FINANCE: GETTING YOUR DUCKS IN A ROW

GETTING YOUR DUCKS IN A ROW By Thomas Dowling

It is the beginning of the New Year and that means new things to do: Let that be getting your finances in order. It’s not as hard as you think. First, the main thing you need to do is ask yourself 3 questions:

HAD ANYTHING CHANGED IN MY LIFE LAST YEAR?

You want to think about things such as, did you get married; did you have a child or did you change jobs? If so, this may require you to switch your investment strategies and possibly start saving for college, adjusting your spending, save more or less for retirement or get more insurance.

44 ParenthoodIQ.com • SPRING 2020 AM I CLOSER OR FURTHER AWAY FROM MY FINANCIAL GOALS?

This answer will help you understand if you need to adjust your plan. If you are closer, great, you are doing it right; if you’re not, then find out why and see if you need to make a change.

AM I MORE ORGANIZED THAN I WAS LAST YEAR? I believe the three keys to success are D.O.D – Dedication, Organization and Desire. If you have those three things you can achieve success in anything you do. Everyone understands that to be successful at something you must be dedicated and have the desire but what they often forget is that being organized is a key element to that success. Some of the things you can do to get more organized is to consolidate your accounts so you can get a clear picture of how they are doing, find an online system where you can keep track of your finances and schedule a time each quarter or half year to review things. Part of the problem with getting organized again is that it takes a lot of time. I find people get frustrated because it can take so much time and then they say, I'll do it later; and later never comes. So, start now. When you answer these questions and are still unclear of what to do, I suggest finding a planner you trust, because part of their job is to get you organized.

Additionally, if you want to avoid some of the biggest mistakes people make then create that plan. Figure out what you want to accomplish financially for at least this year. Create the goal. There is an old proverb, “success begets success.” When you set your plan and accomplish it, the next accomplishment seems easier to achieve. If you went into your child’s school and asked the teachers what their yearly educational plan for the kids was and the response was ‘I don’t know we will figure it out as the year goes along,’ you would be horrified. I find what happens a lot of times with younger people is they say, I have no idea what will happen to me in three years from now, how can I plan? I say how can you not plan?' Plans change that is why you review your plan at least yearly. Finance is not a one-anddone, it’s a long-term process that can and will change over time that is why you want to make sure you create a base plan and use it as a road map. Sometimes you must adjust your driving route because of a detour, that will happen with your financial plan but at some point, you get back on path to your destination.

Do it yourself or find a planner to help but just do it! PIQ

Thomas M. Dowling CFA, CFP®, CIMA® is an Executive Managing Director with Aegis Planning. Thomas has been featured in various publications and has been a guest speaker at various financial organizations. Locally, he is a member of the Rotary and sits on the Board of Directors of the Hilton Head Baseball Association, Hilton Head Boys and Girls Club and the Town of Hilton Head Parks and Recreation Commission. He can be contacted at tdowling@aegiscap.com or 843.715.2239