Nurturing Financial Freedom

How to Approach Your Finances in 2024

Episode Notes

Each year, we often take a holistic look at our finances.  Today, Alex Cabot and Ed Lambert of Birch Run financial break down what you should be looking at specifically, as we begin 2024.

Alex gives us six ponts to consider:

1. If you have an advisor, review your plan and prepare for the upcoming year.
2. Make sure your asset allocation is balanced for your goals., timeframe, and risk tolerance.
3. Ensure your cash is working for you  - there is yield to be found!
4. Pay down your high interest rate debt, especially unsecured debt.
5. Consider adding to your principal mortgage/debt payments -  or consider paying down certain debts slower!
6. Don't pay ANY attention to market predictions for the year - a good allocation can buffer against market volatility.

Next, Ed tells us how the Birch Run team is approaching this new year.  They are optimistic for the long term, but fairly neutral on 2024 specifically.   They believe technology will continue to drive growth over the next decades (as it has in the last 40 years).  

Also, over the past 50 years, the S&P 500 has had a positive return in 78% of those years.   If this trend holds, you've got roughly a 3 in 4 change of gaining money this year, and a 1 in 4 chance of losing money.    The most important thing is to maintain an even-keeled approach in all types of market fluctuations.   And the benefit of working with a financial advisory team is they can  help keep you honest and take the emotion out of your money.