As 2024 comes to a close, it’s the perfect time to take a step back and evaluate your financial situation in preparation for a successful 2025.  By checking in on your finances now, you’ll ensure you’re in a strong position to reach your goals in the year ahead and beyond, with the aim of living your best life. 

For a reminder of some key areas to review as we head into the new year take a look at our checklist below:

1. Personal Insurances

If you’ve increased or decreased debt, changed jobs or had a pay rise, bought an investment property, sold one, grown your family or had any other major changes in life, then it’s important to check your personal insurances such as Life, Income Protection and Trauma cover, have been adjusted to suit your new circumstances.  This is about  providing the right money to the right people at the right time.

2. Check Your Estate Planning Documents

Estate planning is often overlooked but it’s essential for protecting your assets and ensuring your wishes are carried out as part of your legacy, so make sure to:

• Review your Will and Trust Documentation – Are they up to date? Do they reflect your current family and financial situation?
• Review the beneficiaries listed and other financial documents to make sure they reflect your wishes.
• Check your Enduring Powers of Attorney (EPA) – make sure the people you have appointed are still appropriate for both Property and Care & Welfare
• If you don’t have either a Will or EPA – make it your New Year’s resolution  to establish these as soon as possible, as without an EPA, if anything were to happen and one is needed, it can costs thousands to apply to the Court to have someone appointed (who may not be who you’d choose!)

3. Review Your Expenses and Savings for 2025

A fresh start in 2025 means keeping a close check on your spending – we’re all aware that costs have increased significantly over the last couple of years and it’s good to be on top of things.

• Review your spending – If you’re in the accumulation phase of life, trying to build up your savings and investments, look at your spending habits over the past year and identify areas where you could potentially find some savings instead of possibly ‘frittering’ money away

• If you’re retired – let us know if the income you’re getting from your investment portfolio is now feeling ‘tighter’ than before, and not covering your costs, or perhaps there are things on your bucket list you still want to do while you can!!  Part of our role is to give you permission to spend your money whilst providing you with peace of mind that you’re not going to run out of it
• Make sure you have an emergency fund in cash – Having a cash fund helps take the pressure off when something unexpected but costly happens, such as a major car bill, a period of being unable to work etc. We suggest you try and set aside 3-6 months of your expenses in a ‘rainy day’ fund
• Set new financial goals – Whether it’s saving for a big purchase, paying down debt, or investing for the future to ensure you have a comfortable and secure retirement, having a goal can help drive success.  If you’d like our support with helping define what’s important to you, please get in touch 

4. Mortage Payments

Check-in on what your current mortgage interest rate is, what your payments are, and if you need to make any changes.

• If you’ll be re-fixing in 2025 – then with interest rates dropping, try to maintain your payments at the higher level to help clear your mortgage sooner
• If you have any high interest debt on credit cards or such – these should be repaid as a priority

5. Retirement Savings and Investments

Revisit the savings you’re making, what investments you have in place, and where these are being invested.

• Review your KiwiSaver Scheme – it’s easy to let this run along in the background, and when markets are volatile, which is normal by the way and to be expected, this is ‘okay’ provided you’re in the right fund for your situation, so take the time to look at your fund choice

• Review any other long-term savings – check on your investment strategy to ensure it aligns with your long-term goals, risk tolerance and any ‘ethical’ preferences you may have of wanting to invest in a socially responsible way.  Revisit the level you’re able to save and whether you’re on track for the money you’ll need to spend in the future

6. Preparing for a Prosperous 2025

By reviewing and updating these key areas of your financial life you’ll be better positioned to take control of your money for 2025.  Starting the year with a clear financial plan can help reduce stress and set you up for success.  As always, we’re here to support you, so please feel free to reach out.

Wishing you a smooth end to 2024 and a prosperous 2025!

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