You’ve already conquered the basics like saving up a sufficient emergency fund, paying down debt and building retirement savings. But that doesn’t mean you’ve done all you can to secure your future financial health. Consider these financial resolutions for 2022. 

New Year’s Resolutions: Some people love them, and others want nothing to do with them. But the start of a brand new year is as good a time as any to make sure you’re set to meet — or exceed — your financial goals. 

Resolve to check in on your budget

We know — budgeting is Personal Finance 101, and you scored high marks in that area a long time ago. But your finances can still benefit from a budget check-in. Make sure you understand where every day-to-day spending penny is going or where you have those savings invested. Project 2022 big-ticket expenses (such as home repairs or college tuition) so you have the funds in relatively liquid and safe investments, ready when you need them. 

Resolve to review your financial plan

A financial plan is never a set-it-and-forget-it proposition. It’s important to review it and adjust it at regular intervals. That’s because as you get closer to retirement, your financial picture changes — everything from your tax liability to your risk tolerance to your job status and family situation has a bearing on the shape your plan takes. 

Resolve to optimize your portfolio

This goes right along with your financial plan, of course. Review your overall investment mix with your wealth advisor, and make sure it’s aligned with your long-term goals, risk tolerance and time horizon. Rebalance your portfolio as needed. 

Resolve to save more

We hate to say it, but all the money in your retirement accounts isn’t going to go as far during your retirement years as it would today. If you’re in a position to do so, make sure you are stashing away all you can. One way to boost what you’re already doing is by making catch-up contributions to your 401(k) or IRA after you turn 50. These contributions allow you to save above and beyond the standard annual contribution limit.

Resolve to update your life insurance

Your life changes, and so should your life insurance. Life insurance policies can help protect your family’s financial future, but if you purchased your policy five or 10 (or more) years ago, it may not offer the right amount of benefits for your current situation. Review and assess your policy about once a year, and especially when you experience major life changes, such a job or family status change. 

Resolve to make sure other insurance types are adequate

You may have health insurance or other types of insurance through your employer, but as you get older, it may make sense to add a policy here or there. You may also want to start considering a long-term care policy after 50, when such a policy is most cost-effective (it’s much more expensive after 70). If you don’t have short- and long-term disability insurance with your employer, look into an individual policy. If you’re a business owner, make sure your business is properly insured. 

Resolve to protect your legacy

Having an estate plan in place protects your legacy for your heirs. Even if you already have one, it’s a good idea to review it routinely to make sure it represents your wishes and the best interests of all involved. Review your beneficiary designations, update your will, and ensure you have durable powers of attorney in place. If you have a large and complex estate, discuss a revocable living trust with your wealth advisor or attorney. 

Remember, you don’t have to tackle all these and other financial resolutions alone. Ironwood Wealth Management is here to help. Contact us today.