Why Your Financial Plan Should Include More Than Just Investments
When most people think about financial planning, their minds often jump straight to stocks, bonds, and other investment vehicles. While investing is undeniably a critical component of building wealth, a truly robust financial plan encompasses much more than just your portfolio. To build lasting financial security and peace of mind, it’s important to consider several other vital elements that support and protect your financial future.
Here’s why your financial plan should include much more than just investments:
1. Tax Planning: Keep More of What You Earn
Taxes can significantly impact your net returns, and smart tax planning helps reduce your liabilities. This means more of your hard-earned money stays in your pocket instead of going to the government. Tax planning involves strategies like timing income and deductions, maximizing tax-advantaged accounts, tax diversification, asset location, and understanding how different investments are taxed. Without attention to taxes, even the best investment returns can be diminished by unnecessary tax burdens.
2. Estate Planning: Protect Your Loved Ones and Your Wishes
Estate planning isn’t just for the wealthy or elderly—it’s for anyone who wants to ensure their wishes are honored and their loved ones are cared for. Important documents like wills, trusts, powers of attorney, and healthcare directives lay out how your assets should be handled, who will make decisions if you’re unable, and how your family will be supported. Having these plans in place helps avoid confusion, legal battles, and delays during difficult times. Also, you’d be shocked at how many estate plans go unfunded and are incomplete! Your advisor should help ensure that your beneficiaries align and your trust is funded.
3. Insurance: Guarding Against Life’s Unexpected Setbacks
Life is unpredictable, and setbacks can quickly derail your financial progress. Insurance products—such as life insurance, disability insurance, and health insurance—are essential safety nets. They protect your income, cover medical expenses, and provide financial support to your family if something happens to you. Integrating insurance into your financial plan ensures that you’re not left vulnerable to risks that could otherwise cause significant financial hardship.
4. Charitable Giving: Align Your Values with Your Financial Goals
For many, financial planning is not just about accumulating wealth but also about making a positive impact. Charitable giving is a powerful way to align your values with your finances. Strategic giving can provide tax benefits while supporting causes you care about, creating a legacy that reflects your priorities. Including philanthropy in your plan can bring deeper satisfaction and purpose to your financial journey. With strategic planning, your dollars can make the biggest and most efficient impact.
Why Summer Is a Great Time to Revisit Your Full Financial Plan
Summer often brings a natural pause in the busyness of life—a perfect opportunity to step back and review your financial picture. While it’s easy to focus solely on investments during check-ins, make sure to take time to evaluate your tax strategies, estate documents, insurance coverage, and charitable goals as well. Revisiting these components ensures your plan is comprehensive and resilient to life’s changes.
Is Your Financial Plan All-Inclusive?
Investing wisely is only one piece of the financial planning puzzle. By expanding your focus to include tax planning, estate considerations, insurance protection, and charitable giving, you create a more holistic and effective plan. This approach not only builds wealth but also provides security, peace of mind, and purpose.
If you haven’t reviewed these areas recently, consider making it a priority this summer. If you’d like help crafting a complete financial plan tailored to your unique needs, I’d love to start you on the process of financial organization and freedom.
Recent Articles Written by Kristiana:
Fiduciary Financial Advisors, LLC is a registered investment adviser and does not give legal or tax advice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. The information contained herein has been obtained from a third-party source which is believed to be reliable but is subject to correction for error. Investments involve risk and are not guaranteed. Past performance is not a guarantee or representation of future results.
Fiduciary Financial Advisors does not give legal or tax advice. The information contained does not constitute a solicitation or offer to buy or sell any security and does not purport to be a complete statement of all material facts relating to the strategies and services mentioned.
Summer Paychecks & Smart Money Moves: A Parent’s Guide for Teens with Jobs
Summer jobs are more than just a way for teens to earn extra spending money — they’re valuable opportunities to build financial responsibility and independence. But while the paycheck can be exciting, it’s important for parents and teens alike to understand the tax implications and savings opportunities that come with earning income.
