No one knows what will happen with markets in 2023. That uncertainty can feel out of control, but there are things you can control and steps you can take:
1. Assess where your portfolio stands. An annual check-in with your financial advisor about your portfolio is a good practice, mainly because our lives change. As we age or as life circumstances evolve, we should reevaluate our risk tolerance. Taking stock of the previous year’s happenings is key. For example, a new child, a new job or a change in retirement plans may necessitate a change in your investment strategy.
2. Conduct a cash-flow review. Tracking your spending and savings is one of the most important steps to building a sound financial plan. Be sure to review your projected saving and spending targets for 2023. An excellent place to start is by revisiting where your money went in 2022.
3. Make sure you’re saving enough to meet your goals. Knowing if you are contributing enough to retirement accounts is crucial. One rule of thumb for a starting point is the 4% withdrawal rule. This formula states that in retirement, you can withdraw up to 4% of your final account balance sustainably. Sticking to this withdrawal rate gives you a high probability of not outliving your money during a 30-year retirement.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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