With just a few weeks of 2023 left, now is a great time to perform an end of year review of your finances to see how you did this year, what you can achieve before 2023 draws to a close and how you can do better in 2023. Here are ten important questions to ask.
Why carry out an end of year financial review?
The end of a year is an opportune time to reflect upon, reassess, and recalibrate your financial planning. 2023 has not been an easy year for investors with inflation and interest rates dominating the economic landscape as well as a regional banking crisis and rising geopolitical tensions with ongoing wars in Ukraine and the Middle East.
In spite of the lows, there have been some highs. And if you’re disappointed with your investments this year, do remember that these highs and lows are part and parcel of the cyclical economic cycle.
Carrying out an end of year review will show you what you have done right in 2023 and where you can make adjustments to improve in 2024. We’ve put together this handy list of 10 questions to help you in conducting your end of year review.
10 questions to consider in your end of year financial review
- Did I achieve my financial goals in 2023?
If you set goals at the start of the year, take a look back to reflect on whether you have accomplished them.
- How did my investments perform in 2023?
It’s imperative to analyse the performance of your stocks, shares and funds and check whether you are on track to achieve your investment goals.
- Do I need to rebalance my portfolio?
While generally we recommend a buy and hold approach to long-term investing, occasionally you will need to rebalance your portfolio. If you’re concerned about how your investments have performed in 2023, book a chat with your financial adviser to discuss whether any adjustments are necessary.
- Have my expenses changed?
Take a look at your expenses over the year and evaluate any fluctuations. Can you optimise your expenditure in 2024?
- Is my retirement plan on track?
As the year draws to a close, it’s a perfect opportunity to reevaluate your retirement goals and ensure that your financial plan remains aligned to them. Consider revisiting this with your financial adviser for a comprehensive assessment.
Are there any loose ends you’ve been meaning to tie up with regard to state pension eligibility, lost pensions or employer-funded pensions? Can you take action before the end of the year, or make it a resolution to sort them out in 2024?
- Have there been any tax changes that could affect me?
Changes in tax laws can have a big impact on finances. You need to ensure that you keep abreast of major changes in the jurisdictions in which you earn, save and invest in order to adapt your financial strategy accordingly. Set aside a time to research any major changes in 2023 that could require action on your part.
- Am I adequately insured?
In financial planning, wealth protection is as important as wealth creation. This December, go through your policies to check that they are still fit-for-purpose with adequate cover. Often insurance prices creep up so you may want to review your policies with your adviser or broker to check that you continue to benefit from the best possible rates. Finally, if you have experienced a major life change this year such as a birth, marriage, divorce or death in the family, you may need to increase cover and/or update beneficiaries.
- What are my plans for saving in 2024?
Are you saving efficiently? You’ll find some tips on how to save here. If you feel that you could improve your savings habits, make 2024 the year you make positive changes that will have a positive impact on your financial future. Here are 35 money-saving suggestions.
- Do I need professional financial advice?
If you don’t have a financial adviser, perhaps now is the time to take the leap? Here at Infinity, we believe that everyone can benefit from professional advice, however much they earn and whatever stage of life they are at.
A financial adviser brings enormous benefits including:
- Personalised advice tailored to your situation
- Professional expertise and knowledge
- Experience of cross-border financial planning
- Long-term vision and accountability
- Accurate risk assessment
- Objective insights
- Access to a network of partners including investment managers and insurers
Infinity has been advising expatriates in Asia for 20 years. We are very familiar with the cross-border financial planning issues they face and provide bespoke solutions to complex issues. If you aren’t already working with us, why not arrange an informal chat to see what we can do for you?
A leading provider of expat financial services and wealth management services across Asia.