Here’s what every parent should know to help their teen make the most of a summer job:
Income and Taxes: What You Need to Know
Any income your teen earns from a summer job is considered taxable income by the IRS. This means it counts toward their annual income and may require them to file a tax return if it exceeds certain thresholds.
Additionally, if your teen’s income becomes substantial, it could potentially affect their dependent status on your tax return. It’s important to keep track of their earnings and consult tax guidelines or a professional to ensure compliance.
Help Your Teen Understand Tax Filing
Many teens are working and earning for the first time, which can be confusing when tax season rolls around. As a parent, help your teen collect and organize important tax documents like W-2 forms from their employer.
You can also take this opportunity to explain basic tax concepts, such as withholding, filing deadlines, and the importance of keeping good records. Especially if they are still a dependent of yours, keep an eye on how much they are making and withholding - they might be required to file a tax return of their own if their income is above certain limits!
Encourage Saving and Investing Early
A summer job is an ideal time to teach teens the value of saving. Encourage them to set aside a portion of their earnings for future goals—whether that’s college, a big purchase, or simply building an emergency fund. I love to talk to my clients' kids about the bucket strategy. It helps build financial knowledge in a manageable way.
One powerful option to consider is having your teen open a Roth IRA. Because contributions come from earned income, teens can start saving for retirement decades earlier than most adults. The growth potential over time is enormous, and starting young helps build great financial habits.
Financial Independence Starts Here
Working a summer job is often a teen’s first real taste of financial independence. Beyond the paycheck, it’s a chance to learn about budgeting, taxes, giving, saving, and the value of hard work.
By guiding your teen through the tax and savings side of summer earnings, you’re helping them build a strong foundation for a healthy financial future. With a bit of preparation and guidance, your teen’s summer paycheck can become much more than spending money — it can be the start of a lifelong journey toward financial responsibility and security.
Here’s a simple Summer Job Tax & Savings Checklist for parents and teens to use together.
Summer Job Tax & Savings Checklist for Teens and Parents
Before the Job Starts:
Discuss job expectations, pay rate, and work schedule.
Talk about the purpose of money (savings, giving, spending, goal setting, etc.)
Open a separate savings account.
During Employment:
Keep records of hours worked and pay received.
Save all pay stubs and tax forms (W-2).
Set aside a percentage of earnings for savings (aim for 10–20%).
Tax Season Preparation:
Collect W-2 form(s) from employer(s).
Determine if teen needs to file a tax return (IRS rules vary by income).
Understand how earnings affect dependent status on your tax return.
Consider using tax software or consult a tax professional if unsure.
Savings & Investing:
Open a Roth IRA if teen has earned income and is ready to save long-term.
Discuss budgeting basics and the importance of emergency savings.
Encourage regular contributions to savings, even small amounts.
Financial Education:
Talk about paycheck deductions (taxes, Social Security, etc.).
Explain basic tax concepts and filing deadlines.
Use the summer job as an opportunity to build lifelong money habits.
Recent Articles Written by Kristiana:
Fiduciary Financial Advisors, LLC is a registered investment adviser and does not give legal or tax advice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. The information contained herein has been obtained from a third-party source which is believed to be reliable but is subject to correction for error. Investments involve risk and are not guaranteed. Past performance is not a guarantee or representation of future results.
Fiduciary Financial Advisors does not give legal or tax advice. The information contained does not constitute a solicitation or offer to buy or sell any security and does not purport to be a complete statement of all material facts relating to the strategies and services mentioned.
Pass Down More Than Assets: The Heartfelt Gift of a Legacy Letter
When we think about estate planning, our minds often jump straight to wills, trusts, beneficiary forms, and tax strategies. These are essential tools to help transfer wealth, protect loved ones, and honor your wishes. But there’s one deeply meaningful piece of estate planning that isn’t drafted by an attorney or notarized in a lawyer’s office — and that’s a legacy letter.
