Originally published on fwtx.com on July 11, 2022
BY: KATHY CHRISTOFFEL, CTFA
Market President, Argent Trust-Fort Worth Market
Improving your wealth management strategy is one of the most important things you can do to ensure your financial well-being, but it’s the kind of task that can easily get pushed down your to-do list if you’re not careful. The good news is that the necessary steps to get your financial life in order are well-defined and achievable, even for those with busy lives.
1| Create a realistic budget
No matter your age or living situation — a single person just entering the working world or a parent nearing retirement age — one of the most important financial steps you can take is to create a realistic budget. Examine your pay stubs, debit card charges and credit card statements and inventory how much money is coming in and how much is going out — as well as where that money is being spent. It’s also important to check your credit report to make sure the nationwide credit reporting companies have accurate information and there are no errors or fraud that could affect your financial well-being.
2| Take advantage of retirement planning strategies
Try as early as you can in your career to actively invest money for retirement. Because of the power of compound interest, the longer that money has to grow, the greater chance it’ll be worth significantly more by the time you retire. If your employer offers matching funds for your company 401(k) or other employee retirement plan, set your contributions high enough to receive the highest possible matching dollars. If you have a 401(k) or IRA and are 50 years or older, you can also take advantage of catch-up contributions, which allow you to exceed the normal maximum yearly contribution limit (normally $6,000 for those under age 50 and $7,000 for those 50 and up) without penalty.
3| Get the perspective of a financial professional
Once you’ve gotten a handle on your personal financial situation, make an appointment with a financial professional to see how your current investments are faring and whether changes might be in order. If your money is invested in underperforming sectors, your advisor can help you evaluate if a change of strategy would be in order. Or perhaps you’ve done well with your investments and an advisor can help you decide if it’s an appropriate time to sell. The goal should be to diversify your investments so that you’re not too heavily invested in one area and therefore vulnerable to fluctuations in the market.
How Heritage can safeguard your financial future
It’s not an overnight process to get your wealth management strategy updated, and it can require some time and brainpower. But it’s much more preferable to start early than to wait until it’s too late. If you’re seeking assistance on ways to improve your wealth management, build your wealth and safeguard your financial future, reach out to one of our professionals at 877-887-8899.