There are constantly evolving ways to save money and grow your wealth, and the best financial planning guidelines are essentially a moving and multifaceted target.
The financial planning process is more than just identifying investments that will lead to short-term or long-term benefits. Instead, personal financial planning includes these fundamentals of the investment management process while identifying other opportunities in your finances to reduce spending and save even more money over time.
An expert in financial investment management and financial planning service can help you examine all aspects of your finances to identify the best paths toward long-term gains. Saddock Wealth is a leader when it comes to trusted financial guidance and can serve as your personal investment company for examining opportunities now and well into the future.
In the meantime, having an overview of the different options and opportunities at your disposal is helpful. If you haven’t examined the financial planning process, consider some tips that can result in hefty returns.
Review Your Interest Rates and Your Debt
The cost of borrowing has increased significantly over the past several years, so if you have taken out a recent loan for a car, house, or other larger expense, this may be an excellent time to pay off outstanding debt. Interest rates on debt can eat away at your savings. Therefore, when it comes to personal financial planning, identifying any debts and mitigating any returns on your savings or other investments is a solid first step in the process.
On the flip side, if you have any emergency funds in CDs or savings accounts, it might be a good time to take stock and see if there are opportunities for higher returns. Interest rates have increased across the board, so you may be able to earn even more while still having access to your in-case-of-an-emergency nest egg.
Protect Your Assets and Diversify
The market has reached attractive highs in recent years, but this doesn’t mean that this steady increase is guaranteed to last. There will be a market downturn at some point, so now might be a great time to examine your investments and diversify as needed.
The most substantial investment portfolios have investments in a wide array of buckets to protect your assets from sudden significant shifts, like a global market downturn. Look at bonds, CDs, and even real assets like real estate, and examine your portfolio to ensure your assets are diversified and well-protected, no matter how the world changes.
Look Into Your Tax-free Savings Options
The benefits of the Tax Cuts and Jobs Act are set to expire at the end of 2025, and beginning in 2026, most tax brackets and federal income tax rates will likely increase. With this in mind, now is a good time to distribute as much money as possible into tax-free investments and accounts until the tax rates climb.
Roth IRAs are a great starting point when considering your options. Also, if you don’t have a Roth IRA, you may want to consider a potential Roth conversion. A Roth conversion occurs when you take existing funds in a traditional IRA or 401(k) and pay taxes now to convert these funds to a Roth IRA.
Paying these taxes upfront may seem like a financial burden, but in most cases, it can save you much more on taxes in the years ahead. Again, consulting an expert financial planning service provider like Saddock Wealth is the best way to identify these types of opportunities and to determine if they are a good option for your unique financial situation and long-term goals.
Partner with an Expert in the Financial Planning Process
The best thing you can do when it comes to financial planning is to have expert guidance behind the scenes that can help you map out the best ways to save money and earn maximum returns in the long run, while reducing your tax liability.
It’s perfectly understandable if you don’t know all the intricacies of detailed personal financial planning, and you can naturally save and earn more when you have a financial expert by your side.
This is where Saddock Wealth shines. Reach out to our professional team today to start the discussion. Let’s examine how you can optimize your savings while reducing your expenses across the board. With a guiding hand, you can secure financial peace of mind for the immediate future and for many decades to come.