A legacy letter is a heartfelt message you leave behind for your family and loved ones. It’s a chance to share your values, life lessons, hopes for the future, and expressions of love and gratitude. Unlike legal documents, which focus on financial and material matters, a legacy letter captures the emotional and personal side of your legacy — the story behind the numbers.
What Is a Legacy Letter
A legacy letter is a written document (or even a video or audio recording) addressed to your family, friends, or future generations. It’s not legally binding, and there’s no required format or template. Instead, it’s a personal reflection on your life and the wisdom you wish to pass on.
Think of it as a love letter to your family — one that they can hold onto, revisit, and find comfort in long after you’re gone.
Why It Matters
1. It Personalizes Your Legacy
Financial inheritances are important, but your loved ones will treasure your words far more than any dollar amount. A legacy letter puts your heart and voice into your estate plan and gives deeper meaning to your hard-earned dollars.
2. It Can Provide Emotional Closure
During times of grief, a letter from a loved one can offer tremendous comfort. It can help your heirs feel connected to you and your values, and offer reassurance, encouragement, and peace.
3. It Complements Your Estate Plan
While your legal documents state what you’re passing on, a legacy letter can explain why. For example, you might share the reasoning behind a charitable gift, the hopes you have for a family heirloom, or the significance of a particular decision.
What to Include in a Legacy Letter
There’s no right or wrong way to write a legacy letter, but here are a few meaningful ideas you might consider:
Personal Values and Beliefs
What principles guided your life? What matters most to you, and why?Life Lessons and Wisdom
What have you learned about love, resilience, success, failure, or happiness that you hope others will carry forward?Hopes for the Future
What dreams or wishes do you have for your children, grandchildren, or loved ones?Expressions of Love and Gratitude
Take the opportunity to thank those who made a difference in your life and let them know how much you love them.Family Stories and Traditions
Share special memories, meaningful moments, or the origin of family customs.Reflections on Challenges
If appropriate, you might recount difficult times and how you navigated them — leaving a legacy of resilience and perspective.
The hardest part is often just beginning. Set aside a quiet moment and start jotting down memories, thoughts, or values that matter most to you. It doesn’t have to be perfect or polished — sincerity is far more valuable than eloquence.
You can write one letter addressed to your family as a whole or individual letters to specific loved ones. Some people write their legacy letters alongside updating their will or estate plan, while others create them as a personal project later in life.
Final Thought
As a financial advisor who is closely involved in wealth transfer from one generation to the other, I believe true wealth extends beyond dollars and cents. It’s about values, stories, and the meaningful connections you leave behind. While I am here to help with the technical details of financial planning and building a legacy, I also encourage my clients to consider the personal side of their legacy.
If you’d like to explore how a legacy letter can complement your estate and financial plan — or you simply need help getting started — let me know. I’d love to send you ideas to help you get started and/or keep your final letter on file to pass along to your heirs in a meaningful way.
I am honored to talk with you about the legacy you want to leave behind.
Recent Articles Written by Kristiana:
Fiduciary Financial Advisors, LLC is a registered investment adviser and does not give legal or tax advice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. The information contained herein has been obtained from a third-party source which is believed to be reliable but is subject to correction for error. Investments involve risk and are not guaranteed. Past performance is not a guarantee or representation of future results.
Fiduciary Financial Advisors does not give legal or tax advice. The information contained does not constitute a solicitation or offer to buy or sell any security and does not purport to be a complete statement of all material facts relating to the strategies and services mentioned.
Enduring a Bear Market: How to Stay Steady When the Markets Drop
If you've been watching your investment accounts lately and feeling a little anxious — you're not alone. Bear markets, while a normal part of investing, can test even the most seasoned investor's patience and nerves.
But here's the truth: markets fall, and markets rise. The investors who come out stronger are the ones who stay steady, stay thoughtful, and stick to their long-term plan.
Let's talk about what a bear market really means, and how you can weather it with confidence.
📉 What Is a Bear Market?
