by Martin de Bruyn, CFA, CFP®

As we get closer to 2022, I’d like to use this opportunity to position you strongly for the year ahead. As such, we’ve put together a short 10-point checklist of financial things to think about.

If done correctly, this will help us achieve success together. In our next review meeting, I’d also be delighted to discuss the findings of this checklist and we can review your overall financial plan as needed. If you feel we need to bring this forward, please let me know and we’ll make it happen. The sections are split between “For accumulators” or pre-retirement, “for decumulators” or post-retirement and “for everybody”. Only read the sections that apply to your phase of life.

For accumulators:

1. Take a moment to recalculate your net worth. This can be done on the back of an envelope or in a spreadsheet, taking your assets (house, cars, retirement savings, cash, etc) minus any debt (mortgage, other credit) to appreciate your net worth. By creating this personal balance sheet, you’ll quickly get a holistic view of your situation heading into 2022 – balancing short-term assets like cash against longer-term assets like retirement funds. You may also be pleasantly surprised after a strong year for growth assets, with real estate and your investment portfolio doing well.
2. Once you’ve done the above, update your goals. Think about your prior goals and if they have changed. Are there any new financial priorities as we enter 2022?
3. Review your spending habits through 2021. A quick cash-flow budget (income minus expenses) could be helpful here. Are you satisfied with your net saving level? Can you make better use of such savings entering 2022? Any changes in lifestyle you’d like to make?
4. Depending on your goals and cash flow, check your retirement contributions for 2021 and decide on any changes for 2022. Are you satisfied with the progress you’re making? Do you need to increase your contributions?
5. Also review your debt commitments. Are you comfortable carrying this debt level? Could you create an advanced repayment schedule?
6. Think about your risk tolerance and risk capacity. Are you more/less nervous about markets than when we last reviewed your financial plan? Would you feel better if we took some risk off the table? Or do you need to take more risk to achieve your goals?  
7. Check your insurances. Do you and your family have the foundational cover you need? Do you need to make any changes to the level of cover? Can you change provider to save money?
8. Review your estate plan. Do you have the right beneficiaries listed, should the worst occur?
9. Review your tax position. Tax-year end is still a while away, but do you have any upcoming taxes you need to provision for? Are you structured well from a tax perspective?
10. Be truthful to yourself and check back on your financial emotions through 2021. Have you felt calm and progressive? Or insecure and afraid about your financial future? Have you done anything to advance your financial education? (I can help offer some tips and provide resources if desired/helpful).

As part of the above, we continue to monitor your portfolio progress too, which we continue to believe is soundly positioned for this unique environment. We retain different assets to help protect against the various risks while taking advantage of the economic recovery for long-term wealth creation.

For decumulators:

1. Take a moment to recalculate your net worth. This can be done on the back of an envelope or in a spreadsheet, taking your assets (house, cars, pension, savings) minus any debt (mortgage, other credit) to appreciate your net worth. By creating this personal balance sheet, you’ll quickly get a holistic view of your situation – balancing short-term assets like cash against longer-term assets like retirement funds. You may also be pleasantly surprised after a strong year for growth assets, with real estate and your investment portfolio doing well.
2. Once you’ve done the above, rethink your income needs and any near-term financial requirements. Check your withdrawal levels through 2021 – have you been comfortable and is it a safe withdrawal rate? Do you have any lumpsums you’ll need in the next 1 to 5 years?
3. Review your spending habits through 2021. A quick cash-flow budget (income minus expenses) could identify areas you’ll like to make changes. Can you remove or reduce any costs entering 2022? Would you like to add items to enhance your lifestyle?
4. Think about your risk tolerance and risk capacity. Are you more/less nervous about markets than when we last reviewed your financial plan? Would you feel better if we took some risk off the table? Or do you need to take more risk to achieve your income needs?  
5. Work through your goals and priorities. Think about your prior goals and if they have changed. Are there any new financial priorities as we enter 2022?
6. Also review any debt commitments. If applicable, are you comfortable carrying this debt level? Could you create an advanced repayment schedule?
7. Check your insurances. Do you and your family have the foundational cover you need and do you need to make any changes? Can you make savings?
8. Review your estate plan. Do you have the right beneficiaries listed, should the worst occur? Would you like to consider any advanced bequests, helping your family get ahead?
9. Review your tax position. Tax-year end is still a while away, but do you have any upcoming taxes you need to provision for? Are you structured well from a tax perspective?
10. Be truthful to yourself and check back on your financial emotions through 2021. Have you felt calm and progressive? Or insecure and afraid about your financial future? Have you done anything to advance your financial education? (I can help offer some tips and provide resources if desired/helpful).

For everybody:

1. Have you got a valid Will? If so does your Will reflect your current family and financial situation or have your family or business circumstances changed? Is the current nominated Executor still an appropriate nomination?

2. Review your nominated guardian/s should there be minor children

3. Is there appropriate liquidity in your estate should the unforeseen happen and you or your spouse pass away?

4. If there are Trusts are they still appropriate and correctly structured?

5. Do you have a “death/life file” where all the relevant documents are kept together to make it easier for the survivor should one of the spouses pass away? Does your nearest family know where to find this?

I hope you find this checklist useful. If you would like me to elaborate further on the above, or any other matter—I’d be delighted to chat.