What To Do In 2023?
2022 was a year of ups and downs, especially for the markets. As we have entered 2023, you should consider several financial to-dos.
With inflation running high in 2022, you likely spent more than expected on restaurants, groceries, utility bills, fuel, and more. A priority for 2023 may be adjusting your spending to reflect these rising costs.
In an effort to reduce inflation, the Federal Reserve raised short-term interest rates several times in 2022. That may have translated to higher monthly payments on some of your loans and debts. As a result, it may be a good time to check up on your monthly expenses. A typical family has some monthly expenses that may be tied to fluctuating interest rates, including credit cards. It’s easy to lose track of how much your monthly expenses are increasing due to interest expenses.
If you had to tap into your savings in 2022, it might be time to top it up. Your emergency savings should generally cover 3-6 months of expenses. An emergency account is designed to help you pay for unexpected expenses, so you won’t have to sell an investment at an inopportune time.
It may be an excellent time to review your retirement contributions strategy. Ensure you understand your employer-sponsored plan's role in your overall retirement strategy.
The new year is an excellent time to reflect on any changes that might have occurred in your life, such as births, deaths, and divorce. These types of changes can affect your beneficiary assignments on your retirement accounts. Updating your beneficiary forms on all your accounts is critical.
We hope you had a wonderful holiday season and are looking forward to what the new year has in store. The DFG Team is always here for you and welcomes the opportunity to discuss these and other financial to-dos for 2023. Let's stay on course and walk the path to retirement and beyond together.
David S. Dixon, CFP®