Why it’s ‘super important’ to revisit your financial plan for 2022
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The start of the new year is not just in January.
The anniversary also marks the two year mark since the discovery of Covid-19 in America’s first case.
The pandemic was shocking to most people at the time. Today, our lives are not the same as before Covid-19.
In the wake of Covid-19’s new variant, people are now reevaluating their retirement plans and deciding where they will live.
“This may be the longest period of time I have ever witnessed in my 30 year history… [of]Ted Jenkin, founder and CEO of Oxygen Financial Atlanta, said that it is amazing how many people find themselves in this period of self-reflection.
Jenkin stated that it is “super important,” for 2022, to have everyone rework their financial plans.
It is a good time to reflect on your goals and prioritize your life. Then ask yourself, “Are your resources set up for success?” Jenkin shared these words.
Winnie Sun is the managing director of Sun Group Wealth Partners Irvine. She said clients have had to suspend their plans due to uncertainty in the coming year. The message she sent was “Control the things that you can control.”
You need to rethink the timeline for your retirement
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People have had to reconsider their work-life relationships since the Covid-19 crisis.
Advisors answer the question, “Can you retire earlier?”
Jenkin explained that those who planned on retiring at 65 would now like to see if it is possible to do the same at sixty. Jenkin said that those who had planned on quitting at 60 want to know if it is possible to move up to 55.
Jenkin stated, “I believe people tell themselves that they can have billions and even millions of dollars in their bank but it won’t help me if my health isn’t good enough to allow me to live the life I desire.”
Sun said she’s had one client who retired very young — much earlier than his colleagues — and others can do it, too.
She stated, “I told my clients, If you want to cut off 10 years of pre-retirement that means we have to hustle now and look for other income streams.”
Sun stated that you can increase your retirement time by starting a freelance or side-hustle business and making a living on the minimum wage. You must also ensure that your investments are geared towards long-term growth.
Sun stated, “If you don’t want to make the sacrifice then you’ll have to work longer years.”
She said that there is no magic formula. It’s only a plus or minus.
Make sure you include big goals in your plan
People spend so much of their time at home that many are also considering major renovations or moving.
Sun says that before you start a new project in your home, or stake out an area, it is important to determine the true cost of it and how much it will cost.
Remember that you could be unable to achieve other goals like college savings or funding retirement.
You may have to keep working a few more years if your addition is added on. Sun suggested that you ask yourself whether it’s worth the sacrifice.
Sun stated, “You have to prioritize what is most important.” But also think about the long-term, not just the short-term.
A financial advisor can also help you make the best decision.
You can fund your future happiness
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New Covid-19 uncertainties may force you to stop doing things like travel or going to large-scale events, such as concerts.
Sun stated that the upside to this is that it can be an excellent time to save money.
Spend the money you don’t use and save it for investment or savings.
Sun stated, “You have an exciting goal but you allow yourself to grow so the sacrifice is greater for later.”
Sun believes that by funding future joys, it helps her clients think positively and allows them to see their money grow. She said, “It gives them hope and a future.”
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