fbpx
U

How to Plan Your Investing Strategy For 2023!

January 31, 2023

Transcript

Step one in hitting your goals is to start with doing a net worth statement. Step two is to make a plan for investing in 2023. This may seem obvious, but I’m going to dive in and explain why it might not be as obvious as you think.

Make a plan for investing. I think a lot of people mess this up right off the gate. I still have friends who ask me about index funds because they know I love them. I had one recently over the holidays who asked me if I was still using those index funds. They had a rough year last year, but I told them that every month, I’m still buying into those same baskets.

It is important to take a big overview of what your plan is for every dollar you’ll be investing every month. Are you going to be loading up, or will you spread it out? Realize all the contribution limits for a lot of different accounts have changed, and you have the potential to update all of that right now in January to capture it throughout the year.

A lot of folks walk into financial planning and walk in their savings strategy thinking they’ll see what they have left over at the end of the month and save that. But behaviorally, that just doesn’t work for most people. If you wait until the end of the month to save, you’ll find there’s no money left over. So, we think starting at the beginning of the month, the beginning of your pay cycle, or the beginning of the year, you need to lay out where you want your money to go. Pay yourself first before you pay for all the other living expenses that come through life.

Don’t just guess if you’ll have enough left over at the end of the month. You need to figure out some things, like if you look at Roth IRAs, health savings accounts, and 401ks. All of them have changed funding limits, and you need to figure out whether Roth IRAs are something you should do once at the beginning of the year or spread out throughout the year. Be deliberate with that.

One of the things that we like to talk to our clients about is the financial order of operations. We have nine tried and true steps of what you should do with your money. Every year, when they become a client, we do a “foo” for them. It’s helpful if you can go through the financial order of operations and think about what you want to do this year. Check the boxes as you work through them.

Just thinking about maxing out your Roth IRA (which has gone from $6,000 to $6,500) can be amazing. If you put that money to work right as you’re 25 years old, by the time you retire in 40 years, that $6,500 has the opportunity to become $286,000. Harness the power of compounding growth and let your money work harder than you can with your back, brains, and hands.

To learn more download our free resource – Wealth Multiplier.

Connect

Subscribe

Most Recent Episodes

Financial Advisors React to Money Advice from ChatGPT

Will ChatGPT be your new financial advisor? In this react episode, we’ll break down some money advice from ChatGPT and compare it to our own thoughts and opinions. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know...

Financial Planning 101 (By Age) 2023 Edition

Throughout every decade, there are different areas of your financial life that come in and out of focus. In this episode, we'll discuss what you need to focus on by age, pitfalls to watch out for, and how to know you're doing it right. In this episode, you'll learn:...

Is the 2023 Housing Crash Around the Corner?

Housing prices skyrocketed after the pandemic to all-time highs, and mortgage rates have more than doubled since 2020. Homes are harder to purchase for more Americans, which means it’s more important than ever to make sure you are ready to buy before purchasing. In...

Watch This Before Rebalancing Your Investment Portfolio!

85% of Americans don’t rebalance their 401(k). Are they making a huge mistake? In this episode, we’ll discuss the “why” behind rebalancing, how to do it, and the data on whether or not rebalancing can increase your return. In this episode, you’ll learn: What...

Don’t Make This HUGE 401(k) Mistake!

Americans are making a HUGE mistake in their 401(k) that could cost them thousands by retirement. We’ll talk about why this is happening and how you can avoid making the same mistake in this Q&A episode! For more information on how to make the most out of every...

Alex Hormozi’s Top Money Advice! (Financial Advisors React)

In this episode, we react to Alex Hormozi's financial advice. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know Your Number Course! Check out our Net Worth Tool! Get FREE downloads full of financial advice from...

Everything You Need to Know About Finances in Your 20s

In this episode, we discuss everything you need to know about finances in your twenties. In this episode, you’ll learn: The top financial advice for your twenties How to start building wealth and the steps you should take Enjoy the Show? Sign up for the Financial...

The Most Valuable Asset in Building Wealth!

This episode will show you how to maximize the most valuable resource you have - starting right at this moment. What is it, you may ask? It’s TIME. If you give your money time to grow, you’ll be amazed at how much your dollars can become - it’s incredible! How wild is...