A New Year is Here

A new year brings new opportunities, but often, those opportunities come with challenges, as well. It seems inflation is taking its toll on many when it comes to purchasing everyday items, but not to the point of needing to make major sacrifices. The inflation of everyday goods may be attributed to an increase in wages, in addition to other factors. The bulk of our economic problems seem to rest in our ability to hire and retain good employees, which is a positive negotiating tool for people willing to work.

In my conversations, the other economic headwind is still supply issues. With COVID-19 making a resurgence lately, it seems likely we will continue to see these problems exist for at least the short-term.

However, 2021 was a great year for many when it comes to 401K balances and other investments. Discussions I have had with stock market experts seem to point to another positive year for 2022, but the reality is, no one really knows.

I do know this: Nothing is more important to your retirement plans than actually having a plan. Often, current conditions have an emotional affect and can cause people to deviate from a good plan. For example, people may stray from their plan by putting all of their money in something that is doing really well or having too much risk in their portfolio because “it will always come back.” Don’t let this happen; start with a discussion with your significant other about what you want to accomplish in the next five to 10 years, as well as what you want your retirement to look like. Then, work with a financial professional who can help make this come to fruition.

Part of this process should be accessing your risk tolerance level — essentially, the amount of volatility you can handle when things are really good or bad. You should also look at your goals, or the amount of retirement income needed. Finally, think about your objectives, such as meeting shorter-term goals like college and car purchases.

It's easy to become complacent and think you have it all figured out, but be disciplined, and stick to the plan! Here’s to a happy and blessed year.

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Advisory services are offered through Innovative Financial Planners, LLC, an Investment Advisor in the state of Missouri. Insurance products and services are offered through Innovative Insurance Consultants, LLC, an affiliated company.

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