A bear market is typically defined as a decline of 20% or more in a major stock market index, like the S&P 500, from its recent peak. While they can feel alarming in the moment, they're a natural part of market cycles. While the most recent dip into bear market territory was quick, and we are not ‘in a bear market’ currently, let’s dive into a few specifics to get a better understanding. Whether it’s this current market volatility or the next, we will most definitely experience more bear markets in the future.
Historically, bear markets have occurred about once every 6 years on average. They tend to be shorter than bull markets, with the average bear market lasting approximately 1-2 years.
That means even though downturns feel intense while you're in them, they tend to be temporary chapters in a much longer investing story.
The chart below puts bear markets into perspective when thinking about the long-term history of the stock market. While painful to endure, they are blips on the radar if you stay invested.
How to Endure a Bear Market Without Losing Your Mind (or Your Money)
Zoom Out and Look at the Big Picture
It's easy to get caught up in day-to-day market swings, but real wealth is built over decades, not days. In the chart above, take note of how every downturn is eventually followed by a recovery and new highs. While past performance is not a predictor of future performance, the stock markets have continued to reach new highs.
Stick to Your Financial Plan
If your portfolio was built with your time horizon, goals, and risk tolerance as cornerstones in your financial plan, it's likely designed to withstand market downturns. Are your goals still the same? Is your timeline intact? If so — stay the course. If you are a client of mine, we prepared for a downturn and have a plan in place for what to do - now is the time to act on that plan.
Focus on What You Can Control
You can't control interest rates, inflation, or the markets. But you can control how you react.
Keep your emergency fund intact. Spend wisely.
Continue regular contributions to retirement accounts and savings plans if at all possible. Remember, there are buying opportunities now that weren’t there a few months ago!
Stay disciplined…even when it hurts.
Use Market Declines as an Opportunity
Bear markets often create chances to buy high-quality investments at lower prices. It's like a sale for long-term investors.
If you have extra cash or have been waiting to invest, now is the time to intentionally deploy that cash into your investment strategy.
Don't Go It Alone
Money decisions get emotional in volatile markets. Having a trusted financial planner by your side can help you make thoughtful, objective choices when emotions run high.
If you're feeling anxious about your investments or future plans, let’s chat. A 20-minute conversation might be all you need to feel grounded again.
Final Thought
Bear markets aren't fun, but they aren't forever. History has shown that patient, disciplined investors tend to be rewarded over time. The key is to endure the tough seasons and take advantage of the opportunity at hand so you're positioned to enjoy the growth that follows.
If you need a listening ear, a portfolio review, or a fresh perspective on your financial strategy, I'm here for you.
Let's schedule a conversation.
Recent Articles Written by Kristiana:
Fiduciary Financial Advisors, LLC is a registered investment adviser and does not give legal or tax advice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. The information contained herein has been obtained from a third-party source which is believed to be reliable but is subject to correction for error. Investments involve risk and are not guaranteed. Past performance is not a guarantee or representation of future results.
Fiduciary Financial Advisors does not give legal or tax advice. The information contained does not constitute a solicitation or offer to buy or sell any security and does not purport to be a complete statement of all material facts relating to the strategies and services mentioned.
Tax-Smart Retirement Withdrawals: How Discipline today results in freedom tomorrow.
One of the most overlooked aspects of retirement planning is your withdrawal strategy—how you take money from your accounts. Without a plan, you could end up paying more taxes than necessary, reducing the longevity of your investments. By strategically withdrawing from your accounts, you can optimize your tax bill and potentially extend the life of your portfolio.
Do not be fooled into thinking that this is something you don’t have to think about until you near retirement age - that could not be further from the truth! The flexibility of your retirement withdrawal strategy is directly tied to the cash flow planning, tax planning, and savings strategy you implement in your working years.
The Three Main Buckets of Tax Diversification
Understanding how different types of retirement accounts are taxed is crucial to a well-structured withdrawal strategy. There are three main tax buckets to consider:
1. Ordinary Income Bucket
These funds are taxed at ordinary income rates, which currently range from 10% to 37%, depending on your marginal tax bracket.
