A new year is a great time to check in on your finances. Think of it like a health check-up, but for your money. Is everything on track?Are there things you need to adjust? Let’s walk through a few key areas to make sure you’re set up for success in 2025.
1. Know What You Own and What You Owe
Start with the basics. Take a look at your:
- Assets: Cash, investments, retirement accounts, real estate.
- Debts: Mortgages, loans, credit cards.
Your assets minus your debts = your net worth. If it’s growing, you’re headed in the right direction. If not, it may be time to adjust your spending, saving, or investment strategy.
2. Check Your Investments
Markets change. Your investments should keep up. Ask yourself:
- Do I have the right mix of investments to balance risk and reward?
- Are my accounts performing the way I expect?
- Do I need to make any changes to stay on track?
A quick review now can help prevent surprises later.
3. Plan for Taxes
No one likes paying more taxes than necessary. A few simple steps can help:
- Max out contributions to tax-advantaged accounts like 401(k)s and IRAs.
- Use tax-loss harvesting to offset gains.
- Consider charitable donations for extra deductions.
We have a CPA on our team who can help make sure your tax plan works with your investment plan.
4. Make Sure Your Retirement Plan Is on Track
Retirement might seem far away, but small changes now can make a big difference later. Check:
- Are you saving enough?
- Are you taking full advantage of employer matches?
- Do you have a withdrawal plan if you’re nearing retirement?
5. Review Your Estate Plan
No one likes to think about this, but it’s important. Make sure:
- Your beneficiaries are up to date.
- Your will and trusts reflect your wishes.
- Your family knows your plan.
6. Protect What You Have
Life happens. The right insurance can help. Look at your:
- Life and disability coverage.
- Long-term care plan.
- Property and liability policies.
A little planning now can save a lot of stress later. If you want to go over your financial plan, we’re here to help. Interested in learning more about how to get started? Let’s set up a time to talk.
Read more articles by Joshua Broder