The arrival of the new year brings with it a sense of change, of new vistas to explore and new friends to meet. It is a time of optimism and renewal, a time to look forward with a sense of hope. In the song Feeling Good by Nina Simone, she sings, “Birds flying high, you know how I feel. Sun in the sky, you know how I feel. Breeze driftin’ on by, you know how I feel. It’s a new dawn, it’s a new day, it’s a new life for me”. This is not to say that the coming year won’t have its share of challenges, but we here at Prosperity Wealth Planning choose to be optimistic about the future, with a spirit of constant improvement and innovation in our approach to planning and our service offering to our clients.
Carolanne’s Corner
I have always thought that the start of a new year is a good time to take account of where life has taken me recently while simultaneously contemplating what the future may hold. Although 2023 was a tough year for me and my family personally, I can’t help but feel a little optimistic as we head into 2024. After all, it's a Leap Year, and that extra day may just come in handy for some of us. Of course, this is also an election year, and elections usually mean that there may be some challenges to overcome. Given all that lies ahead this year, I’m choosing to look on the sunny side and feel excited for the future.
New Year’s Goals
Aspirations, resolutions, goals. Whatever you call them, the start of a New Year represents an opportunity for most of us to reflect on what we have been doing lately, and to think about where we would like to be in the future. It’s true that many New Year’s resolutions have a well-deserved reputation for placing unwanted pressure on us or encouraging unrealistic goals. However, they can also be a great starting point to prioritize what’s important, like your health, relationships, finances, and life goals.
When it comes to goals, it’s smart to think about how to give yourself the best chance for success. First, goals need to be realistic. You should be able to visualize not only where you’re going, but the necessary steps to get there. Realize that there will be bumps in the road and that you’ll have to have a plan for how to overcome them. One good way to track your progress is to keep a journal or diary. Also, don’t be afraid to enlist friends, family, or a mentor for support. When you have accomplished a certain milestone, don’t forget to reward yourself. At the heart of every successful New Year’s resolution is the ability to project, commit to, and maintain a change. Some fresh examples of common goals for a new year are outlined below:
Health & Wellness
- Cook something new once a week
- Create a nightly routine for better sleep (maybe put down the tablet and turn out the lights a little earlier?)
- Try to read a new book once a month
- Meditate for 10 minutes a day
- Try out a new physical activity – yoga? surfing? cross-country skiing? pickleball?
Friends & Family
- Limit Facebook/TikTok/total screen time
- Look into starting up a family/friends game night
- Join (or start) a book club
- Maybe call an old friend/relative you haven’t seen in a while for a visit or night on the town
Travel
- It’s a big, beautiful world out there - use those frequent flier miles
- Try out a mode of transportation you’ve never experienced before
- Take that trip (you know, the one on your bucket list)
- Start checking off those National Parks so you can brag about visiting every one of them
Personal Finances
- Create a spending plan, and stick to it
- Improve your financial literacy (and your family’s, including your children)
- Let go of money anxiety by trusting your plan
- Clarify your financial goals, both short-term and long-term
Jonah’s Journal
Goodbye 2023, Hello 2024! A part of me is kind of sad to see 2023 disappear in the distance. It turns out that stocks fooled nearly everyone in the forecasting business in 2023, with all indexes rising and almost all indexes reaching new record highs. Conversely, traditional fixed income continued to struggle in a continuation of the largest bear market in bond history. Please see below where I’ll detail, in my opinion, the biggest influencers in the capital markets for each quarter -
First Quarter – “AI” (Artificial Intelligence): applications such as ChatGPT began to rise in usage in classrooms, board rooms, and many other areas
Second Quarter – The Consumer Price Index (CPI): this key measure for inflation finally showed signs of moderating, and by the end of the quarter had fallen to 4% year over year
Third Quarter – Labor strikes: from Hollywood to Detroit; we saw more than 210,000 combined workers picketing and negotiating for changes/improvements in their union contracts
Fourth Quarter – War: things started heating up in the Middle East, and the conflict in Ukraine showed no signs of ending. Defense stocks surged while oil remained volatile, and more than 20 nations formed a naval task force to protect commercial trade routes in the Red Sea.
2023 Returns
Equities:
- S&P 500 up 24.23%
- DOW up 13.70%
- NASDAQ up 43.00%
- MSCI World excluding U.S. up 17.18%
Fixed Income:
- Bloomberg U.S. Aggregate Bond up 5.53%
- Bloomberg World Aggregate Bond up 7.15%
News and Upcoming Events
Voluntary Exit Packages
Receiving the news from your employer of a voluntary exit package can impact you, your friends, and your family members. If someone you know has been impacted by a voluntary exit package and could benefit from our services, please share our contact information and website, or email Jenny Molnar with their contact information at jenny@prosperitywealthplanning.com, and we will reach out to them. Having a solid, well-constructed plan in place goes a long way toward positioning you to take advantage of new opportunities while helping make challenging decisions about the future a little easier to navigate.
What’s new for Prosperity Wealth Planning in 2024?
Spring Prosperity Planning Sessions
It’s almost that time of year again - time to reset goals and priorities for the year ahead. The Spring Prosperity Planning Sessions will be held from February through April this year and will focus on the following financial planning topics -
- Annual risk assessment
- Review investment accounts
- Cash Flow and Budget Review
- Update retirement and college savings plans
- 401k and IRA contribution check-in
- Annual insurance needs discussion, including long-term care
Look for our email announcement or get a head start and book your meeting now by clicking here Spring Prosperity Planning Sessions.
Tax Planning
Remember the old saying, “It’s not what you make; it’s what you keep.” With that in mind, taking the time today to properly plan for your tax obligation tomorrow will help save more of your hard-earned money for your retirement. During our Tax Planning Sessions, we review issues that lead to healthy tax planning and offer more in-depth tax planning options.
Supercharge Your Finances – The PODCAST!
The Supercharge Your Finances video series is now a podcast! The new format will provide current trends in financial planning, educational topics, and market commentary. Click below to see the latest in the Supercharge Your Finances series - Tax Planning.
Articles of Interest
This is the dawn of a new year that promises to be eventful, with hopefully more ups than downs. It is more important than ever to make financial planning a key to help navigate the challenges and opportunities that may come along in 2024. We look forward to working with you in the coming year and to "feeling good” about the service we provide to you on a daily basis. As always, we thank you for your trust and support.
Cheers,
Carolanne