A financial plan unsupported by proactive reviews will become outdated and unhelpful. Around January each year, many Credent clients hear from their advisory team regarding the previous year’s performance and the coming year’s expectations. This check-in is a chance to consider your portfolio, recent or upcoming changes, and how your advisors are working on your behalf. What are the components of this kind of financial review?
As you take stock of your financial standing each year, focus your audit with this reference guide of tips, questions, and talking points.
A January Review is not the same as a Goal Review
At Credent, the financial review we perform around January is a portfolio review, a brief touchpoint meant to address last year’s outcomes, our outlook for the new year, and your top-of-mind changes or questions.
Each year, we also provide clients with a thorough review of their financial plan, called a Goal Review. Your Goal Review is an extensive analysis of where you stand, what you’re aiming for, and what needs to shift.
Both are foundational financial check-ins. The January portfolio review helps you start the year strong and sets you up for a successful Goal Review in the future.
Why Should You Participate in a January Financial Review?
At Credent, we believe the power of partnership is pivotal to your financial freedom, and a good partnership requires proactivity. With the right partner, you can understand more deeply, live more confidently, and adjust more quickly.
A proactive partnership requires regular communication and collaboration. If you have an advisor you haven’t heard from in years, how do they grasp what you need or what’s happening in your life? How do you know and trust what they are doing for you?
Starting the year with understanding, confidence, and hope about the economy, the market, and your ability to maintain your lifestyle and reach your goals alongside Credent will increase your chances of success, both now and in the future. It also reinforces the habit of staying in touch with your advisory team and prioritizing your financial goals
What to Address in a January Review
Here are the kinds of questions to think about for your January review.
1. What’s happening this year?
Think about the coming year. Do you have any notable plans or updates? It’s worth considering financial changes — a large purchase, a raise, a retirement — as well as the things that aren’t strictly financial — anniversaries, weddings, graduations, milestone birthdays, etc.
Insights about your year help us understand what matters to you and allow us to anticipate planning updates and strategies to implement.
Did you set any goals for the new year? You could share these with your advisor. If you haven’t set goals yet, review the aims in your financial plan and pick something that supports them.
2. What are your thoughts about last year?
How do you feel about last year? Did anything happen that you haven’t discussed with your advisor? Recapping your holiday season is a start, but if you can, reflect on the whole year so your opinion is not colored by just the past few months.
If last year was hard, be open about that. Good advisors commit to guiding you through all kinds of seasons, and knowing what’s weighing on you from the previous 12 months helps us support you for the next 12 months.
3. What are your biggest concerns or uncertainties heading into the new year?
Be honest about what’s bugging you. Is something in the market, economy, or news causing angst or keeping you up at night?
Your January review is also a good time to address worries about the personal milestones mentioned earlier. For example, do you want to give a monetary gift for your granddaughter’s graduation, but you’re unsure how much you can afford? Are you confused about taking RMDs for the first time this year? Do you need a reminder that you are set for your upcoming retirement?
In addition, ask questions. Was there something you wrote down earlier in the year with a note that said, “Talk to Credent”? Now is a good time to mention it.
4. How did your performance last year align with your expectations?
During a January financial review, your advisor may discuss portfolio performance. As they share, consider: How did your performance align with your expectations? Is there a strategy you have more questions about?
If you don’t have an advisor to review your portfolio with, you may not understand how your outcomes compare to benchmarks and what is needed going forward. Reach out to Credent to walk through your investments alongside an expert.
5. What can you expect for next year?
A final component of a January review is to discuss what’s coming. As any good financial advisor will remind you, no one has a crystal ball. However, at Credent, we do have experts who research the economy and market, study historical trends, and make data-driven, nuanced predictions.
If you’re a Credent client, know that our investment team ensures your portfolio is well-positioned to handle whatever the year throws at us. We continuously evaluate political, economic, and sentiment drivers and make informed decisions to keep your portfolio aligned with your long-term goals.
Three Final Considerations for Your January Financial Review
As you wrap up your January review, consider three final things:
1. Should you make any money moves?
Often, people spread their money among different institutions, but the transition to a new year is a good time to consolidate your funds. Consolidation creates simplicity and can have financial benefits. If you are confident in Credent’s ability to manage your wealth, consider making a move to capitalize on their expertise.
2. Is there anyone else you know who could benefit from a review?
While breathing a sigh of relief at the end of your review, you may think, “I wish so-and-so could feel this way about their finances.”
Recommend that your loved ones seek professional help to achieve their financial goals. The team at Credent would love to support them in the new year.
3. When is your next check-in?
Do you have your next review scheduled? Have you confirmed that this date works? Answer these questions now while you are thinking about your finances.
The Importance of Regular Financial Reviews
We talk often about the importance of regular financial reviews. That’s because we know the road to financial freedom is best traveled with eyes wide open. Don’t miss the satisfaction and significance of achieving your biggest goals because you won’t do the foundational work of reviewing your plan and portfolio alongside a trusted partner.
If you have questions about how to complete a January financial review, reach out to our team using the form below.