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Review your wealth goals and objectives in the New Year

A New Year is the perfect opportunity to review your personal wealth goals and objectives and consider whether any changes are needed. Taking some time at the start of the year to review your situation allows you to take a fresh and disciplined look at whether your current wealth planning strategies remain suitable.

At the start of the process it is important to think about the various goals that you are trying to achieve with consideration given to how much money is needed to achieve the goal, the time horizon of the goal and the willingness to take risk to meet that goal. Time should be spent developing an asset allocation that will help meet those goals. Then, once a strategy is implemented it is important to regularly (once or twice a year) review your current financial targets and the time horizons associated with them to determine if they are still appropriate. Some questions to consider:

• Do you have any new goals that haven’t previously been considered?
• Are the amounts you previously considered to meet your goals still appropriate?
• Have any time frames changed for meeting your various goals?
• Have you met any the assumed savings targets for meeting your goals?
• Have you received any inheritances or gifts that dramatically change the overall level of assets available to meet your goals?
• Are you on target to pay off any outstanding liabilities?

Once you know this, you can work out whether your assets are positioned properly to meet your goals. If you are meeting your growth rate targets then focus can be placed on any rebalancing needs and overall tax-efficiency. If you are falling short of your growth targets, you could consider whether individual investment changes, an increase in your overall exposure to growth assets, an adjustment of your goal or an increase in your level of current savings is needed. If you are exceeding your growth targets, consideration can be given to whether you should decrease your exposure to growth assets or perhaps explore other goals.

Undergoing a periodic review of your financial life helps you to ensure you remain on track to meet your goals and identify any areas in need of adjustment. The probability of meeting your future goals shouldn’t be left to chance. And, what better time is there to review your strategy than at the beginning of a New Year.

For more wealth planning tips and tidbits from MASECO read our 39 Steps to Smart Living in the UK.

Risk Warnings and Important Information
The above article does not take into account the specific goals or requirements of individual users. You should carefully consider the suitability of any strategies along with your financial situation prior to making any decisions on an appropriate strategy.

MASECO LLP trading as MASECO Private Wealth is authorised and regulated by the Financial Conduct Authority, the Financial Conduct Authority does not regulate tax advice. MASECO Private Wealth is not a tax specialist. We strongly recommend that every client seeks their own tax advice prior to acting on any of the strategies described in this document.

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