2017: The year of the ‘Fire Rooster’ and good money management

We find ourselves at the start of a new year. Once again, we pause and take time for reflection and renewal of what lies ahead. Typically, reflection and renewal culminate in a person’s New Year’s resolution. The New Year’s resolution is first found in history where the Babylonians made promises to their gods at the start of each year that they would return borrowed objects and pay their debts. Today, our resolutions are certainly a bit different from the Babylonians, but the concept is the same - to reflect and create goals.

I have heard many resolutions this year ranging from…I am going to join the gym, to spending more time with family, eating organic, taking a vacation, starting a new business, to having less screen time after dinner. Each of these is designed to fix a perceived “weakness” the individual has experienced over the past year. Resolutions often provide insights into what a person values most in their life. Every year when I read a person’s resolution, more often than not, I am surprised that I don’t see more focused on financial wellness. Financial wellness enables us the opportunity to focus on accomplishing the goals we seek.

Do yourself a favor, make a list of things you value and add financial wellness to your resolutions list. Being financially “well” means understanding your current financial position and having a clearly designed plan so that you use your time, resources and energy to endure and succeed in your life. Just like being physically well, we should be able to articulate and understand our unique prescription for our financial lives. When you are financially well, your values and resources will be aligned and you will have answers to all of the following questions:

What portion of my income am I spending annually? Does my spending align with my values? How much am I saving? Is this enough? What is my Personal Net Worth? How much is my business worth? How is my money currently allocated? Why is it allocated this way? What do I want my money to accomplish for me? How much am I paying in fees to have my money managed? Who is managing my money? What is their investment philosophy? Why? How much exposure do I have to China? Do I have the right investment accounts in order to maximize growth and savings? How much money will I need in retirement? If you are retired, where are you pulling income from each year? Do you have an asset location strategy? How will a rise in interest rates impact your portfolio? Are you managing your tax bill? Do you have an Estate Plan? What’s in it?

Though it may seem overwhelming, gaining clarity on each of these items will help provide you a sense of empowerment. You will be armed with a clear plan that you can use to achieve not only your annual resolutions, but also your life-long goals. In the Chinese Zodiac, 2017 is the year of the fire rooster. The fire rooster has many good qualities, one of which is good money management. So get your fire rooster on and get started today with your financial plan!

Stephanie Mackara is a Daniel Island resident and is President of Charleston Investment Advisors, LLC. Diversification neither assures a profit nor guarantees against loss in a declining market. All investing involves risk. Principal loss is possible. Charleston Investment Advisors, LLC is part of The Wealth Management Alliance LLC, a registered investment adviser. TW 17-001.

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