As I reflect on over 28 years of helping individuals with money management and financial planning, I want to share some insights for the New Year. These aren’t ranked in any particular order, but they’re worth considering as we step into 2025. Many people make New Year’s resolutions, so here are a few financial resolutions to think about.
Evaluate Your Spending and Income
It’s natural to think about your daily, weekly, or monthly spending and income. If your checking account is running short or going negative each month, this may indicate an income issue—either insufficient revenue or excessive spending. Let’s discuss how to address this in the New Year. Together, we can work on being good stewards of the resources we have and explore adjustments to help you feel more confident about your financial future.
Market Expectations for 2025
The stock market delivered impressive returns in 2023 and 2024, but it’s unlikely this trend will continue at the same level. In fact, while 2024 saw very few down months, we may experience more fluctuations in 2025.
It’s important to stay prepared. While I’ll continue making strategic adjustments to keep portfolios on track, it’s unrealistic to expect the double-digit returns we’ve enjoyed over the past two years every year. This doesn’t mean making drastic changes or becoming overly conservative—it’s simply a reality check. Markets have their ups and downs, and some years may be less favorable.
Safe Withdrawal Rates
As we move into 2025, I’ll be revisiting withdrawal rates. Even in strong market years like 2023 and 2024, a safe withdrawal rate remains around 4%. Exceeding this rate can jeopardize the longevity of your investments and the ability to maintain consistent monthly payments. While this may not impact you immediately, it could have long-term effects. My goal is to ensure you’re prepared and confident in your financial strategy moving forward.
Moving Forward Together
These are just some of my thoughts as we enter 2025. I’m committed to providing you with a robust investment program and optimizing your portfolio using the best tools at my disposal.
Dawn and I are here to help you navigate life’s financial challenges. We face many of the same issues you do, so don’t hesitate to reach out. Chances are, we’ve been through it ourselves and are happy to share our experiences. Wishing you a successful and fulfilling 2025!