Set yourself up for success: Your annual goal planning checklist

Why do New Year's resolutions go off the rails? There are many reasons, but the most common is that they're just not specific enough. Apply the SMART approach — specific, measurable, achievable, relevant, time-bound — to your goals to increase your chances of success.

How to get started:

Create specific goals. Setting SMART goals makes you more accountable. Instead of saying, “I'm going to save up for a new cell phone,” make the goal tangible: “I'm putting $200 a month into a savings account for the purchase of a new cell phone.” As another example, rather than saying, “I'm going to pay down my credit card debt,” set a time limit: “I'll have my credit card debt paid down by September.”

As your life changes, your investments and financial portfolio may need to be reviewed and updated. Make sure your asset allocation — the overall mix of stocks, bonds and cash in your portfolio — is one you're comfortable with and lines up with your goals, timeframe and tolerance for risk.

How to get started:

Speak to an advisor about your situation. Review your portfolio to make sure it aligns with your goals, objectives and risk tolerance. Determining the appropriate asset allocation for your portfolio is an important step towards setting yourself up for success — getting solid advice from an advisor can really add value.

Incorporating tax planning into your overall plan may help to protect your wealth, reduce your taxes and help you reach your goals more quickly.

How to get started:

Everyone’s taxes look a little different, so get familiar with your specific situation. Working with an advisor, and tax and accounting professionals, can help you understand the tax deductions, credits and strategies available to you. That could include deciding whether it makes sense to contribute to your RRSP this year. 

Your retirement savings goal may look entirely different than someone else's; it all depends on your situation, the age at which you want to retire and your retirement vision.

Keeping in mind that overall life expectancy has increased — which may mean you run the risk of outliving your savings — it’s in your best interest to create a retirement plan that works for you.

Financial goals aren’t always about growing your wealth. They can also be about protecting what you have and sharing your wealth with the people and charitable causes you care most about. Having an estate plan can help you to achieve those goals.

How to get started:

Consider your wishes for supporting and sharing your wealth with your spouse or common-law partner, children, other family members, charities and even pets. Make sure you have a will to document your testamentary wishes, including who should benefit from your estate, who should administer your estate and how your estate should be managed. Review your will when you experience major life changes, such as marriage or the birth of a child, and at least every five years.

If you don’t already have one, consider getting a life insurance policy. This can help dependent family members replace lost income due to your death, pay for estate expenses such as taxes, or provide funds for a gift to a loved one or charity.

Don’t forget to reflect on your past wins as you get prepared to tackle new goals. There's nothing like the start of a new year to take a fresh look at your financial health. Make this the year you turn your good intentions into real results.

This New Year's Set Goals, Not Resolutions (Forbes)