Why it’s ‘super important’ to revisit your financial plan for 2022

This month of January does not only mark the start of a new year.

It is also the second anniversary of the first identified case of Covid-19 in the United States

At the time, the pandemic surprised most people. Now, many of our lives don’t look like they were before Covid-19.

People are now reassessing their retirement schedule, where and how they live and other future goals in the face of the new omicron variant of Covid-19 and the continuing unknowns.

“This is probably the greatest period I have ever seen in 30 years … [of] how many people are in a period of self-reflection, ”said Ted Jenkin, CEO and founder of Oxygen Financial in Atlanta.

For 2022, it’s “super important” that everyone redo their financial plan, Jenkin said.

“Now is a great time to reassess your goals, think about your priorities in life, and ask yourself, ‘Are you ready to make it happen?’” Jenkin said.

Uncertainties as the new year approaches have prompted clients to put their plans on hold, said Winnie Sun, managing director of Sun Group Wealth Partners in Irvine, Calif. Her message: “Control the things you can control,” she said.

The Covid-19 pandemic has prompted many people to reassess their relationships with work and career.

The question many are asking, counselors say, is, “Can I retire earlier?” “

People who wanted to retire at 65 now want to know if they can retire at 60, Jenkin said. And those who were planning to quit working at 60 now want to see if they can move on to 55.

“I think people are like, ‘I can have millions and millions of dollars in the bank, but it doesn’t do me any good if I don’t have my health and I use it to do the things that I want. want to do, ‘”Jenkin said.

Sun said she had a client who retired at a very young age – much earlier than her colleagues – and others may, too.

“I tell my clients that if you want to earn 10 years before retirement, that means we really have to hurry now and find other ways to generate income,” she said.

By choosing a side activity or self-employment and living on the bare minimum, you can successfully increase your retirement schedule, Sun said. It is also essential that you invest for the long-term growth that you will need.

“If you don’t want to make that sacrifice, then you’re going to have to work more years,” Sun said.

“There really is no magic formula,” she added. “It’s really just a plus and a minus.”

After spending so much time at home, many people are also considering big renovations or moving out completely.

Before you start this new home improvement project or take any stakes, assess what it will actually cost and how you will pay for it, Sun said.

Keep in mind that a large project could affect your ability to meet other goals, like funding retirement or saving for education.

For example, if you add an addition to your home, it may mean that you will have to work another year or two before you retire. Ask yourself if you are ready to make this sacrifice, Sun advised.

“You really have to rank what’s most important to you,” Sun said. “But also look at the long term, as well as the short term.”

Also, be sure to meet with a financial advisor to review your decision and make sure you’re on the right track, she said.

As new uncertainties related to Covid-19 loom, you may find yourself giving up on things you used to do, like traveling or attending large-scale events like concerts.

The upside is that it can be a great time to save some money, Sun said.

Take the money you don’t spend and set it aside in savings accounts or named investment funds for specific future purposes such as “vacation funds”, “future entertainment” or “new home” .

“You still have this exciting goal, but you give yourself a chance to grow, so the sacrifice becomes bigger for later,” Sun said.

By funding Future Joys, Sun said it helped her clients think positively as they watched their money grow. “It gives them hope for the future,” she said.