The start of a new year marks a strategic time to review a financial plan and develop goals to work toward over the next 12 months and beyond. This “fresh start” mentality allows individuals to review and assess what worked (or didn’t) over the course of the previous year and revise or create short- and long-term goals to strengthen their financial plan.
The new year also restarts the calendar from a tax-planning perspective, so it’s beneficial to think through tax-efficient opportunities, such as gifting, retirement contributions and more. Here are four steps to consider that can have a lasting impact on a financial plan both this year and well into the future.
Step 1: Rebalance your portfolio
In addition to reviewing overall goals, the start of a new year also marks a good time to review portfolio allocations. Investors should assess their objectives and risk tolerance to ensure their portfolios are appropriately aligned. This is particularly important now, as a decade-long bull market has likely left unattended portfolios more heavily weighted to equities than intended.
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