Following the post-COVID stimulus hangover in 2022, the bull market has continued to run. One of the key factors was the Federal Reserve’s decision to
2019: New Year, New (Financial) You
Published Date : January 30, 2019
There is no better time than the first few months of the year to utilize the momentum of the season to ensure your financial health is given proper attention. To kick off the process, you must first take a moment to reflect on 2018 to determine what is working and what needs attention. From there, create an action plan, or checklist, to utilize as a working roadmap for the new year. Finally, start the process by scheduling appointments with your team of professional advisors to discuss and work through your checklist and execute on your goals.
The first step in this process is reviewing your 2018 experience. The volatility in both the stock and bond markets last year provided reminders that no single investment or asset class is truly a safe-haven, and diversification and disciplined rebalancing matters. Review your current investment plan: With the increase in market volatility, was your mix of investments appropriately aligned with your risk tolerance, short-term cash requirements and long-term growth needs? Were you able to stick to your plan through the major market pullbacks? Survey your spending: Utilize the year-end summary reports offered by banks and credit cards to get a sense for the actual outflow it takes to maintain your lifestyle.
Next, build your action plan and engage your professional team of advisors. Tackling the list below can begin by speaking with your Sand Hill Wealth Manager who can then manage the entire process on your behalf. The topics that require adjustments will likely involve communication and coordination with your tax advisor, estate planning attorney and insurance broker.
- Credit/Fraud Check – Begin the year with your first of three free credit checks via www.annualcreditreport.com and make sure all accounts in your name are valid.
- Gather Updated Schedules – For stock options/RSUs/10b5-1 plans and other direct investments, ensure that you are in possession of the most recent statements.
- Risk/Return Check In – An annual discussion with your Wealth Manager about the appropriate mix of your growth and preservation assets is recommended and addressed during our portfolio review meetings.
- Budget – Have your 2018 expenses paired with income sources to determine if income shortfall or surplus planning is needed.
- Contribution/Savings – Maximize contributions for savings and retirement accounts if available.
- Debt Reduction – With interest rates on the rise, it is an important time to develop a plan to reduce or eliminate debt with high or variable interest rates (credit card balances, margin loans, HELOCs, ARMs).
- Insurance Review – Schedule an insurance review to ensure your property and casualty, excess liability (umbrella) and general life insurance needs are still appropriate.
- Estate Plan Review – Discuss any changes to your estate plan goals with your Wealth Manager to determine if a plan modification is appropriate, then connect with your estate planning attorney to implement those changes.
Starting the year with a clear assessment of the prior year’s activity and experiences will be valuable to creating an action plan that ensures your financial health and prosperity for years to come. Like any valuable asset you own (home/business/automobile), routine preventative maintenance and diagnostic analysis is essential to maintaining its long and productive life. Your financial well-being is no different and deserves a thorough annual checkup.
Articles and Commentary
Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.
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All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.
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