As we step into the new year, it's a perfect time to reflect on the journey of the previous 12 months and think about the path that lies ahead.

From a financial adviser's perspective, this is especially crucial when thinking about your money goals for 2024 and beyond.

There are three key items we at Collinson Wealth think you should focus on when mapping out your financial goals: 

• Revisiting personal and family goals
• Expecting the best and preparing for the worst
• Bear in mind important dates e.g. tax, KiwiSaver, your ‘Review Day’

Revisiting goals

Financial plans are about mapping the future, showing how you are going to achieve your long-term goals with the finances to back them. It’s about structure and flexibility.

Consider your aspirations: What do you aim to achieve, and when? Take into account the individuals in your life—partners, kids, and parents—who may require support. Figure out how much money you'll need to achieve these goals and understand the costs involved in making them happen.

Flexibility is key. When life throws changes your way, you need to manage your personal circumstances and the finances connected to them. Be ready to adapt—life is full of surprises. As your personal situation changes, your plan should adjust too. While keeping long-term goals in mind, remember that the path to reaching them may shift.

It’s a good time to look at performance. What is your current financial situation? Did things go as you planned? Should you adjust your expectations? Consider if your comfort level with taking risks has changed. Make sure the level of risk you're taking is suitable for your current situation.

Explore new opportunities and constraints. Since the market is constantly changing, consider if there are fresh investment options worth exploring. At the same time, be mindful of what you should avoid.

Expect the best but prepare for the worst.

One very interesting aspect of 2023 was that despite economists forecasting negative outcomes for markets and economies, it turned out to be a surprisingly positive year for stocks and bonds. This highlights the importance of why you should approach forecasts, especially short-term ones, with a grain of salt and not take them as absolute predictions.

The key here is developing the right mindset that guides you to take the right steps to mitigate risk, and a part of this involves being a ‘realistic optimist’ You don’t want to be crazy optimistic as that is how you end up piling into cryptocurrency or single stocks on the promise of big returns, while these investments can be rewarding when they rise, the downside is not pleasant when they crash. Similarly, too much cash on hand can cause you to miss out on the long-term positive effects of investing and compounding. 

Successful wealth builders blend the right mindset with the right financial plan.

Ask yourself some key questions to test your mindset and thinking. Consider scenarios such as a 20% drop in stocks—would you sell everything? What if you lose your job? What would you do if you encountered a large unexpected expense? What's your plan if you fall short of your financial goals? Delving into these questions helps you better understand your preparedness and prompts thoughtful considerations for various situations.

Key deadlines and dates

Here are some important dates in the year to keep in mind when you're planning for your financial goals and the year ahead. 

31 March – The end of the tax year. Make sure to handle provisional tax and gather all your investment information for filing, along with taking care of any other financial matters. If your affairs are complicated, ask yourself if you have the right advice to help you complete your return and ensure you are meeting your obligations.

30 June – KiwiSaver government contribution. Have you met the $1043 min to get the $521 government contribution?

Your Review Day – Designate a day that you invest time in your future. Review your financial position and include your investment portfolios such as KiwiSaver. It’s like a warrant of fitness except it is for your personal financial goals.

What we can do to help

We, at Collinson Wealth Partners, are experienced financial experts who are always happy to assist you in reviewing these key items and share our knowledge and experience in this area.

The information contained in this publication is general and is not intended to be personalised financial advice. Before making any financial decisions, you should consult a professional financial adviser.

Collinson Wealth Partners believes the information in this publication is correct, and it has reasonable grounds for any opinion or recommendation contained in this publication on the date of this publication.