As we enter 2020, this could be the opportune time to set yourself up for a financially healthy new decade. After getting in some solid time on holiday travel, spending time with friends and family, and just relaxing away from the office, now its time to get financial orders in check. Here is a list of items that may help you do so.
1. Create a financial plan
Is your 401k enough? Should you invest in a Roth or traditional IRA? What will my portfolio look like in 10 years based upon my current spending? Sustainvest offers clients free financial planning to help you set yourself up for the future you want. By using the financial planning program MoneyGuidePro, we are able to help clients gather data on their goals and expenses along with their assets and income sources to establish a plan of
action to help fund their futures.
2. Be sure that your portfolio is ESG screened and you aren’t funding big oil
You volunteer, make responsible purchasing decisions, and give to environmental nonprofits, but is it possible your investments are undermining those efforts? How can you ensure that your financial investments aren’t hurting the planet? Sustainable and Responsible Investing (SRI) and Impact Investing offer ways to invest in businesses that are doing good while securing your financial future. Review your holdings. Pick greener mutual funds and ETFs. There are now so many SRI funds available that there’s sure to be one that meets your investing style .
3. Top off your emergency fund
Being invested for the long term is great, but just as important is to be sure you have some cash on the sidelines to pay for unexpected issues. Though there is no exact amount that should be placed in a fund due to one’s lifestyle, work situation, and age, the standard amount is usually 3 to 4 months worth of expenses.
4. Does your allocation match your risk profile and timeline
It can’t be stressed enough. If you aren’t sure if you have 50% in stocks or 90% in stocks, this needs to be checked on. After having a year in which returns in the S&P500 were over 25%, most investors allocations are going to be quite different than a year or two ago. If you work with an advisor, check in with them to see how they can get the allocation in line with your profile.