2025 Financial Resolutions: Wealth Management Goals for the New Year

By Collin Stosberg – Wealth Management Advisor

As we near 2025, many people are considering their financial resolutions for the year ahead. Establishing clear wealth management goals can help you build and protect your financial future, providing a roadmap for sustained growth, security, and peace of mind. Here are some wealth management resolutions to consider, along with actionable steps to help you achieve them.

1. Optimize Your Investment Portfolio

Whether you’re new to investing or have an established portfolio, the start of the year is an ideal time to review your investments. A well-optimized portfolio reflects your goals, time horizon, and risk tolerance, but market conditions and personal priorities change over time.

Actionable Steps:

• • Review Asset Allocation: Check that your asset mix (stocks, bonds, cash) aligns with your goals. If market shifts in 2024 changed your allocation, consider rebalancing to stay aligned with your long-term strategy.
  • Tax Efficiency: Consider tax-advantaged accounts and, if applicable, take advantage of tax-loss harvesting to offset capital gains.

2. Increase Savings Contributions

If building savings is on your list for 2025, a key resolution could be to increase your contributions to various accounts, from emergency funds to retirement savings. Small, consistent contributions can significantly impact your financial security over time.

Actionable Steps:

• • Max Out Retirement Accounts: For 2025, the 401(k) contribution limit has risen to $23,500 for those under 50, with an additional $7,500 catch-up contribution for those 50 and older. Contributing up to these limits can help maximize your retirement savings.
  • Automate Savings: Set up automatic transfers to retirement, investment, and emergency savings accounts. Aim to increase the contribution rate, even if just by 1% every year.

3. Plan for Retirement with Updated Projections

It’s easy to let retirement planning take a backseat, especially with other financial priorities. However, an annual review of your retirement plan can ensure that you’re on track to meet your goals, with up-to-date projections to guide you.

Actionable Steps:

• • Estimate Retirement Needs: Use updated projections to estimate the annual income you’ll need in retirement. Consider inflation, healthcare costs, and potential market conditions.
  • Evaluate Income Sources: Review expected Social Security benefits, pensions, and retirement accounts. If gaps exist, consider increasing contributions or adjusting your retirement age to improve your outlook.
  • Consult a Financial Advisor: An advisor can provide personalized guidance, helping you account for tax considerations, market changes, and income needs in your retirement plan.

4. Update or Establish an Estate Plan

An estate plan is not only for the ultra-wealthy—it’s an essential step for anyone wanting to ensure their assets are handled according to their wishes. Life changes, such as marriages, births, and new assets, are excellent reasons to review or create an estate plan.

Actionable Steps:

• • Draft Essential Documents: At minimum, have a will, power of attorney, and healthcare directive. These documents can protect your family, reduce court involvement, and clarify your wishes.
  • Consider a Trust: For more complex estates or those seeking greater control, consider setting up a trust. Trusts can help with tax efficiency, privacy, and flexibility in asset distribution.
  • Review Beneficiaries: Ensure beneficiaries on retirement accounts, insurance policies, and other assets reflect your current wishes.

5. Educate and Involve Family Members

Sharing your financial goals with family members, especially if they involve long-term wealth or estate planning, can foster understanding and preparedness for future financial transitions.

Actionable Steps:

• • Hold a Family Meeting: Share essential details of your estate or succession plans to ensure family members understand and respect your wishes.
  • Discuss Legacy Planning: Consider philanthropic goals or other legacy plans that you wish to implement, and include loved ones in the planning process if appropriate.

  Start Strong with Your 2025 Financial Goals

  While these resolutions cover diverse areas of wealth management, they each contribute to a more secure and purposeful financial future. By setting concrete, actionable goals, you can position yourself for growth and stability in 2025 and beyond. Whether you’re refining an investment strategy, preparing for retirement, or involving family in your legacy planning, a thoughtful approach to your finances can set you up for long-term success.  Please reach out to one of our Wealth Management Advisors to discuss your goals.