Take Time to Reflect on the Financial Results from 2021 and Make a Plan for 2022

Take Time to Reflect on the Financial Results from 2021 and Make a Plan for 2022

December 01, 2021

2021 has certainly been a year of financial highs and lows. No one can reliably predict short term moves in the market, but good financial planning can help prepare you for unforeseen setbacks. If you had a successful year, it’s a good time to evaluate how to apply the lessons learned from those wins for the long run.

We can call 2021 the year of the rollercoaster, both terrifying and exhilarating. Many people were focused on protecting their wealth, which means avoiding abrupt decisions that may be regretted later.

Minimizing mistakes. A year like 2021 shines a spotlight on how to avoid structural weaknesses in investor strategies. It’s crucially important to maintain a portfolio that is sufficiently diversified. Many investors have access to a diverse set of assets classes. The more widespread your asset allocations, the more you can manage your portfolio risk during volatile times.

Understand your risk tolerance. Many risks that loom large in the short term may ultimately have little or no significance over the long term. That is why it is important to regularly evaluate your risk tolerance. My job as a financial professional is to get to know you and your financial goals. From there we can work together to create a strategy that positions your portfolio so that it aligns with your ability to tolerate risk.

Insurance products help mitigate risk. If you’d like a little more certainty in your investing, consider increasing your commitment to properly designed fixed-life insurance products. With the right insurance, your principal is guaranteed, and so could the growth of your money every year. Under certain policies, you could receive tax-free dividends from reputable life insurance companies and borrow against your cash value to take advantage of wealth-enhancing opportunities.

Complacency can threaten wealth. If you were among those investors who did well in 2021, it’s crucial you understand why. The pandemic continues to influence the economy, so an investment strategy that worked this year may not perform as well next year. Reviewing your objectives and goals annually is a must in order to address any market changes that could affect your strategic plan going forward. This kind of planning can be sustained over the long term to help match your returns to your risks.

We live in a volatile age. The whole landscape has changed in recent years for many investors, and it’s harder than ever to go it alone. Let’s keep in contact throughout the year. I am always available if you have any questions or concerns about the performance of your portfolio. Let’s work together to prepare for whatever financial ups and downs 2022 brings.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

The cost and availability of Life Insurance depend on many factors such as age, health, and amount of insurance purchased. In addition to premiums, there are contract limitations, fees, exclusions, reductions of benefits, and charges associated with policy. And if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Any guarantees are contingent upon the claims-paying ability of the issuing company.

Loans and withdrawals reduce the policy’s cash value and death benefit and increase the chance that the policy may lapse. If the policy lapses, terminates, is surrendered or becomes a modified endowment, the loan balance at such time would generally be viewed as distributed and taxable under the general rules for distributions of policy cash values.


Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC. LPL Financial and GENESIS Wealth Management LLC are separate entities.

Please note—investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting, or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

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