Friday, November 30, 2018

TIPS FOR YEAR-END FINANCIAL PLANNING

1. Assess your current plan progress.
Look at any areas of your 2017 written financial plan that you have not yet accomplished and endeavour to complete them in the remaining days, or include them in your 2019 plan.

2. Review your current cash flow.
Take a deeper look at what you are spending your money on each month and determine what opportunities there are to find “painless savings”. You may even find some easy ways to save a few extra Naira for your long-term goals.

3. Calculate your asset allocation.
The run-up in stocks may have increased your stock allocation and you may hold more risk than you are comfortable with. If so, look at making some re-allocations – and don’t forget to consider the tax implications of any move inside a taxable account.

4. Estimate if you are on track to maximize your retirement contributions.
Try not to miss any valuable tax deductions; this is a great time of year for retirement top ups, especially with year-end bonuses.

5. Talk with your tax and financial consultants.
Explore other ways to save on your tax liability. There may still be time to act, but time is running out!

6. Explore and take advantage of your tax reliefs.
With the aid of your tax consultant and accountant, you can plan and take advantage of tax reliefs and incentives that available for you in the current year. Ensure that you are not exposing yourself to any undue tax burden.

7. Review your estate planning.
Each year we should really take the time to review our wills and general estate planning. Your year may have changed your estate planning more than you thought and taking the time to engage the topic will prevent it from running ahead of you in the future.

8.  Consider what life changing events you may face in the new year.
For example: if your employer is struggling, planning job cuts, or if you are considering a job change, do you have enough liquidity on hand while you look for a new position? If you are buying a new house, are there steps you can take now to improve your credit and accessibility to funds?

The financial planning process is continual and never ending. Reviewing year-to-date progress and anticipating future needs can lead to better results. Use this year-end period to assess your current situation and identify future planning opportunities.

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