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.