Examples include:
W-2/1099 wages
Business income
Rental income
Ordinary dividends and interest from a taxable brokerage account
High-yield savings interest
Short-term capital gains from a brokerage account or sale of other assets
Withdrawals from traditional IRAs, 401(k)s, and similar tax-deferred accounts
2. Long-Term Capital Gains Bucket
Long-term capital gains are taxed at preferential rates of 0%, 15%, or 20%, depending on your taxable income.
Examples include:
Sales of long-term securities in a brokerage account
Profits from the sale of long-term assets (i.e. rental home, business assets, etc.)
3. Tax-Free Income Bucket
These funds are entirely tax-free when withdrawn under the right conditions.
Examples include:
Roth IRA and Roth 401(k) withdrawals (if qualified)
Principal from savings accounts or after-tax contributions to brokerage accounts
Having a proper ratio of your portfolio in these different tax buckets will not only save you in taxes over your entire lifetime, but it also can add flexibility to other aspects of your financial plan as you near retirement, such as healthcare.
Consider Healthcare Challenges
Be Aware of Health Care Opportunities - Managing taxable income wisely may allow you to qualify for subsidies on the Health Insurance Marketplace by minimizing withdrawals from tax-deferred accounts.
Mind the Medicare IRMAA Surcharges – Medicare premiums are subject to an income-related monthly adjustment amount (IRMAA), based on a two-year look-back period. Large withdrawals from tax-deferred accounts could push you into a higher Medicare premium bracket, unnecessarily increasing healthcare costs.
Focus on What You Can Control
Financial headlines often focus on what’s beyond your control—market fluctuations, Federal Reserve interest rate decisions, or potential tax law changes. Worrying about these external factors can lead to anxiety and inaction. Instead, shift your focus to what you can control: how you save, where/how you invest, and how you structure your future withdrawals.
By diversifying your retirement savings across different tax buckets, you gain more flexibility in deciding how to draw income in retirement. This strategy can help minimize taxes, stay within favorable tax brackets, and strategically pass wealth to heirs.
A Balanced Approach
The best withdrawal strategy depends on your tax bracket, investment returns, and most importantly, your future financial needs. Your specific goals should be the drivers of your financial plan. By taking a thoughtful, tax-aware approach, we can do our best to control what we can, regardless of the noise around us.
It’s never too early to start thinking about tax diversification within your investment portfolio. The discipline you apply during your working years translates to flexibility and freedom in retirement. If you’d like to explore how a tax-efficient savings strategy can impact your financial future, let’s connect!
Recent Articles Written by Kristiana:
Fiduciary Financial Advisors, LLC is a registered investment adviser and does not give legal or tax advice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. The information contained herein has been obtained from a third-party source which is believed to be reliable but is subject to correction for error. Investments involve risk and are not guaranteed. Past performance is not a guarantee or representation of future results.
Fiduciary Financial Advisors does not give legal or tax advice. The information contained does not constitute a solicitation or offer to buy or sell any security and does not purport to be a complete statement of all material facts relating to the strategies and services mentioned.
Financial Love Languages: A Couple’s Guide to Building Wealth Together
For many couples, financial conversations can be a source of tension. Working with clients, I’ve noticed that often this tension stems from a misunderstanding of each other's natural tendencies and values. Sometimes it's difficult to understand and identify our own deep-seeded values - doesn’t everyone just think like I do?!
Understanding each other’s "financial love language" can transform these discussions into opportunities to strengthen your relationship and work toward shared goals. Clarity is kindness!
What Are Financial Love Languages?
The concept of financial love languages adapts the idea of love languages—how people give and receive love—to the world of money. Everyone has a unique relationship with money shaped by their upbringing, experiences, and values. Recognizing your partner’s financial love language can help you navigate differences in spending, saving, investing, and planning habits.
Here are five common financial love languages:
1. The Saver
Core Traits: Loves building a financial safety net and prioritizes long-term security over immediate gratification.
How They Operate: Savers often prefer maintaining a robust emergency fund (at least six months of living expenses) and shy away from unnecessary risks.
