January 21, 2025
Many people see January as a reset month and make resolutions they hope to carry throughout the rest of the year. These resolutions often center around exercise, eating habits, and other health or fitness goals. The beginning of the year is also a great time to set financial resolutions, like saving more money, putting a down payment on a new house, starting a new business or investing more wisely. January is the perfect time to review your past year’s finances and set goals for the year ahead. Here are a few tips to help you set and accomplish your financial resolutions in 2025.
The IRS has announced the 2025 contribution limits for 401(k) plans, which reflect adjustments due to inflation and new rules under the SECURE 2.0 Act:
No employer-sponsored plan? Start or grow an individual retirement account (IRA). Small, consistent increases can make a big difference over time.
If giving back is part of your financial plan, now is a great time to strategize your charitable contributions for the year. Options like Qualified charitable distributions (QCDs) may offer tax efficiencies for those age 70.5 or older, allowing donations directly from IRA accounts.
Alternatively, consider establishing a donor-advised fund (DAF), which simplifies managing charitable donations and often offers tax advantages.
Life changes and new circumstances can affect your insurance needs. An annual insurance check-up can provide peace of mind. Take time to review your property, casualty, life, health, and disability insurance to ensure you’re adequately covered.
If you have a high-deductible health plan, consider the tax benefits of contributing to a health savings account (HSA).
It’s easy to forget about beneficiaries on accounts like IRAs, retirement plans, and life insurance policies. However, keeping these designations current is critical, especially after life events such as marriage, divorce, or the loss of a loved one.
Take time to ensure your estate plan reflects your current intentions. Review your will, trusts, healthcare directives, and powers of attorney to confirm they are up to date and consistent with any changes in your family, finances, or tax laws.
Review your credit report annually from all three major credit bureaus: Experian, Equifax, and TransUnion. Checking your credit report can help you identify inaccuracies or signs of identity theft, giving you an opportunity to address issues promptly.
Resolutions aren’t just about starting fresh—they’re about building on what you’ve already achieved. Small, deliberate actions now can lead to significant financial progress in the year ahead.
If you have questions about implementing these resolutions or want guidance tailored to your situation, GHP Investment Advisors is here to help. Reach out to start the conversation.