2026 Financial Kickstart
The start of a new year is more than just a calendar flip, it is also the perfect natural time to assess your financial trajectory. While many people set broad resolutions, a systematic review of your financial life can ensure you are actually moving closer to your goals.
To help get you started, here are five key areas to focus on as you launch into 2026.
1. Reflect and Reset Your Goals
Before diving into the numbers, start with the big picture.
Audit Your Progress: Did you meet the goals you set for last year? Take stock of your recent accomplishments to identify strategies that worked well.
Define New Targets: Have you identified new goals for 2026? If so, assign them a priority and time horizon so they can be incorporated into your overall plan.
Anticipate Life Changes: Are there major life events on the horizon, such as a marriage, job change, or retirement? You should also check if you or a family member will reach a milestone age this year, as this often triggers specific planning rules.
2. Optimize Your Cash Flow & Benefits
January is the ideal time to align your spending plan with your current reality.
Income & Expenses: Do you expect your household income or expenses to change materially this year? If so, adjust your plan to reflect these new realities.
Employee Benefits: Ensure you are taking full advantage of your employer's offerings. Consider maxing out contributions to retirement accounts, Health Savings Accounts (HSAs), or Flexible Spending Accounts (FSAs).
Use It or Lose It: Do you still have funds left in an FSA from last year? If so, make a plan to spend them before the grace period expires.
Spousal Support: If you are married and your spouse does not have earned income, explore Spousal IRA options to boost your household savings.
3. Strengthen Your Portfolio
Markets evolve, and your portfolio should evolve with them and with you.
Risk Tolerance: It is smart to review your investment risk tolerance at the start of the year.
Rebalancing: Do you need to rebalance your portfolio to get back to your target allocation? If you do, remember to consider the tax consequences and trade strategically.
Asset Location: Review the location of your assets. Ideally, you want to hold tax-efficient investments in taxable accounts and tax-inefficient investments in tax-preferred accounts.
4. Tighten Your Safety Net
Wealth building requires a strong defense.
Emergency Fund: Do you need to adjust or replenish your emergency fund after holiday spending?
Insurance Review: Do you expect changes regarding your health? If so, review your health insurance coverage. It is also a good time to review life insurance, disability coverage, and even property insurance if you have made improvements to your home or acquired new valuables.
Estate Planning: Do you need to review your estate plan or the titling of your assets?
5. Tax Preparation & Opportunities
While the tax deadline is months away, early action can save you stress.
Document Gathering: Start collecting tax forms and organizing documents now to prepare for filing your 2025 return.
Last-Minute Contributions: Did you fail to make an IRA contribution for last year? You generally have until Tax Day to make a contribution for the prior tax year.
Roth Conversions: Consider if a Roth conversion would be beneficial for you in this tax year.
The Bottom Line
A comprehensive review now sets the tone for the rest of 2026. Early attention to these details will prevent the financial neglect that can derail your progress towards your goals. Need help? Schedule a free consultation today.
