The beginning of a new year is the perfect time to reflect on our goals and set resolutions for the future. While many resolutions focus on personal growth and well-being, it’s important not to overlook the importance of setting financial resolutions, too! Our team has a few suggestions to help you stay focused on long-term security and wealth preservation in the new year. Below are three realistic financial resolutions to prioritize in 2024:
Organize Your Financial Landscape: Streamlining for Peace of Mind
One of the keys to financial security is having a clear picture of your finances. Start the year by organizing your financial landscape. Take the time to review your assets, liabilities, income, and expenses. Ensure that all your important documents—such as bank statements, insurance policies, investment portfolios, and tax records—are organized and easily accessible to the appropriate parties. By doing so, you not only limit potential headaches for your loved ones, but also gain peace of mind knowing that your financial house is in order.
Consider creating a comprehensive financial plan that outlines your short-term and long-term goals. This plan can serve as a roadmap for your financial journey, helping you make informed decisions about saving, investing, and achieving your desired lifestyle. Ask us how our fully-managed accounting and financial concierge services can help you gain control of your finances—without having to manage day-to-day financial tasks.
Create or Update Your Estate Planning Documents: A Blueprint for the Future
Estate planning is a crucial aspect of achieving financial security, yet it’s often overlooked. If you haven’t already, take the time to create or update your estate planning documents. Your estate plan likely includes a Trust, a Pour-Over Will, a financial Power of Attorney, and Advance Healthcare Directives. Having these documents in place ensures that you will receive medical care in alignment with your preferences, that your final wishes will be clearly communicated and legally binding, and that your assets will be distributed per your instructions.
We know that the process of estate planning brings up a lot of uncomfortable topics—no one likes to think about their own mortality—but getting your affairs in order is crucial to protecting yourself, your loved ones, and the assets you’ve worked a lifetime to accrue.
Communicate Your Wishes to Your Loved Ones: Building Trust and Transparency
The decisions you make in your estate plan are yours, but explaining them to your loved ones now can help minimize conflict and ensure your family members know what their role will be—when the time comes—in administering your trust or estate. Take the time to communicate your wishes openly and honestly. Share the location of important documents, such as your Will and/or Trust, and discuss your vision for the future with your family and beneficiaries.
At Santa Barbara Fiduciary, we understand the importance of building trust and transparency within families. We also understand that family dynamics can be complicated. Sometimes, hiring a professional fiduciary to act as your agent and/or administer your estate is a better option for reducing friction amongst family members, and ensuring that all decisions made are in your best interest. Learn more about our trust and estate administration services, and how—with proper planning—you can prevent your family from fighting about your final wishes.
These three resolutions are essential steps to financial security, and now is the time to get started. So it goes, the best time to prepare the umbrella is before it starts raining.
At Santa Barbara Fiduciary, we are committed to helping you safeguard your legacy through sound guidance and preparation. Get in touch and let us know how we can help you achieve your resolutions this year!
