By Alvin Wolcott, CPA

It’s a brand new year and you know what that entails … New Year’s resolutions!  One popular resolution is to take charge of your financial destiny by developing or enhancing your financial strategy.

Identifying both short and long term goals and objectives is the foundation for developing your personal strategic plan.  Your future income needs, core values, lifestyle and priorities all come into play to make your financial plan unique to you.

Some of the strategies included in a detailed financial plan include:

  • Cash flow and expense management
  • Debt reduction
  • Risk management
  • College education funding
  • Retirement planning
  • Investment management
  • Estate planning
  • Asset protection

Developing a strategy that measures your spending habits with a focus on reducing your debt level is usually a great way to manage your cash flow.  Combine this with effective tax planning to improve your available cash.   The increased cash inflows allow you to focus on your long term investment goals, such as your child’s education and your own retirement needs.

A properly managed and growing investment portfolio will reinforce your confidence that your efforts to save more are being rewarded.  As your portfolio grows, asset protection and risk management strategies become essential.

Creating realistic and achievable goals with baby steps toward your goals will make it easier to see positive results.  Financial planning is more of a dynamic process than an end goal.  As you reach near term goals you can reset your target and develop new priorities as life unfolds.

My wife and I recently concluded our annual New Year’s family financial planning meeting and I highly recommend you include this process in your New Year plans.  And be sure to contact me if I can help!