As we approach the threshold of a new year, we find ourselves reflecting on the journey we’ve taken in 2023. 

The turn of the calendar marks not only a change in dates but an opportunity for renewal and growth. The dawn of a new year invites us to introspect, recalibrate and set forth with renewed determination.

In the spirit of renewal, we would like to challenge you to adopt a “New Year, New You” financial mindset.

Let’s designate 2024 as the year you establish a comprehensive wealth plan. We encourage you to assess your investment strategies, align them with your evolving goals, and make sure you are on track to achieve your objectives.

I invite you to consider 5 areas of focus for your 2024 financial planning.

1. Estate Planning

Regardless of financial status, every adult can benefit from an estate plan to help safeguard their assets and reduce stress on loved ones. Without an estate plan, important decisions about your assets will be made by state law and probate courts — and these decisions may not be aligned with your interests or your family’s needs.

We typically recommend focusing on five areas in the estate planning process:

• Will or revocable trust: Where do you want your assets to go when you die?
• Medical power of attorney: Who do you want to make medical decisions for you if you are incapacitated?
• Financial power of attorney: Who do you want to make financial decisions for you if you are incapacitated?
• HIPPAA release: Who do you want to have access to your medical files?
• Directive to Physicians: How would you like to be treated medically in the event of an irreversible condition when you are unable to make your intentions known?

2. Financial Planning

Do you have your assets invested in a manner that provides the income and growth necessary for your imagined retirement, charitable and legacy goals?

It’s important to consider your risk tolerance, investment horizon, and available savings vehicles – such as Individual Retirement Accounts (IRAs) and 401(k) plans for cash flow during retirement, 529 plans for educational savings, long-term care insurance and life insurance in the event of long-term care costs or premature death, and donor advised funds or private foundations for charitable giving.

3. Wealth Transfer Planning

Studies have shown that 90 percent of wealth does not last beyond three generations of a family. In his book, “Intentional Wealth: How Families Build Legacies of Stewardship and Financial Health,” Courtney Pullen discovered that the 10 percent of families who made it past the third generation did so by deliberately investing as much time and energy in the family as in creating wealth.

Legacy planning moves away from financial assets and shifts the focus to relationships, education, and preparedness. Many clients say leaving a legacy of values and life lessons is more important to them than leaving money.

4. Business Succession Planning

Have you positioned your business for a future without you?

A family business succession strategy requires a multi-stage development plan to ensure that the next generation is prepared to assume responsibility. If you’re going outside your family to find a successor, you’ll need to create a detailed business plan that includes the succession strategy, timelines, terms, valuation and financing details.

Finally, you will need a communication plan to clearly articulate who will be responsible for what and when. Lack of communication with family members, clients, employees and vendors is often where business succession plans can go awry. 

5. Retirement Planning

Have you done what you need to do for the retirement you would like to have?

Remember: There is much more to planning for retirement than just saving and investing. A successful retirement comes down to whether you are able to meet your life goals given the financial resources available to you. Balancing the time we have left with the financial resources available and the goals we want to achieve is the essence of a successful retirement. 

A Zions Wealth Advisor can give you realistic feedback on your ability to meet your goals and create an accountability partner to see you succeed. Our team can help create a comprehensive plan that aligns your financial objectives with your broader life goals. Get more information on our website or schedule an appointment with our Wealth Management team.

Chris Considine JD, CFP^® is Director of Wealth Planning for Zions Bancorporation.