Checklist to Prepare for 2022

As we get closer to 2022, lets position you strongly for your year ahead. Here is a 10-point checklist of financial things to think about.

If done correctly, this will help us achieve success together. In our next review meeting, we’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.

What is an accumulator or a decumulator – simply put its where you are in your life – are you still accumulating wealth or are you now drawing down from that which you have already accumulated?

For accumulators:

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 (bonds/mortgage, other credit) to calculate your net
- 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 off of the low base of 2020.
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?
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?
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?
Also review your debt commitments.
- Are you comfortable carrying this debt level? Could you create an advanced repayment schedule?
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?
Check your insurances – asset and personal.
- 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?
Review your estate plan.
- Do you have the right beneficiaries listed, should the worst occur?
Review your tax position.
- Tax-year end is only a few months away and as such you should start to engage with your tax practitioner to assess any provisions necessary?
- How is your structure from a tax perspective?
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? Are you reading your statements and our emailers/notices?

As part of the above, our involvement in your asset management and financial planning is important. We continue to believe in your portfolio and our relationship in this unique environment. As per our communication to you that was part of this we are working on portfolio optimization and wealth management strategies.

For decumulators:

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 (bonds/mortgage, other credit) to calculate your net
- 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 off of the low base of 2020.
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?
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?
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?
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?
Also review any debt commitments.
- If applicable, are you comfortable carrying this debt level? Could you create an advanced repayment schedule?
Check your insurances – asset and personal.
- 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?
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?
Review your tax position.
- Tax-year end is only a few months away and as such you should start to engage with your tax practitioner to assess any provisions necessary?
- Are you structured well from a tax perspective?
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? Are you reading your statements and our emailers/notices?