As the new year begins, many individuals are considering resolutions related to wellness, including financial health. To make informed decisions, it's crucial to evaluate one's current financial situation. This involves reviewing saving and spending habits, as well as equity and credit levels.
Financial health can be assessed through four key pillars:
1. **Accumulate and grow wealth**: Establishing an emergency fund and saving for the future are essential steps. "Building wealth requires patience and discipline," emphasizes Angie O'Leary, Head of Wealth Planning at RBC Wealth Management–U.S.
2. **Fund your lifestyle today and tomorrow**: It's important to spend within one's means and avoid unnecessary debt. As retirement approaches, understanding market risks is vital for income planning.
3. **Protect what is important**: Insurance plays a crucial role in safeguarding family and wealth during working years. Reviewing coverage regularly ensures it meets evolving needs.
4. **Create a lasting legacy**: Estate planning should include establishing key documents like wills and healthcare directives. Gifting during one's lifetime can provide personal satisfaction while benefiting others.
Generosity not only enhances happiness but also sets an example for future generations.
RBC Wealth Management advises consulting with independent advisors for legal, accounting, or tax decisions related to accounts or investments.
A version of this article was originally published on MarketWatch.com in January 2025.
"Neither RBC Wealth Management, a division of RBC Capital Markets, LLC, nor its affiliates provide legal, accounting or tax advice," clarifies the firm in its disclaimer.