“If you're like many of the people I meet, you just made a New Year's resolution. And your resolution was most likely about something you want to do more of, less of, or differently. Now, if your resolution has to do with your body, I encourage you to share it — right away — with a friend or mentor, to increase the odds that you will act on it and succeed”, explains Vicky Schroebel, Director of Business Development at MFS.
However, if the resolution is a financial one (spend less, save more, etc.), Schroebel recommends to work with the financial advisor. “There are many financial New Year's resolutions that I hope you might make over time, but let's start with the most important one”.
Take control of the four Ps for a successful financial future:
- Progress: At least annually it is necessary to review the progress towards retirement savings (or retirement income) goal. This means define or confirm the goal(s).
- Protect: “At least annually I will ask my advisor to review what we are doing to protect against the greatest risks to my retirement income, which include taxes and inflation, among other risks”, says the MFS´expert.
- Plan: Review annually the plan for the year, focusing on how maximize what you are setting aside for your future needs.
- Portfolio changes: It is key make changes to the portfolio/plan based on the above three resolutions, rather than emotionally responding to short-term market swings.
“Take control of your resolutions by seeking support!”, concludes.