2025 Financial Goals

As the year comes to an end, it is a good time to reflect on the last 12 months and how you would like to move forward over the next year.

For those who set goals in 2024, were they accomplished? Which ones were accomplished, and which ones were not? For the successes, take a minute and “smell the roses.” Enjoy the win(s). For goals where not as much progress was made, what obstacles came up and what strategies can be utilized next year to surmount them (if the goal is still relevant)?

Every December, I find this to be a helpful and satisfying exercise before laying out goals for the next 12 months.

Now that you have “given yourself a pat on the back” and we turn to 2025 goals, one area of life to consider incorporating into your plan is personal finances. Below are four subtopics within this purview that can be targeted:

1. Income—On the road to building wealth, one primary lever that can be pulled is how much you earn. While many people do not directly control their income, they may be able to exert some influence over it. For example, if you are an employee at a company and want to increase income, it may involve working more hours to get a promotion and the associated pay raise. Alternatively, getting to the next rung on the ladder may involve acquiring another degree, credential, or skill (e.g., MBA, CFA, or public speaking). For business owners, increasing revenue could encompass networking, attracting and working with more clients, or hiring staff to leverage your time and grow the company further. All in all, while directly controlling income may be challenging, there could be ways to accomplish this within your sphere of influence.
2. Net Worth—When we create wealth plans for clients, one of the primary areas we focus on is net worth. This is because net worth plays a major role in your ability to accomplish future goals whether it be retiring at age 50, buying a vacation home in France, or funding your children’s US university tuition (expensive!). Elevating net worth might comprise boosting savings, raising income (and proportionally savings), ensuring your money is working for you by means of an appropriate investment allocation, or increasing your company’s revenue in hopes of a future exit.
3. Risk Mitigation—This is a frequently overlooked topic in terms of goal setting as it can be morbid (e.g., life insurance or estate planning). However, it is essential to review your risks and determine where the gaps are, as they can have major financial ramifications. Do you have adequate health insurance now and a plan for future health insurance as you move, age, and retire? Is there sufficient life insurance coverage in place to cover liabilities? Do you have Wills, Power of Attorney, or Health Care Directives? How long has it been since these were reviewed and updates made? These are topics that are often put to the side but must be addressed.
4. Tax & Tax Optimization—Depending on your nationality and country of residence, taxation can be a good goal for the new year. Singaporean clients might consider topping-up their CPF or utilizing SRS to take advantage of tax deductions. Australian clients abroad who plan on retiring in Australia may consider utilizing offshore bonds to receive tax-free income during retirement. Moreover, US individuals could benefit from irrevocable trusts to avoid estate tax or making charitable donations in a tax-efficient manner. This enables you to more effectively and efficiently accomplish financial goals.

Bill Gates once said, “most people overestimate what they can do in one year and underestimate what they can do in ten years.” As I look at where I was 10 years ago, it is clear how true this is and how powerful small to medium steps taken on an annual basis compound to major changes and accomplishments over the long term.

From all of us on the Avrio team, we wish you health, wealth, and happiness in the new year, and major progress toward your goals in 2025.

This material is intended for educational and informational purposes only. It is not intended to provide specific advice or recommendations for any individual. Additionally, you should consult with your Financial Advisor, Tax Advisor, or Attorney on your specific situation. The views expressed in the material are that of the author and do not necessarily reflect those of any market, regulatory body, State or Federal Agency, or Association. All efforts have been made to report or share true and accurate information. However, the information may become materially outdated or otherwise rendered incorrect due to subsequent new research or other changes, without notice. The author nor the firm are able to always verify the content from third-party sources. For additional information about the firm, please visit the MAS Website at https://www.mas.gov.sg/  and the SEC Website at www.adviserinfo.sec.gov. For a copy of the firm's ADV Part 2 Brochure, please contact us at info@avriowealth.com.