As suggested by the quote above, wholesale change made overnight is not something we are good at sustaining. However, small changes implemented over time can make a significant difference, and if those changes are rewarding in themselves, we’re more likely to stick with them. So, while creating a radical change in your financial picture with a New Year’s resolution is unlikely to be successful, working through a few important tasks over several sessions can provide peace of mind. Setting aside an hour or so each week over the first month or two of the year can, quite literally, pay dividends over time.

start by collecting your tax information

Set up a folder to collect your financial information for 2024 – 1099s, W-2s, etc. – as it comes in and set aside time to complete the tax organizer as soon as you receive it from your accountant – or input data into whatever tax software you use. Sending your accountant everything on April 1 means they won’t have as much time to follow up with you for more information. They need time to review all your information to be as effective as possible.

revisit your savings plan

If you’re still working, take a look at your overall savings in 2024 as you’re pulling together your information for tax purposes. What does your final pay stub for the year report for your retirement plan contributions? If you’re not maxing out contributions to your employer-sponsored plan at work – such as a 401(k) or 403(b) – the beginning of the year is a great time to make that change as the increased contributions from your paycheck will be spread out over the year. The maximum amount you can contribute for 2025 is $23,500, with an additional $7,500 catch-up contribution for those 50 and over. Beginning in 2025, employees between 60 and 63 can make up to $11,250 in catch-up contributions. 

A back-door Roth retirement plan contribution might make sense for you, as well, either through your employer plan if allowed, or with a Roth IRA.

review and plan your spending

Most credit card companies provide year-end spending reports; it’s helpful to review these to see where your money is going. Are there a few shifts you can make so that your spending better reflects your priorities? If you have any large expenses coming up, plan how you’ll cover those.

If you want to include gifting to family and/or charity in 2025, now is a good time to plan for that. It could also make sense to give appreciated assets rather than cash to children or heirs if they are in significantly lower tax brackets. Whether you’re giving to charity or individuals, gifting highly appreciated investments at market highs is particularly effective.

update your estate and insurance plans

If you haven’t updated your estate plan in the past decade or so, or if you’ve had significant life changes (death, divorce, children) since you last updated your documents, it’s time to revisit those documents. And if you have dependents and obligations like college tuition and mortgage payments, make sure you have insurance – both life insurance and disability insurance – in place so your loved ones don’t have to worry about those important expenses should something happen to you.

find an advisor

A good advisor can help you manage all of these things. They get to know you and your family to understand what’s important to you and help you implement a plan that’s in keeping with those values. At Fulcrum, we combine the expertise of our in-house investment analysts and portfolio managers with the wealth management expertise and high-touch support of our wealth strategy team. The result is a unique approach that allows our clients to feel financially secure and to reflect their values in their investments and their overall wealth plan.

Please reach out to your Fulcrum team at any time with questions and guidance. If you know anyone needing help getting organized and implementing a plan throughout the year, send them our way.