strategically diversified to meet your personal needs and working with a fiduciary who acts in your best interest. The earlier you get this started, the more you’ll benefit from the exponential power of compound interest.
5. Define Your Withdrawal Plan
The last part of your plan is creating exit strategies for each goal. You need to be able to access your money when you need it. If you skip this step and just dump all your savings into retirement accounts, you’ll be in for an unpleasant tax surprise when you want to pay for the aforementioned lake house or college education. So keep in mind when you’ll need access to your money and which accounts to set up to best match the timing of the need.
6. Schedule Check-ins
After you’ve determined your goals for the year and reevaluated your plan, it’s time to schedule regular check-ins with your financial advisor to ensure your plan is aligned with your goals. At TABER Asset Management, we build these check-ins into our ongoing process with clients and enjoy meeting with you regularly.
Bill Taber is President and Founder of TABER Asset Management, an independent, fiduciary wealth management firm that strives to do one thing well: manage their clients’ money by creating wealth, building wealth, growing income, and preserving capital so they can experience financial freedom. With more than four decades of experience, Bill is dedicated to building relationships with his clients and their families and walking alongside them as they navigate financial decisions. His favorite days are the ones when he gets to witness the joy and relief on his clients’ faces when they realize they can pursue their dreams and live their ideal lifestyles. Bill is known for going the extra mile, getting things done with integrity, and working with a stewardship mentality.
Bill graduated from the University of Iowa with a bachelor’s degree in business administration and fell in love with the profession when he got to help one of his first clients—his father—turn his lifetime of hard work into a dream retirement. He got his start in the industry as a corporate services representative for Bankers Trust Company and spent decades working as Assistant Vice President of E.F. Hutton & Co. and First Vice President of Principal Financial Securities. He is also a graduate of the E-Myth Worldwide Mastery Business Development Program and is Series 65 registered.
In his spare time, Bill enjoys giving back to his community and served 11 years as a member of the Board of Trustees of Broadlawns Medical Center and 14 years as a Community Representative to their Board Finance Committee. He is also one of the founding members of the Greater Des Moines Connections Mentoring Program. When he’s not working, you can often find Bill spending time with his family and participating in one of his many hobbies, which include traveling to national parks, presidential libraries, and foreign countries; gardening; reading non-fiction; and practicing yoga, Pilates, and meditation. He also loves the simple joys of listening to music, going for walks or bike rides, and watching James Bond 007 films and any movie starring his favorite actress, Meryl Streep. To learn more about Bill, connect with him on LinkedIn.