Looking forward I see several items that could be a priority in the next year.
First is what I will call cash management. There are savings accounts earning 4% or higher right now. I know there are several of you with $60K+ plus in checking/savings that are earning next to nothing. By making a simple switch to a different bank account, you could start receiving $200/mth+ in interest.
Second, maintaining good investment behavior. A prolonged bear market is tiring. From 1928 to 2022 the S&P 500 has only been down in two consecutive years 9% of the time- gains followed by gains (55%), gains followed by losses (18%), losses followed by gains (18%), and losses followed by losses (9%). Reference below article. Please don’t abandon your investment philosophy after a single year of poor returns.
Third, tax planning. Many of the tax changes in the Tax Cuts and Jobs Act (signed into law in December 2017) are set to expire in 2025. While it is still years out and anything is subject to change, many advisors will start considering the ramifications for clients.
Financial planning is never stagnant. Happy planning in 2023!
Advent - Joy
Luke 2:9-11 - “An angel of the Lord appeared to them, and the glory of the Lord shone around them, and they were terrified. But the angel said to them, “Do not be afraid. I bring you good news that will cause great joy for all the people. Today in the town of David a Savior has been born to you; he is the Messiah, the Lord.” NIV
A Wealth of Common Sense - How Often is the Market Down in Consecutive Years?
“Most of the time good stuff happens in the markets. But sometimes bad stuff happens too. To survive over the long-run you need to make sure you bake both outcomes into your expectations.”
Thank you for reading!
Images from Pexels: photographer Engin Akyurt.