What Gets Measured, Gets Managed

In today’s Finance Pulse, gain insight into how:

• Smart financial resolutions can set the stage for a year of prosperity, with a focus on tackling credit card debt and optimizing your savings strategy.

• A shift to year-round financial planning enhances the client-advisor relationship, building a foundation of trust and proactive wealth management.

• Prioritizing tax planning with a financial advisor can be a game-changer, especially with potential tax rate increases on the horizon, impacting your long-term financial health.

Each of these articles is penned by members of Forbes Finance Council, key luminaries shaping the future of finance.

New Year, New Finance Goals 🎉

As we step into a new year, it's time to sharpen our financial strategies.

Here's a quick rundown of three key personal finance resolutions to consider:

🔄 Avoid Debt While Saving: While automatic 401(k) contributions are beneficial, carrying a high credit card balance can counteract your savings efforts. With rising interest rates, it's crucial to tackle credit card debt before it outweighs the benefits of retirement contributions.

💼 Sequence Your Savings: Prioritize your savings strategy to maximize benefits. Start with an emergency fund in a high-yield account, then secure your employer's 401(k) match. Explore HSAs and ESPPs, and consult on Roth IRAs and Traditional IRAs.

🔍 Track Your Spending: Utilize year-end summaries from banks and credit cards to analyze your spending. Categorize expenses and rank them by importance to identify potential savings. This could reveal unnecessary subscriptions or opportunities to switch to more cost-effective services.

Remember, these are guidelines to kickstart your financial planning for the year. For personalized advice, consult a financial advisor. Cheers to a prosperous New Year! 🥂

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Transforming Wealth Management: Year-Round Engagement Over Year-End Rush 🔄

Gone are the days when financial planning was a December ritual. Embracing a year-round engagement model, financial advisors and clients can cultivate a dynamic partnership that thrives on trust and adapts to life's changes.

Here's how advisors and clients can benefit from proactive preparation:

🌱 Continuous Growth: Like a garden requiring regular care, a financial plan benefits from ongoing attention rather than a once-a-year checkup. This approach allows advisors to respond proactively to clients' changing needs and external factors, fostering a secure financial future.

🤝 Building Trust: Trust is the foundation of the client-advisor relationship. A Northwestern Mutual Study shows that advisors are the most trusted source of financial advice. Clients seek advisors who understand their life-stage priorities and can guide them through significant decisions.

🔍 Proactive Conversations: Clients are encouraged to involve their advisors in major life decisions, such as relocating, charitable giving, selling a business, or planning for marriage. These conversations ensure that financial plans align with the client's values and goals, reinforcing the trust-based relationship.

🚀 Preparation Over Reaction: Advisors play a key role in guiding clients toward financial preparedness. By removing the year-end deadline from the equation, clients and advisors can make timely, informed decisions, mitigating risks and avoiding financial crises.

In essence, wealth management is evolving into a process of continuous collaboration, where regular dialogue and mutual trust lead to more resilient financial planning.

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Prioritize Tax Planning in Your Financial Strategy 📈

When seeking a financial advisor, consider the growing importance of tax planning in your financial strategy.

Here’s why tax planning is essential for successful wealth management:

🎯 Advisor Selection: As you interview potential advisors, look beyond claims of unique trading systems or family-like treatment. Seek an advisor who emphasizes comprehensive financial planning, including tax strategies.

💰 Tax Planning Centrality: With potential tax rate increases on the horizon (possibly by the end of 2025), effective tax planning is becoming the most vital component of financial planning. It's essential regardless of your net worth.

🇺🇸 National Debt Concerns: The U.S. has a long history of debt, which has ballooned to about $34 trillion. With rising healthcare costs and entitlement programs, higher taxes seem inevitable, potentially kicking in with the expiration of the Tax Cuts and Jobs Act.

🔄 Strategic Tax Moves: Consider strategies like Roth conversions or Roth 401(k) options for tax-free growth and withdrawals. Managing required minimum distributions to avoid higher tax brackets, or even diverting funds to taxable accounts, could be advantageous.

🤔 Making the Right Choices: A good advisor will guide you through these tax planning strategies, which could save you significantly in retirement. The earlier you start integrating tax considerations into your plan, the greater the benefit.

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Wrapping Up

If these articles sparked your interest, we have a network that you will absolutely love: Forbes Finance Council.

This exclusive, vetted community brings together the brightest minds in finance — founders, CEOs, CFOs, and other leaders of finance teams.

Put yourself at the forefront of innovation with access to publishing opportunities on Forbes.com, a personalized, SEO-friendly Executive Profile, and the chance to network with other respected leaders in the field.

Join Forbes Finance Council today, and become part of a group driving transformation in finance.