How to Support Them: Celebrate their commitment to stability and work together to define clear savings goals, such as retirement planning or purchasing a home.
2. The Spender
Core Traits: Enjoys treating themselves and others, valuing experiences, travel, or material comforts.
How They Operate: Spenders might allocate a specific portion of their budget for indulgences, such as a travel fund or a splurge account.
How to Support Them: Encourage their zest for life by creating a financial plan that accommodates flexible spending while ensuring long-term goals are still prioritized. A bucket strategy can work wonders here!
3. The Investor
Core Traits: Focuses on growing wealth through calculated risks and strategic decisions.
How They Operate: Investors thrive on understanding the details of holdings and might allocate a small portion of their portfolio to speculative opportunities.
How to Support Them: Engage with their enthusiasm by discussing investment strategies and aligning their goals with the broader financial plan. Having a hobby/play account for speculative investments can be a great solution to keep the financial plan on track.
4. The Planner
Core Traits: Thrives on structure, setting budgets, and meticulously tracking financial goals.
How They Operate: Planners love detailed financial plans and tracking progress through spreadsheets or planning software.
How to Support Them: Provide the nitty gritty details of the cashflow plan and retirement projections. Collaborate with your advisor on creating a detailed financial roadmap and schedule regular check-ins to review progress and pivot as needed.
5. The Giver
Core Traits: Finds joy in sharing resources through gifting or charitable contributions.
How They Operate: Givers prioritize supporting loved ones or charitable causes. Working with a great advisor allows for maximum tax-efficiency, making your dollar as generous as possible.
How to Support Them: Work together to incorporate charitable giving into the financial plan, ensuring it aligns with other priorities like savings and investments. Charitable planning is a proactive process that should be woven into the financial plan all year long.
Building a Financial Partnership
Identifying your financial love languages can give you a great starting point to understand deeply held values within one another. Pinpointing your money motivators helps align your approaches and build a stronger financial foundation together.
Having different financial motivations doesn’t mean you can’t create a cohesive plan. With proactive planning and open communication building and sticking to a financial plan can bring a lot of joy to your life!
Money doesn’t have to be a source of stress in your relationship. Instead, it can become a way to deepen your connection and work toward shared dreams. This Valentine’s Day enjoy a heartfelt conversation about your financial future. After all, what’s more romantic than building a life and accomplishing goals together?
Recent Articles Written by Kristiana:
Fiduciary Financial Advisors, LLC is a registered investment adviser and does not give legal or tax advice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. The information contained herein has been obtained from a third-party source which is believed to be reliable but is subject to correction for error. Investments involve risk and are not guaranteed. Past performance is not a guarantee or representation of future results.
Fiduciary Financial Advisors does not give legal or tax advice. The information contained does not constitute a solicitation or offer to buy or sell any security and does not purport to be a complete statement of all material facts relating to the strategies and services mentioned.
Featured In: ApartmentGuide
Kristiana Daniels, CFP®, EA, BFA™ was named an expert in an ApartmentGuide article, a subsidiary of Redfin. Check out the featured article: Tips for Couples Cohabitating for the First Time | ApartmentGuide.com
Fiduciary Financial Advisors, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.
Recent Articles Written by Kristiana:
Financial Planning Feature: Wealth Think Wisdom, vision, wealth: How parents can instill enduring financial habits
Kristiana Daniels, CFP®, EA, BFA™ had the privilege of being featured in Financial Planning, where she shares insights on the importance of instilling enduring financial habits in the next generation.
Kristiana emphasizes the need for proactive and intentional thought behind how we incorporate our children and our client’s children in building solid foundations and generational wealth.
Fiduciary Financial Advisors, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.
Recent Articles Written by Kristiana:
2025 Financial Wellness Checklist: 7 Steps to a Healthier Future
It’s that time of year when everywhere you look, you’re encouraged to reflect on the previous year and set new goals for the one ahead. Don’t forget to take the temperature of your financial health.
