The last few years have seen the United States economy take a beating. Covid appeared, wreaking global havoc. We finally got past the pandemic just to see inflation rise to a rate not seen in decades. Then, Russia invaded Ukraine, leading to even more global instability and disrupting crucial supply chains. Protests are rocking nations such as Iran, Pakistan, and China. Amidst it all, many fear a recession is looming.
So, where does your retirement portfolio fit in all of this? Let’s look at how to revitalize your 2023 finances, so you not only survive the new year but come out stronger on the other side!
1. Figure Out Your Expenses
It may be time to batten down the hatches and reduce expenses. Carefully go over your balance sheets and cut out unnecessary expenditures. You don’t have to cut them all out – just a few may help. An excellent place to start is to go through your monthly subscriptions in your smartphone settings or on your TV and analyze your utility bills. Perhaps you can wear a sweater, for example, instead of turning up the heat.
A good rule of thumb for personal finances is the 50/30/20 rule, with 50% of post-tax income going to needs, 30% going to wants, and 20% to savings. By cutting down expenses and perhaps allocating a higher percentage to savings, you’ll end up in better financial shape if things head south.
2. Extinguish Your Debt
The events currently happening around the world are quite unprecedented, with the financial and technological While there may be a place for investing if you have debt, most of the time, it pays just to wipe it out as fast as possible. If you have a credit card with a 9 percent interest rate, you’re paying a banker his yearly salary instead of paying your future self. Consolidate as much debt as possible and make extra payments so those high-interest rates can’t cut so deep. The faster you can eliminate your debt, the quicker you’ll be able to start building a nest egg, and time is definitely of the essence when it comes to investing!
landscape changing so significantly that you may not even recognize it. You need an advisor to help guide you through the complexities of this ever-changing financial-services world. An advisor that will build a long-term relationship with you, one that you can trust to help navigate and overcome these challenging new obstacles. Our tax expertise coupled with our personalized touch and sincerity is what sets us apart from other financial advisory firms.
3. Go Over Your Savings Plan
Our team is the same exact one you know and love from the Accounting side. Douglas Walters, our Managing Partner, holds a Series 65 InvestmenNow may be a good time to reassess your risk tolerance and capacity to better realign with a changing economic environment and a more conservative investing profile. You can accomplish this with a gradual portfolio rebalancing by placing more funds into bonds rather than stocks. Alternatively, you can utilize a tax-loss harvesting strategy to eliminate the underperformers in your portfolio and use the tax savings to reinvest in funds in line with your new plan.
t Advisor license. He combines his accounting expertise and industry experience to provide best-in-class financial services. Working alongside Douglas is our Director of Wealth management Joshua Pisa, who also holds a Series 65 license. He has 15 years of financial industry experience, including a long stint at Ernst and Young (also known as EY).
Of course, a more conservative approach may not be suitable for you, especially if you’re young. Instead, you may want to take advantage of depressed stock prices to pursue an aggressive, growth-based investing strategy.
4. Optimize Your Taxes
Optimizing your tax deductions will give you more money to invest or reduce your debt in 2023. It may bump you down a tax bracket, leading to even more significant savings. We went over some great tax tips, along with the tax-loss harvesting strategy I mentioned above.
5. Partner With a Financial Advisor
A financial advisor knows all of the ins and outs of the investing process and can create a plan capable of weathering any economic downturn over the long term. Plus, they can help you determine realistic goals according to your desires and possibilities. Plus, you’re more likely to stick to your objectives with a financial advisor managing your investments and always available to give guidance in times of economic anxiety when your confidence may be shaken.
For a free consultation, click the button below. We can offer a robust investment plan combined with tax advice to create a comprehensive picture of your present and future finances.
Doug is the Managing Partner of Walters Strategic Partners, LLC, a licensed Registered Investment Advisory firm.
Doug is a licensed Certified Public Accountant (CPA) in the state of Florida and holds a Series 65 Investment Advisor Representative securities license. He is also a member of the AICPA. With over 28 years of experience as a CPA, he believes investment decisions should be based on decades of peer-reviewed research rather than relying on the latest “hot tip” from media outlets. This empirical evidence puts the science of investing to work for his clients.
Jose M. Joia is a Wealth Advisor at Walters Strategic Advisors, LLC. As a member of the team, Jose’s responsibilities involve comprehensive wealth management, planning and customer service. He has over 6 years of industry experience specializing in planning and solving unique issues his clients encounter. Jose has experience serving individual clients, business owners and non-profit organizations.
Joshua M. Pisa is the Director of Wealth Management at Walters Strategic Advisors, LLC. As a member of the firm’s Wealth Management team, Josh’s responsibilities involve comprehensive wealth management, tax consulting, planning, and compliance services. He has over 15 years of industry knowledge specializing in solving the unique issues his clients encounter. Josh has experience in wealth management and individual taxation, trusts and estates, family partnerships, and other privately held businesses.
All of your assets are controlled by you and held in your name by our independent custodian, Charles Schwab or Fidelity Institutional. I receive no compensation from them. You can check your portfolio 24/7 on their website. I will have limited power of attorney to execute transactions on your behalf.
We are a Florida-based tax-focused fiduciary financial advisory for individuals and families seeking customized long-term, tax-efficient wealth management solutions.
3277 Fruitville Rd # E
Sarasota, FL 34237
Financial Advisors do not provide specific tax/legal advice and this information should not be considered as such. You should always consult your tax/legal advisor regarding your own specific tax/legal situation.
Separate from the financial plan and our role as a financial planner, we may recommend the purchase of specific investment or insurance products or account. These product recommendations are not part of the financial plan and you are under no obligation to follow them.
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