In the past 22 months (and counting), you figured out how to work from home, meet remotely, share your space with family, and keep your practice running smoothly. Now there’s a sense of renewed optimism for the year ahead. We’re starting to travel again, see family and get back to the office. That makes now a great time to take stock of your financial situation and start looking forward to what comes next.
Here’s a list of “big financial shifts” you’ll need to consider as they could impact your financial plan in the year ahead:
Cash management: Keep more of what you make
If your income was higher or lower than usual, your financial advisor may suggest a temporary adjustment to how you allocate your savings. For example, if you made more money than last year, you may want to top up your registered retirement savings plan (RRSP) before March 1st to defer income tax and increase the likelihood of a sizable refund. If your income was lower, you may want to reduce your RRSP contribution this time around, saving that room for later.
Asset protection: Stay protected and adjust as needed
If you made some changes to your insurance coverage because you drove less, worked from home or moved to a new one, it may be time to take a second look. If you’re getting back on the road and opening the office to clients again, dust off your insurance plan and make sure your coverage aligns with all the changes going on in your life.
Does your plan need a reset?
Financial plans are built to respond and adjust to all of life’s changes. To help you think about how changes to your situation could affect your plan, Lawyers Financial has prepared the Financial Reset Checklist.
Retirement planning: Rethink retirement
Retirement planning goes far beyond the numbers. It’s relatively easy to estimate your financial needs, create a plan to ensure a stable and sufficient income, and keep your taxes as low as possible. The bigger question is figuring out how you want to spend your time and energy when you retire. If your plans for the future have changed, let your advisor know so they can help you readjust your course.
Estate Planning: Re-examine your legacy
The past two years gave us all the opportunity to re-examine our most valued relationships and think about the kind of legacy we want to create. You may be thinking about giving your kids a leg up now instead of down the road, or leaving financial gifts to charities that matter to you and your family. However you envision your legacy, a Lawyers Financial advisor can help turn these priorities into an solid estate plan.
What matters most
Reassess your priorities. Are the same things important to you today as two years ago? If anything’s changed, talk to your advisor and adjust your financial plan to make sure it reflects what matters most to you and your family. Taking time before the end of the year to review your personal and professional finances can reveal new opportunities and keep you on track.
Is it time for a reset?
Talk to a Lawyers Financial advisor to make sure your financial plan changes with your priorities.
Your financial plan – it’s all connected. When your priorities change, talk to your advisor about adjusting your plan.