Though the “New Year’s Resolution” might seem corny to some, for many they hold real intent and weight, particularly when it comes to personal finances.
“The new year is a natural time to pause for many of our clients,” said Natalia Smith, founder and principal adviser at TruWealth Advice.
“They spend time with their family and friends, take time off work and reconnect with their personal side of life. It helps them get more clarity and fresh perspective about their lives and what matters most.”
This too has been noticed by Mazi Wealth’s Deline Jacovides.
“We have a large number of clients who aren’t on an annual ongoing advice arrangement and instead tend to check in every two or three years,” she observed.
“January is a natural reset point, and we see many of those ad-hoc clients come back to review where they’re at and realign their finances after a period of change.”
Smith assessed that much of the time, clients are approaching their advisers with complex needs in the New Year, such as new tax arrangements, that need careful consideration.
“Some of those ideas can be helpful, while others may not be appropriate for their situation at all. Our role is to listen carefully, understand the background and give clear, honest advice,” Smith stated.
“A major recurring theme we see is financially supporting adult children, especially if they are experiencing financial stress or cash flow challenges. Clients often want to know whether they are in a position to help their children financially without jeopardising their own financial stability.”
Jacovides added: “The most common goal we see is regaining control after the holiday period. Many people feel the financial hangover from Christmas and summer spending and want to reset their cash flow.”
“We also see a lot of unfinished business come up — things like estate planning or insurance. Many clients tell us, ‘I said last year I’d sort this out,’ and suddenly another year has passed. The New Year brings a renewed sense of urgency to finally tick those important items off.”
Vincents Private Wealth director Paul Green also highlighted that often, the New Year is a good time for pre-retirees to start thinking about steps they can take to start thinking about how they can optimise their income to support the lifestyle in retirement they want.
“There’s always time to reflect on where you are relative to where you thought you’d be, and sometimes that comparison can be a real wake-up call,” he explained.
