Four moves that can help make you financially fit in 2018 and beyond
- Personal Finance
According to a survey by the American Psychological Association, the top source of stress that causes people to pursue costly, unhealthy habits is money. Work-related stress is a close second (cited by 65% of respondents), followed by stress due to family (54%), and health (51%).1
So if one of your New Year’s resolutions is to de-stress your life by taking better care of yourself — eating better, exercising more, improving relationships, and/or practicing “mindfulness” or yoga — why not include a few stress-busting goals for your money and fiscal fitness too?
Here are some actions to consider exploring with your advisor and other professionals on your financial team right now:
1. Make sure you’re investing appropriately.
Keep your investment portfolio on track for your current goals and risk tolerance. As your personal and business situations change and the stock and bond markets continue to shift in the year ahead, your asset allocation may need to be adjusted and rebalanced, but always with your unique needs in mind. Watch a video to learn more about the benefits of portfolio diversification.
Do you anticipate more market volatility in 2018? You may want to schedule a quick check-up with your advisor to feel comfortable that your savings and investment accounts are aligned with your expectations. And don’t forget to watch our Q1 Investment Outlook webinar to hear Boston Private’s Investment Team share their insights on the macroeconomic and market outlook.
2. Prepare for life’s curve balls.
Having sufficient insurance and cash set aside for emergencies can go a long way in reducing your financial stress. This also may be a good time to review your options for self-insuring or purchasing an insurance policy with your insurance provider to address the possibility of unexpected long-term care expenses in your later years. For more ideas on managing the unexpected read: Six life events that can affect your financial plan —and how to prepare for them.
3. Protect your assets for the future.
Before things get too hectic with your New Year’s commitments, why not spend a few minutes with your estate planning attorney and financial advisor to make sure your assets are protected for the future with:
- A comprehensive estate plan, which includes:
- an updated will, power of attorney, advance directive, and health care proxy
- establishing or revising trusts to protect your wealth for the next generation
- an annual check to make sure that the beneficiary designations for all of your financial and retirement accounts are up-to-date as your life changes
- A strategy to manage the high cost of health care when you’re older, including
- saving more today to manage the extra Medicare premiums paid by high earners
- taking advantage of a Health Savings Account if you have access to one
- A business succession plan that paves the way for the orderly transfer of your firm
4. Keep on top of how the new Tax Act could affect you.
If you haven’t done so already, check in with your tax advisor soon to make sure you understand how the Tax Cuts and Jobs Act might affect you as an individual and, if applicable, as a business owner. Listen to our recent webinar replay featuring Washington Policy expert Doug Fisher and other professionals for a roundtable discussion on what tax reform means to individuals and businesses.
At Boston Private, we look forward to helping you maintain your financial well-being and realize the full potential of your wealth. We pride ourselves in taking a holistic, big-picture view of your situation and identifying solutions that address your unique and highly personal wealth management, trust, and private banking needs.
The opinions expressed and information contained in this article are given in good faith, may be subject to change without notice, and are as of the date issued. The accuracy and completeness of this information is not guaranteed. Since each client’s situation is unique, please review your specific investment objectives, risk tolerance and liquidity needs with your advisor before a suitable investment strategy can be selected.
1 - Stress in America™: Paying with our Health, American Psychological Association, Feb. 2015
- Personal Finance