New Year Financial Resolutions

December 31, 2014 // Bucket Strategy Investing

Have you resolved to do a better job with your finances in 2015? Great! But keep in mind that people who make New Year’s resolutions tend to forget about them within a couple of weeks (once reality sets in that their goals were a bit too lofty). That’s why it’s important to 1) make sure that your financial goals are within reach and 2) set up a plan right now, while it’s still a top priority.

So what should you take care of right away? Here are a few things you could do right now, as the year gets underway, that may make it easier for you to stick with your plan for the duration:

Set up an automatic draft – Putting money aside that you don’t even see may be a good way to begin saving. You can’t spend money that you don’t have access to, and you may find that you don’t miss it in your budget. This feature is what tends to make 401(k) savings practical.

Take the employer match – If your employer’s 401(k) enrollment period starts on January 1, it’s a great time to make sure that you’re putting away enough money in your plan to at least receive the company match. That’s potentially free money, and you don’t want to miss out on it.

Create an emergency fund – You may never need to use it, but having a stash of cash or other liquid assets may give you peace of mind (in case a sudden need for funds arises at some point during the year). Whether it’s a job loss, a medical expense, or an investment opportunity that creates the sudden need for funds, keeping easily accessible money is always a good idea.

Create some tax diversification – It’s never fun to get surprises when your taxes are due. The start of the year is a great time to plan for next April so that you may control, to some degree, how much you might owe or, more importantly, how much you might be able to save.

Planning for the future can be complex, and plans can be challenging to implement. For more information on how to create a personalized planning strategy, call us today at 800-644-1150.

Information presented should not be considered specific tax, legal, or investment advice. You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal.

Investment advisor representatives of Lucia Wealth Services, a registered investment advisor, are also registered representatives of, and offer securities through, Lucia Securities, LLC, a registered broker/dealer, member FINRA/SIPC. Lucia Wealth Services and Lucia Securities, LLC are wholly owned subsidiaries of Lucia Capital Group.

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