New Year’s Resolutions
28 Dec 2018
Happy New Year! Have you come up with your New Year’s resolution yet? It’s that time of year when many of us make a New Year’s Resolution, often promising ourselves or our loved ones that we will make some dramatic changes in our lifestyle. The most common New Year’s resolutions seem to revolve around losing weight, quitting smoking, picking up a new hobby, working out, and saving for retirement. It’s always entertaining to see the gym absolutely packed the first few weeks of the year, but by February or March it seems to dwindle down to the “regulars” and “weekend warriors”. In fact, according to U.S News, 80% of resolutions fail by the second week of February!
I hate to be the bearer of bad news, but the statistics show that New Year’s resolutions don’t work! Similar to the latest diet or workout trend, most people don’t have the perseverance and determination to stick with their resolution. Life gets in the way and the resolution quickly drops to the bottom of the priority list.
One way to help combat this lackluster follow through with your resolution is to hire someone to help you achieve your particular goal. Whether that means hiring a personal trainer, taking a smoking cessation class, taking guitar lessons, or hiring a financial advisor, you will probably have a much higher probability of success with sticking to your resolution.
Sticking with your plan is exactly where I can help with your financial resolutions. First of all, most investors don’t have a written financial plan. Through my onboarding process, I work with you to gather all of your financial information and create a customized financial plan for your unique situation. Once I have created and implemented the plan, we have regular reviews to keep you well informed and to make any changes if necessary. One of the hardest tasks for investors to do, similar to those with New Year’s resolutions, is to stick with their plan! In fact, a recent Vanguard study puts the added value of a financial advisor at “about 3%”. Amazingly, half (1.5%) of this added value stems from behavioral coaching, or “advisor guidance to help adhere to financial plan”.
The moral of the story is New Year’s resolutions are ineffective! My suggestion is to hire a professional to help you create and stick to a plan. If you are looking to make changes this year in regards to your financial situation, contact me today to get started!