The new year is a great time to reflect, revisit priorities and take actions — big and small — to help you stay on track to reach your financial goals.
As you consider your financial situation for 2026, we are here to help identify strategies that can keep you focused and moving forward.
Here are five smart actions to consider:
1. Evaluate any changes to your financial situation
Your financial situation can change a lot in a year. Maybe you are pursuing an exciting new financial goal, such as saving for a big purchase, retiring early or growing your net worth. Or perhaps you are dealing with more subtle lifestyle shifts that affect your cash flow, such as the rising cost of living, workplace benefit changes, job transitions, the phasing out of childcare expenses or new loan payments.
Whatever type of changes you are experiencing, assessing their impact on your day-to-day finances and making a detailed plan to address them can help set you up for success as the year progresses.
Bottom line: Assess any shifts in your income, expenses or financial goals from the past year.
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2. Review your investment portfolio
The beginning of the year is a smart time to review your investment portfolio’s asset allocation based on your goals for the year, revisit your risk tolerance and consider whether rebalancing your portfolio is needed.
Here’s why: In any given year, the market sees both upward and downward movements and, as a result, your investment portfolio may evolve into a different risk profile. Depending on your goals, this may mean you have too many stocks and too few bonds (or vice versa). Rebalancing your portfolio can help address that discrepancy and bring your asset allocation back in line with your original targets. Overall, reviewing your investments and keeping your portfolio aligned with your long-term financial goals is a smart way to start the year.
Bottom line: Annual portfolio reviews help ensure your investments align with your current goals and risk tolerance.
3. Confirm your beneficiary designations
A beneficiary is a person or entity, such as a trust or nonprofit, that you have designated to receive the assets in your financial accounts when you die. Beneficiary designations are incredibly important because they override instructions in your will and allow your assets to pass directly to the beneficiaries without having to go through probate.
As such, all financial accounts (regardless of size) should have specific beneficiaries named. The beginning of the year can be a convenient time to review and update them to ensure they reflect your wishes.
Bottom line: Review and update all beneficiary designations to ensure they reflect your current wishes.
4. Assess your cash reserve
When a financial emergency arises, a cash reserve can help you pay for it and stay on track with your financial goals. Strive to keep three to six months of living expenses in a safer, liquid cash account that is generating interest. A high-interest savings account, money market deposit account or short-term certificate of deposit may be good options to help your reserve keep pace with inflation.
Because your cash reserve is the first line of protection against a financial setback, review it annually to make sure it fits your current needs. If you used some of your cash reserve recently or your circumstances have changed — higher expenses with a new child or new home, for example — it’s worthwhile to reassess and/or replenish it.
Bottom line: Maintain three to six months of living expenses in a liquid, interest-bearing account.
5. Start planning for 2025 and 2026 taxes
As the April 15 deadline for filing 2025 federal tax returns draws closer, you will begin receiving tax documents from employers and other institutions. Whether you file yourself or work with a tax professional, consider organizing these materials earlier in the season to prepare for a tax refund or tax payment.
Additionally, it’s not too early to start thinking about your 2026 return and how a year-round tax strategy can help lower your tax burden. For example, if you’re planning to itemize for 2026, think about how you can maximize your deductions or take advantage of certain tax credits throughout the year. The sooner you start planning, the more flexibility you’ll have to pursue tax strategies that could potentially benefit you.
Bottom line: Begin tax planning now to identify strategies that can help lower your 2026 tax bill.
Feel more confident about the year ahead
The new year offers an ideal opportunity to assess your financial situation and implement strategies that position you for success. We are committed to helping you reach your financial goals.