As the new year begins, it’s the perfect time to take a fresh look at your finances and set yourself up for success. Whether you’re growing your wealth, preparing for tax season, or ensuring your financial goals stay on track, a little preparation now can make a big difference in the months ahead.
Here are five essential steps to help you start the year strong:
1. Set or Update Your Financial Goals
Start the year by defining or revisiting your financial goals. What do you want to achieve this year and beyond?
- Identify short-term goals, such as building an emergency fund, saving for a vacation, or paying off credit card debt.
- Focus on long-term goals, like saving for a home, planning for retirement, or funding your child’s education.
- Break large goals into actionable steps to make tracking progress easier throughout the year.
Having clear, achievable goals gives you a roadmap for financial success and helps you stay focused.
2. Review Your Investment Account Contributions
Once your goals are set, it’s time to ensure your investment contributions align with them.
- Review your contributions to accounts such as TFSAs, RRSPs, or other registered savings plans.
- Maximize your annual contribution room to take advantage of tax benefits and compound growth.
- Adjust your savings strategy as needed to stay on track with your short- and long-term goals.
If you’re unsure where to focus your contributions, a financial advisor can help you create a strategy tailored to your needs.
3. Prepare for Tax Season
Getting ahead of tax season now can save you time, stress, and money. Key steps to prepare include:
- Organizing financial documents like investment statements, tax slips, and receipts for deductions.
- Reviewing contributions to accounts like RRSPs, which can help lower your taxable income.
- Identifying credits and deductions you’re eligible for, such as investment-related expenses or childcare costs.
Proactive tax planning ensures you optimize your return and avoid last-minute surprises.
4. Review Your Insurance Coverage
Financial success isn’t just about growth, it’s about preserving what you’ve built. Take time to reassess your insurance needs:
- Life insurance: Does your policy cover your family’s financial needs in case of the unexpected
- Health and disability insurance: Ensure you’re covered for medical expenses and income loss.
- Critical illness insurance: This provides financial security in the event of serious health issues.
Life changes, such as a new job, growing family, or significant financial milestone, may require updates to your coverage to keep you protected.
5. Check In with Your Financial Advisor
The new year is the perfect time to reconnect with your financial advisor and align your financial strategy with your goals. During your check-in, you can:
- Review your investment portfolio and make adjustments if necessary.
- Discuss life changes, such as a career move, family additions, or upcoming major expenses.
- Get advice on optimizing your contributions, reducing taxes, and reaching your financial targets.
If you don’t currently have a financial advisor, finding one can make a significant difference. For practical tips, check out our previous blog, How to Choose a Financial Advisor.
Start the New Year with Confidence
A little preparation at the beginning of the year can set the stage for financial success and peace of mind. By reviewing your investment contributions, planning for tax season, and connecting with a financial advisor, you’ll be well-positioned to achieve your goals.
Whether you're a current client or someone looking to take the next step toward financial success, Alpen Investment Advisors is here to guide you every step of the way. Based in North Vancouver, our team, led by Jon Alpen, brings over 18 years of experience in helping clients grow, preserve, and navigate their wealth. With expert guidance, tailored solutions, and a steadfast commitment to your success, we are dedicated to supporting your unique financial journey.
Reach out to us today at jonathan@alpenia.ca to start or continue building your financial future with confidence and clarity.
