Patriot Wealth - January 2019



PHONE | 919.322.4113



The new year is a perfect time to start fresh and look for new goals. As the calendar turns, you can take stock of the previous year and evaluate all the aspects of your life: the physical, spiritual, interpersonal, and of course, the financial aspects. Unfortunately, while the potential for new opportunity abounds, many people see their resolutions fall by the wayside. Gym memberships go unused, relationships dissolve, and spending goes off track. Although some goals might require a specific skill set that is foreign to you, money management is something everyone has the skills to do. The most common mistake with a financial plan is treating it like it’s a gym membership. It’s not optional, to be used as needed — it’s a guiding path for your future. I’m a firm believer in goal-based financial planning and how it can enhance your chances of long-term success throughout your retirement. Many individuals have their objectives derailed because they set the bar too high and leave it there. There’s nothing wrong with being ambitious about your money, but you need to harness that desire with attainable stepping stones; otherwise, your monetary goals are no different than the unachievable weight loss targets many resolutioners have. Small incremental feats are the key to accomplishing any goal you set, especially financial ones. If your objective is to live an abundant retirement, what little steps can you take to reach that goal? Savings-based planning can help you stockpile cash, but what’s the endgame with it? Each dollar you save needs to have a plan, but just as an endgame is necessary, so too is using that money along the way to help you stay focused. Stepping stones like traveling, vacations, and second homes all help you remain engaged with your retirement lifestyle before actually settling down. The key to making sure this stays afloat is to have a contingency plan for when things go wrong.

Just as resolutioners struggle with their goals after a few weeks, so do many financial plans. These often come in the form of adverse life events, such as home repairs, car maintenance, or hospital bills. It’s essential to have a secondary plan in place so that when your goal meets roadblocks, you know how to overcome them. The best practice for many is to develop an emergency savings fund. If something goes wrong, you can draw from this and not completely derail your goals. We’re in a financial environment where current tax rates are favorable, and that leaves many investors primed to make adjustments that will best serve their financial future, and that leaves many investors primed to make adjustments that will best serve their financial future. Many clients are considering a conversion to a Roth IRA to fit their retirement goals better, but multiple variables surround that decision. Age, lifestyle, and income are all factors, but it’s important to make sure you effectively tax plan throughout your life. With small stepping stones and proper advising, I’m confident everyone can find a path to retirement that suits them.

–Wes White

Investment Advisory Services offered through Retirement Wealth Advisors (RWA), a Registered Investment Advisor. Patriot Wealth and RWA are not affiliated. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

PATRIOT WEALTH | 919.322.4113 | P1

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