PLANNING POINTS: As we reflect on 2022, 3 points to guide you in your 2023 decisions

As we start the new year, people start talking about “turning the page” and “putting last year in the rearview mirror.”

But it’s likely that 2022, like many years that preceded it, will be remembered for the challenges it brought us — world unrest, ongoing political issues domestically, the world’s adaptation to COVID along with a “new” challenge we have not experienced for years — inflationary pressures that have provided significant headwinds for the markets.

All of these issues will “redirect” us to a new path in 2023. Life will continue to be different for the foreseeable future and, as in the past, we will learn to adapt. Reflecting on the challenges we have encountered and overcome ideally will provide a road map for managing the inevitable new challenges we will face.

Three tips

Here are three ways to approach 2023 with a constructive and positive outlook:

1. Learn from these experiences.

Russia invading Ukraine is yet another world event that reminds us of our global uncertainty and issues that come with power and control. This situation has had ramifications on the world, both politically and economically, along with the human impact.

This again points out conflicts that arise in other parts of the world can have a major impact back home. Supply chains were disrupted for many reasons for Ukraine but were magnified by the war. The importance of having backup plans, both for business and personal needs, has been brought to the forefront with these developments.

Inflation has become a very real presence in our everyday lives, not only in our monthly expenses and larger expenditures but also our ability to plan going forward.

Account values have been negatively impacted due to Inflation. Establishing a wealth plan that can measure these inflationary pressures, along with changes in your portfolios and their impact on your future financial goals, ideally will illustrate a variety of scenarios and how to accommodate them. By having a plan in place, the hope is that it will provide some comfort in knowing how to manage these variables in your financial health.

When clients develop and refine their ongoing wealth plan, they are able to quantify and assess their comfort level in various aspects of their lives. This allows them to bring these scenarios to light and address them in a positive manner.

The end of 2022 and early 2023 might be a good time to revisit this exercise to see if any recent experiences have reset some of your baselines and impacted your long-term goals.

2. Converting challenges into a positive.

It is sometimes hard to appreciate all the good things in our lives when facing uncertainty and adversity. But positivity and gratitude are essential to overcoming adversity.

If you don't appreciate the good things, it can be difficult to understand where you are in life and where you want to go. Helping others during this time also can make a major impact on both your life perspective and the ones you are there to support.

Yes, it is frustrating to see higher prices in the stores and gas pumps. Yes, it can be disheartening to see your portfolio values decline. Yes, it can get “old” seeing the conflicts in the news.

But choosing a positive outlook is the first step to moving forward in a constructive manner.

As you review your situation, you may once again realize that time cannot be rushed and challenges — that are acknowledged and accepted as a learning event — will provide a clearer path both financially and emotionally.

3. Stay positive and follow your path

What is your 2023 going to be like?

Despite all the uncertainty we're still facing, it is possible to answer this question. The key is to apply what we've learned in the past year to the things in our lives we can control, little by little, each and every day.

As you look ahead, try to set aside the things that are out of your control. Instead, think about what retirement looks like. What is a realistic timeline?

If you are retired, continue to pursue the things that make you happy. These challenges may have altered your path, but you can stay on track by making adjustments to your wealth plan.

Stay on the path and be persistent about fulfilling your goals, whether it is a home remodeling project, helping out with a wedding or college tuition, or taking the dream trip on your bucket list.

Understanding where you are coming from, where you are right now, and where you want to be in this year and beyond is the core of a good wealth plan.

Pete Alepra is managing director-financial advisor with RBC Wealth Management. Comments: (319) 368-7023; peter.alepra@rbc.com. Investment and insurance products offered through RBC are not insured by the FDIC or any other federal agency, are not deposits or guaranteed by a bank and are subject to investment risks.