Fitness takes many forms: physical, emotional and, yes, financial. We encourage you to take the beginning of 2015 and approach your financial fitness with as much rigor as you would to any other part of your overall health and well-being. To achieve your goals, make it a habit to start each New Year with a clear understanding of your financial fitness.
What are your financial goals, both long and short term? Have they changed? Your goals can range from buying a home or remodeling a current property, saving for your child’s education, planning for retirement, or leaving a legacy. By annually re-defining your near-term (1 year), short-term (3-5 years), and long-term goals, you ground your financial decisions in your current goals, not old or outdated ones.
Having defined and confirmed your goals, are your finances working in support of them? Are your assets producing the financial returns needed to achieve your goals? Even assets that aren’t financially motivated produce a return; evaluate these as well. Do they provide the quality of life you desire?
What needs your attention immediately and what may need attention in a few years? Are your real estate investments performing as expected? Are there actions to take this year? Upgrade? Remodel? Liquidate? Are there any deferred maintenance items that should be attended to in 2015? Are your investments performing? How do your holdings perform against the national average? Will you be able to achieve your financial goals both now and in the future?
Once you have analyzed your current status, assets and resources available to you, and changes to make, formulate your final financial plan. We are happy to help you with any stage of your financial assessment and planning. We have developed strong relationships with some of the best local, trusted, and experienced, CPAs, financial planners and wealth managers in Sonoma County. Please contact us; we would be honored to pass along their contact information to you.
There is a lot to be said for a yearly fitness assessment, especially a financial one. We feel that the best New Year’s resolution you can make is to look at all of your investments, not just your real estate holdings, to make sure they are working together in service of your financial goals and dreams.