How to be Financially Confident in 2023

As we start a new year, it’s a good time to ask yourself: Am I on track to reach my financial goals? What can I do to get on track and stay on track in 2023?

Here are a few tips you can take advantage of to become financially confident in 2023.

1. Understand Your Personal Money Mindset

Understanding your personal money mindset is an important first step on the path to feeling financially confident. At Quantum Financial Advisors, we are client-focused, goal-driven financial planners who can help you identify your financial mindset. Before diving into any numbers and analysis, we ask a series of reflective questions to help ensure your values and beliefs are aligned with your money, such as:

• What is most important about money to you?

• Why is that important to you now?

• How is that aligned with your short- and long-term goals?  

These questions can be particularly helpful for couples, especially if they have never heard each other articulate their hopes and dreams or describe the deeply held values that may drive their decision-making. Once you know which values are shared and which are not, we can help ensure your desired values are reflected in your financial decisions.  That balance may shift over time, so we also look out into the future and check in regularly to help you design changes to your plan each year. 

2. Review your financial plan

So now that you have your values and goals solidified, it is time to turn them into a financial plan. As a noted futurist wrote, “there is no data for the future” and as goal-focused planning-driven advisors, we believe that during times of uncertainty the best action we can take is to control what we can control. By creating a written financial plan, you’ll have a roadmap for what you’d like to see happen, and you can determine which actions are within your control to achieve your desired future.

At Quantum, we start all our plans with a base plan scenario, which paints the picture of your current situation. From there, the Quantum advisor will thoroughly assess your base plan and develop additional scenarios as desired. This approach will help you not only understand what the numbers mean for you, but also how changing goals and situations may impact your plan in the long term. While projections are not predictions, we find that having a solid plan enables you to make important financial decisions, such as how to invest your portfolios to match your financial goals, such as buying a new house, starting a company, or taking that dream vacation. Your plan also highlights opportunities to maximize your wealth, whether that is contributing to a donor advised fund, saving into a health savings account, or completing a Roth conversion.

In addition to scenario analysis, we also stress test each plan using a statistical model known as a Monte Carlo simulator, which runs 1,000 scenarios to determine if any adjustments need to be made to achieve a statistically successful plan.

Gathering the information needed to create your financial plan, such as end-of-year statements from your bank, brokerage and mortgage accounts, can also save you the headache of having to go back to find important forms and information when tax time heats up in March. This gives you and your advisor the information needed to kick off the new year with a strategic financial approach for 2023.

3. Work to Fill Gaps

Now that you’ve created your financial plan, reviewed the various scenarios, and identified the steps it will take to achieve a statistically successful plan, it is also important to fill in potential gaps by optimizing other areas of your overall financial picture.

Two of the key areas to review are insurance and estate planning. A new year is a perfect time to review your insurance policies and ensure that the limits, coverage, and rates still make sense for your lifestyle. Review your estate plan to help ensure that your loved ones get what they need in the event of an emergency and take stock of any recent changes in your personal life that may require updates to these documents. Also, double-check that all beneficiaries listed in life insurance and retirement plans are accurate.

Planning for the long term doesn't have to be complicated and you can give yourself peace of mind by ensuring your financial life is in order. Proactive financial planning allows you to feel more confident when making decisions that will improve the quality of your life, and reviewing your financial situation regularly allows you to stay on track with your financial goals. Our mission at Quantum Financial Advisors is to help you navigate the financial complexities of life so that you and your loved ones can thrive.

Here’s to a prosperous year ahead!

DISCLOSURE: Quantum Financial Advisors, LLC (“Quantum”) is an SEC registered investment adviser with its principal place of business in the State of California. Quantum may only transact business in those states in which it is notice filed or qualifies for an exemption or exclusion from notice filing requirements. The article is for educational purposes only; and contains the opinions of the author, which are subject to change, and should not be considered or interpreted as a recommendation to participate in any particular trading strategy or deemed to provide investment recommendations, and it should not be relied on as such. Any subsequent, direct communication by Quantum with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

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Investments involve risk and, unless otherwise stated, are not guaranteed. The Information was based on sources we deem to be reliable, but we make no representations as to its accuracy. Past performance is not indicative of future results. Readers of this information should consult their own financial advisor, lawyer, accountant, or other advisor before making any financial decision.