Essential Tasks To Do This Year
I’ve pulled together a list of essential financial tasks I would recommend to clients for maintaining and improving their financial health and wellbeing this year:
1. Review and Update Your Financial Plan
Reassess your short-term and long-term financial goals
Update your budget to reflect any changes in income or expenses
Evaluate your asset allocation and rebalance if necessary
2. Maximize Retirement Contributions
Aim to max out your 401(k) contributions (2025 limit: $23,000, plus $7,500 catch-up for those 50+)
Consider maxing out IRA contributions (2025 limit: $7,000, plus $1,000 catch-up for those 50+)
Explore options for a Health Savings Account (HSA) if eligible
3. Review and Optimize Your Tax Strategy
Gather necessary documents for tax filing
Consider tax-loss harvesting opportunities
Explore potential deductions and credits
Consult with a tax professional for personalized advice
4. Evaluate and Update Insurance Coverage
Review life, health, disability, and property insurance policies
Consider long-term care insurance if appropriate
Ensure coverage amounts are adequate for your current situation
5. Estate Planning Check-up
Review or create a will and/or trust
Update beneficiary designations on retirement accounts and life insurance policies
Consider establishing or updating advance healthcare directives and power of attorney
6. Build and Maintain an Emergency Fund
Aim for 3-6 months of living expenses in a readily accessible account
Consider high-yield savings accounts for better interest rates
7. Pay Down High-Interest Debt
Prioritize paying off credit card balances and other high-interest loans
Consider debt consolidation or refinancing options if appropriate
8. Invest in Your Financial Education
Stay informed about market trends and economic conditions
Attend financial workshops or webinars
Read reputable financial publications and books
9. Review and Optimize Credit
Check your credit report for errors (annualcreditreport.com offers free reports)
Take steps to improve your credit score if needed
Consider freezing your credit to prevent identity theft
10. Plan for Major Life Events
Prepare financially for upcoming milestones (e.g., marriage, children, home purchase)
Adjust your financial plan accordingly
When you see this list, what do you think? Did I miss anything? I would love to know your thoughts!
Remember, financial planning is an ongoing process. Regular check-ins and adjustments are key to maintaining your financial health and achieving your goals. Don't hesitate to reach out for personalized guidance and support throughout the year.
