Financial Planning

SET YOUR FINANCIAL GOALS

REVIEW YOUR BUDGET

ESTABLISH YOUR EMERGENCY FUND

PRIORITIZE ESTATE PLANNING

STILL CONTRIBUTING TO RETIREMENT?

INVEST IN YOUR FINANCIAL KNOWLEDGE

Goal Setting is Critical to Financial Success

The new year is a great time to set financial goals—some popular goals might include: Setting a savings goal and a plan to help you achieve it Reviewing your existing investment strategy and asset allocation to ensure they still align with your current circumstances and long-term goals Establish (or review) your estate plan to ensure it aligns with your wishes If you already have goals in place, the new year is also a great time to review them! Life changes and your goals may need to evolve accordingly. As always, consulting with a financial advisor can be beneficial in setting and reviewing your short- and long-term goals.

Don’t Wait—Set Your Budget Today!

Now is a great time to review your household budget. Review your current cash flow for potential shortfalls and adjust as needed for the new year. If you don’t have a budget, it’s never too late to make one! Be sure to account for how much money you’re bringing in (after taxes), how much you’re setting aside for savings and how much you spend each month. Ideally, categorize your expense as either non-discretionary (i.e., “must haves”) or discretionary (i.e., “nice to haves”). That way, you know where you can—and can’t—pull back if necessary. If you’re not certain how much you spend each month, consider setting up a spreadsheet to track your expenses for a month or two to get a good handle on your household’s monthly spend. Planning any big trips or one-off expenses? If so, be sure to include these expenses in your budget so they don’t catch you by surprise later. Additionally, if you have any consumer debt, make a plan to pay it off. Prioritize high-interest debt if possible. Finally, if you have a savings goal, check in on your progress regularly. Staying on track with savings and spending year after year goes a long way toward meeting your long-term goals.

Be Financially Prepared

It’s always a good bet to have an emergency fund in case of the unexpected. A good guideline for an emergency fund is enough money to cover 3-6 months of basic household expenses. Having a stable emergency fund allows you to cover necessary expenses without dipping into your retirement savings. Expenses can change over time, so reviewing your emergency reserves at least annually can be beneficial. For example, if you established your fund 10 years ago, the amount you may need for a month’s worth of essential household expenses may look drastically different today. Moreover, if you suspect you may have a large expense (household project or repair, costly medical procedure, major purchase or travel plans) coming in the next 6-12 months, you may want to set aside separate funds to support those items so you don’t have to dip into your emergency fund.

Having an Up-to-Date Estate Plan is Vital

Whether you already have an estate plan and need to review it, or you need to create an estate plan from scratch, the new year is a great time to do so. Having an up-to-date estate plan is vital to ensure your wishes are carried out and to ensure the estate process is as streamlined as possible for your beneficiaries and loved ones. First, if you don’t already have a will or revocable living trust, prepare one. Both are common tools people utilize in estate planning to make their wishes known. A will is a legally binding document that specifies how and when probate assets should be distributed to your beneficiaries after your death. If your estate is large or complex, a revocable living trust may be an appropriate choice for you. A good next step in developing an estate plan is to make a list of your assets, including any property, insurance policies, banking or investment accounts and any other assets you own. Talk to your loved ones about their role in your estate plan to help clarify your wishes. It’s always a good idea to consult an attorney to discuss your options and the legal requirements of your state to create a plan best suited to your goals and personal circumstances. When creating—or reviewing—your estate plan, verify all beneficiary designations are in line with your wishes. Finally, you may want to consider implementing a gifting strategy to reduce potential estate taxes (if any) or to support your charitable endeavors. Like all aspects of financial planning, you should review your estate plan and documents and adjust them should your goals or circumstances change.

Make It Count!

If you are still working and able to, max out your retirement contributions to your 401(k), SIMPLE IRA or other eligible retirement savings plans. If you’re receiving matching funds, your contributions become even more impactful. Contribution limits are rising for some investors in 2025. For 401(k), 403(b), and governmental 457 plans contributors, the maximum annual contribution limit rises to $23,500 in 2025. Increases in 401k catch-up contribution limits, along with a new special catch-up rate for those aged 60-63 also take effect in 2025. IRA contribution limits remain at $7,000 in 2025, and $8,000 for those 50 and older. For those contributing to a SIMPLE plan, the individual contribution limit has risen to $16,500 in 2025. Visit the IRS website for specifics about contribution limits, catch-up contribution amounts, restrictions and more. Maxing out tax-deferred retirement accounts is a great way to reduce your taxable income, while also allowing more of your money to work toward your long-term goals. Of course, you should always review and adjust your retirement savings as necessary to help you reach your goals. This should be something you do throughout the year—not just in January or December. Finally, it’s also wise to review your retirement account beneficiaries annually in case anything has changed.

Learning Never Stops

Have you wanted to learn more about investing, financial planning, or capital markets? If so, now’s a great time to get started. Whether watching informative videos, reading investing books, listening to your favorite investing podcast or engaging with your financial advisor, taking the time to educate yourself about financial markets is a worthwhile endeavor for the long-term investor.

If you don’t already have long-term goals, set them. If you have goals set, use this opportunity to review your current goals. Click here to learn more.

Goal Setting is Critical to Financial Success

Review your household budget at least annually, checking for potential savings opportunities, new expenses and plan to adjust your spending and savings habits accordingly. Click here to learn more.

Don’t Wait—Set Your Budget Today!

Having an emergency fund is important because unexpected expenses can—and do—occur. Click here to learn more.

Be Financially Prepared

Create an estate plan or take the time to review and update your existing plan. Click here to learn more.

Having an Up-to-Date Estate Plan is Vital

Still working? If so, consider contributing as much as possible to your retirement savings. Click here to learn more.

Make It Count!

There is never a bad time to invest in your financial knowledge. Click here to learn more.

Learning Never Stops

Scroll down and hover over to learn more tips about financial planning.