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Wurz Financial Services

Jump-Start Your Financial Plan for 2022!

By Darren Wurz

Well, we survived another year full of uncertainty and intensity, with an ongoing pandemic, economic instability, and a slow road back to “normal.” But we don’t want 2022 to be another year of survival mode, especially for our finances. That’s why we’re bringing you some good news with actionable steps you can implement to take back control of your finances and truly make 2022 a fresh start. Here are four ways you can get started today.

1. Set Financial Goals

The first way to jump-start your financial plan is to set financial goals. Do you have a goal for your finances or are you just crossing your fingers and hoping you have enough for the lifestyle you want?

Specific goals with defined timelines will help to determine the best course of action, including how much risk you can and should take with your money. For instance, if you’re looking for a guaranteed source of income, then you will probably want to stick with investments that will provide long-term security. Conversely, if you are looking for substantial growth, then you might want to take on more risk and invest less conservatively. Every dollar in your portfolio should be working toward a specific goal.

Remember that the best goals will be SMART: 

  • Specific: The more you can identify exactly what you’re saving for, the easier it will be to work toward it. 

  • Measurable: As much as possible, try to identify how much your financial goal will cost. Do the research to figure out what you need to save so that you’re able to see tangible progress along the way. 

  • Attainable: Make sure your goal is realistic and achievable. This might require some self-reflection or reevaluation of your priorities.

  • Relevant: Ask yourself which goals align with your core values. Remember that your finite assets will be split amongst your seemingly infinite list of wants. The more you can scale back your list to what is truly relevant, the quicker you’ll be able to achieve each goal.

  • Timely: Identify the timeline for each goal so that you can prioritize which ones need to be addressed first and how much risk you can afford to take.

2. Fortify Your Savings

If there’s one thing the last two years have taught us, it’s that it’s crucial to prepare for the unpredictable. Whether it be a pandemic, a lost job, or rising rates of inflation, sufficient savings can mean the difference between staying afloat during uncertain times and not having enough when you need it most. 

If you’re not saving already, take steps to start putting a portion of your income away every month. Usually 10-15% of pre-tax income is a good guideline. Ideally, it is recommended that most people should have at least 3-6 months’ worth of non-discretionary expenses saved in a highly liquid, easily accessible emergency fund before saving toward other goals. Either way, consistent savings are the cornerstone of any solid financial plan.

3. Reevaluate the Risk in Your Portfolio

As mentioned in Step 1, risk is fundamental to investing. Even “investing” by hiding cash under your mattress involves risk, since there’s always the chance of a break-in or increased inflation eating away at its value. To jump-start your financial plan in 2022, be sure to reevaluate the amount of risk you are taking in your overall portfolio. 

It’s not uncommon for a portfolio to become unbalanced as the market ebbs and flows. What may have started out as a 60/40 allocation between stocks and bonds can easily become a 70/30 or 80/20 allocation, which is a significant difference in risk level. You may also find that you are too heavily concentrated in one type of asset or in one company’s stock. If this is the case for you, rebalancing and diversification should be explored. 

Though risk is fundamental to investing, it’s also crucial that you aren’t overexposed to unnecessary risks. Take steps to evaluate your risk tolerance, based on your unique financial circumstances, stage of life, and personality, and be sure your investments align.

4. Join Forces With a Professional

Regardless of where you are in the planning process or what goals you have set for your financial life, we are here to support you, guide you, and navigate any financial challenges you may face. And as an attorney, your unique and often complicated financial challenges require the specialized touch of someone who understands your situation. Partnering with a financial professional is a great way to take control of your finances and get a jump-start on the future. 

At Wurz Financial Services, we have the tools and expertise to help you manage and coordinate your financial affairs, advocating for you as you pursue your financial goals. Our mission is to help you experience confidence as you prepare for retirement and every step of your financial journey along the way. If you’re ready to start planning for the new year, schedule a no-obligation consultation, and together let’s find out if we’re the right people for you to depend upon during your journey to a comfortable retirement. Contact us at 859-291-9879 or dpw@wurzfinancialservices.com today! 

Also, join us at one or all of our free webinars: 

About Darren

Darren Wurz is a co-owner and financial planner at Wurz Financial Services, an independent, family-owned financial services firm dedicated to helping its clients transition from their working life to a comfortable retirement with confidence. Darren received his Master of Science in Financial Planning from Golden Gate University and holds the CERTIFIED FINANCIAL PLANNER™ designation. He specializes in serving the needs of attorneys and couples near retirement. He operates the Northern Kentucky/Cincinnati office of Wurz Financial Services and is an active member of the Northern Kentucky Bar Association, the Northern Kentucky Chamber of Commerce, and the Covington Business Council. He is also a member of the American Bar Association and the Financial Planning Association. To learn more about Darren, connect with him on LinkedIn.

Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck