We already know that positive financial changes are among the leading resolutions for individuals in the new year, but how can financial advisors help their clients make this a reality?
A new report by Lincoln Financial Group suggests the top modifications for individuals to consider with their finances in 2024, and forecasts budgeting, emergency savings, increasing financial knowledge and earning more money as the leading resolutions for those willing to make financial goals.
To hit their financial goals target, Lincoln Financial recommends clients make these top changes:
Connect with financial professionals
While studies show that 88% of Americans believe working with an advisor would be helpful, only 44% of individuals are actually doing so.
Those who work with a professional to build a well-diversified portfolio are significantly more likely to reach their financial goals, says Lincoln Financial.
In fact, another past report from Allianz Life found that 74% of individuals who work with advisors were more confident about their retirement savings compared to those who have never worked with a professional.
Budgeting financial goals and saving
Consumers can elevate their financial wellness by creating a budget, which can serve as a powerful tool to monitor spending, distinguish between needs and wants and allocate funds for both short and long-term priorities. Setting realistic goals and adhering to a budget can significantly improve overall well-being and help with effectively managing priorities.
Specifically, Lincoln Financial suggests a straight-forward five-step budgeting plan, starting with setting short and long-term goals. Individuals can take control of their finances by totaling income, tracking expenses, finding extra money and, most importantly, putting a budget into action.
Opportunities that protect against market volatility
According to the report, adding solutions like annuities, with optional features for an additional cost, can provide protected lifetime income to help consumers remain focused on their long-term financial goals.
Still, despite a slight interest in them, reports have found that investors remain confused about annuities, either due to a lack of awareness or skepticism regarding the products.
Yet, findings from the Center of Retirement Research at Boston College note that with guidance from an advisor, a “modest” number of clients could be more likely to consider and buy annuity products.
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