A Basic Look at Year End Financial Review

How did you fare this year? Evaluate it before you look at 2015.

16:21 30 December 2014

It is time to get down to business. Yes, get cracking on your annual financial review and set financial resolutions for 2015. Today’s post is a roundup of all important things to consider for better financial planning.

Cash flow planning/Emergency fund?

How did you perform this year, financially? Did you incur any unexpected expense that forced you into making any unplanned withdrawal?  Did you take on any unanticipated debt? Have you stashed away enough funds for your long term financial goal? You really do not want to start off 2015 on a bad note.

Investment

Is your allocation in current asset at the level of your target? For instance, if your target is to allocate money in say 65% stocks and 35% savings certificates, but your investments, say, have moved to 55% stocks and 45% bonds during the year, it is now a good time to rethink your allocation strategy and restore balance in to your target allocation.

Planning for retirement

Have you funded your retirement savings account as planned this year? How are you going to improve your contribution towards retirement savings this next year?

Tax Planning

Have you made full advantage of the exemptions and allowances offered by the Government? Did you reduce your taxable income by, say, making payments to charity as gift aid or pension contributions?

Hire a financial advisor if there is a need. It is not that most Britons do not need any kind of financial advice as such, but a good majority of financial advisors charge a lot and recommend products that are largely expensive for the value they bring. Assess your present financial situation, and see how far you have to go to meet your financial goals, without taking too much of risk. This will give you a better idea of whether or not you need the services of a financial adviser.