By Anh Tran, Esq.
& Christine Tang, CFP®
Modern Wealth Advisors, Inc.
1. Start saving today! Whenever possible, direct part of each paycheck to saving for unexpected expenses, retirement, and your other financial goals. Remember, the earlier you start to save (even in small amounts), the better because it allows more time for compound interest or earnings to build up.
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2. Create a financial roadmap. Defining your financial goals and creating a plan for reaching them is a great first step on your journey towards financial fitness. If you already have a plan, be sure to evaluate your progress each year so that you’ll have time to make changes to your plan if necessary.
3. Live within your means. The surest way to build wealth is to spend less money than you bring in. When it comes to spending, it is a good idea to take care of necessities first (food, housing, clothing, transportation, etc.), savings second, and use only what remains to pay for the things you want.
4. Use credit wisely. Credit can both help and hurt when it comes to financial goals. If your goal is to buy a home, a low-interest mortgage is a smart way to go. Carrying large balances on high-interest credit cards, however, can prevent you from reaching your goals. Pay off your high-interest debt so you can afford to save.
5. Review your credit reports. Check your reports for signs of fraud and inaccurate data that may cause you to be charged higher interest rates on credit. You can get free credit reports from the three major credit reporting agencies every 12 months at www.annualcreditreport.com.
Modern Wealth Advisors, Inc. is a full service wealth management firm located in Irvine, California. With more than 20 years of collective advisory experience, our mission is to help our clients manage life’s milestones. No matter what stage you are in life, our goal is to help you accumulate wealth, protect wealth, and build a legacy so you and your family can pursue your dreams. We strive to achieve this through a combination of comprehensive financial planning, innovative solutions, and cutting-edge technology which are tailored to your individual needs and goals. For more information, please contact us at (949)464-8299 or [email protected]. Please visit us at http://www.modernwealth.com/. |
6. Self-employed? Start a small business retirement plan. Personal IRAs are great, but retirement plans designed specifically for small businesses and self-employed individuals allow you to sock away considerably more income each year on a tax-deferred basis.
7. Rebalance your portfolio regularly. When your mix of stocks, bonds, and other types of investments strays from your chosen allocation percentages, your portfolio may have either more risk or less potential for reward than you originally intended. Returning to your asset allocation percentages can help keep your investment program on track.
8. Review your insurance coverage. Were there any major changes in your life last year? Major life changes, such as a new marriage, divorce, child, business, or inheritance, may signal the need for changes to your insurance coverage.
9. Review your estate plan. With all the changes to the federal estate tax in recent years, 2013 is a good time to check that your estate plan reflects the current estate tax rules. At the very least, make certain that the beneficiary designations on your retirement plans, financial accounts, and life insurance policies are up-to-date.
10. Have fun! Although ensuring your financial fitness and reaching financial goals are important, so is enjoying yourself along the way. So remember to cut loose and have some fun with your money – of course only within your means!