Here we sit in 2025! It’s that time of year when everywhere you look, you’re encouraged to reflect on the previous year and set new goals for the one ahead. Physical and mental health goals, career moves, and personal bucket list items often take center stage. But amid all the dreaming, don’t forget to take the temperature of your financial health.
To improve your overall financial well-being this year, here are a few steps to get you started and position yourself for long-term success.
1. Eliminate Unnecessary Expenses
Start by taking inventory of your subscription services. Remember when you signed up for that free trial of Apple Music or HelloFresh six months ago and forgot to cancel it? Oops! Comb through your credit card statements to identify recurring charges for services you no longer use and cancel them.
Go one step further: For services that have increased their prices—like your internet or cable provider—call and ask if there’s a better offer available. You might be surprised at the deals you can secure simply by asking.
2. Review Your Insurance Coverage
If you own a home, chances are its value has increased in recent years. Now is a great time to review your homeowner’s insurance policy to ensure adequate coverage. Did you know an insurance company will only fully cover damage to your home if your policy covers at least 80% of the home’s total replacement value? Keeping your coverage up to date can save you from financial headaches down the line.
Also, review your life insurance. Is the coverage amount still appropriate given your current expenses, income, and anticipated needs? Regular reviews help ensure your family’s financial security remains intact.
3. Automate Your Savings
One of the easiest ways to build your savings is to automate the process. Set up monthly direct deposits or automatic transfers from your checking account to a brokerage account, high-yield savings account, or IRA. Once it’s set up, you’re less likely to miss the money, and your savings will grow without additional effort.
4. Increase Retirement Plan Contributions
Contributing to your employer-provided retirement plan is a relatively painless way to save for the future. Instead of contributing a flat dollar amount, set a percentage of your salary to defer. This way, your contributions automatically increase as your pay grows.
Consider going one step further by increasing your contribution rate by 1-2% this year. A small adjustment like this can have a significant impact over the course of your career.
Additionally, depending on your financial situation, explore deferring income to the Roth feature of your employer’s retirement plan. This option can provide more flexibility in retirement and potential tax savings over your lifetime.
5. Review Estate Planning Documents
Life changes, and so should your estate plan. Ask yourself:
Are the people you’ve named in your will or trust still the right choices?
Is your medical durable power of attorney assigned to the best person to advocate for you in an emergency?
Have your children reached adulthood, and are you now comfortable naming them as successor trustees instead of your sibling?
These details are easy to overlook but crucial to keeping your estate plan aligned with your wishes.
6. Reevaluate Your Financial Goals
Take time to reassess your financial goals. Are they still aligned with what you hope to achieve in the future? Have your priorities shifted? Organize your list of goals and determine what’s most important to you right now.
Also, consider whether you’re making forward progress. If not, identify the roadblocks that might be holding you back. Evaluating your financial health requires reflecting on where you started, understanding where you want to go, and objectively tracking your progress.
7. Explore Tax-Saving Opportunities
Proactive tax planning can save clients significant money over the course of the entire lifetime. Take advantage of tax-advantaged accounts like HSAs and IRAs. Review your withholdings to ensure you’re not giving the government an interest-free loan or facing a big tax bill come April.
If you’re a small business owner or self-employed, consider strategies like maximizing retirement contributions or claiming proper deductions. Tax planning is a year-round activity that will enhance your financial health.
If your financial plan needs a wellness check, let’s connect.
It’s a privilege to walk alongside you on your journey to optimal financial health. By tackling these steps, you can set yourself up for a brighter financial future in 2025 and beyond.
Fiduciary Financial Advisors, LLC is a registered investment adviser and does not give legal or tax advice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. The information contained herein has been obtained from a third-party source which is believed to be reliable but is subject to correction for error. Investments involve risk and are not guaranteed. Past performance is not a guarantee or representation of future results.
Fiduciary Financial Advisors does not give legal or tax advice. The information contained does not constitute a solicitation or offer to buy or sell any security and does not purport to be a complete statement of all material facts relating to the strategies and services mentioned.