The start of a new year often brings a renewed focus on personal and professional goals. January is more than a time for resolutions; it’s an opportunity to step back, assess your financial landscape, and proactively position yourself for the year ahead.
For high income earners the financial decisions you make early in the year can have a measurable influence on long-term outcomes. Aligning your tax strategy, investments, cash flow, and estate plan now before the year gains momentum can help support a more intentional start to the year rather than a reactive one.
Below is a checklist of key planning moves to consider as you begin the new year.
-
Set Clear Goals and Build Accountability Around Them
Every successful financial plan starts with clarity. Begin by asking:
- What do I want to accomplish financially in 2026?
- How do these goals support my broader 5- or 10-year plan?
- What specific actions need to happen this year to stay on track?
Whether your goals involve accelerating wealth accumulation, preparing for a liquidity event, optimizing tax efficiency, or enhancing lifestyle flexibility, articulating them clearly is critical. Sharing these goals with a wealth advisor may help create accountability and ensure your planning remains aligned as circumstances evolve throughout the year.
-
Strengthen and Optimize Cash Flow
The beginning of the year often coincides with salary adjustments, bonuses, or changes in spending priorities, making it an ideal time to revisit cash flow.
Refresh your spending plan.
New priorities such as travel, home projects, education expenses, or charitable commitments can emerge quickly. Updating your spending plan early in the year provides flexibility and helps prevent reactive decisions later.
Rebuild or reinforce emergency reserves.
If year-end spending depleted cash reserves, establish a plan to rebuild them. Adequate liquidity can help protect long-term investments and provide peace of mind during periods of uncertainty or opportunity.
-
Review and Refine Your Investment Strategy
Volatile markets, shifting interest rates, and evolving economic conditions underscore the importance of regular investment reviews. January offers a natural reset.
Rebalance your portfolio.
Market movements may have caused your asset allocation to drift from intended targets. Rebalancing helps realign risk with objectives and creates a framework for managing volatility. This is also an opportune time to evaluate concentrated positions and explore diversification or tax-efficient strategies.
Reassess risk tolerance.
How did you respond to market volatility last year? If market drawdowns caused stress or prompted second-guessing, it may be time to recalibrate risk exposure.
Confirm retirement contribution strategies.
Review planned contributions to retirement accounts, HSAs, and FSAs to ensure you are maximizing opportunities:
- 2026 401(k), 403(b), and 457 contribution limit: $24,500
- Catch-up (age 50+): $8,000*
- Catch-up (ages 60–63): $11,250*
*Beginning in 2026, individuals who earned more than $150,000 in the prior year must make catch-up contributions on a Roth basis in employer-sponsored plans.1
-
Review Risk Management and Insurance Coverage
Insurance may not be a favorite topic, but it plays a critical role in protecting wealth.
Update life and disability insurance.
Promotions, compensation increases, family changes, or new financial obligations may warrant updated coverage. This is also a good time to confirm beneficiary designations.
Assess property and casualty coverage.
With rising premiums and tighter underwriting, annual reviews help identify coverage gaps—particularly if property values have increased or significant renovations have been completed.
-
Align Estate and Legacy Plans with Your Current Intentions
Estate planning is not limited to retirees or ultra-high-net-worth families. Anyone with assets, family responsibilities, or charitable intent benefits from an up-to-date plan.
Review estate documents.
If it has been more than two years, or if your financial or family situation has changed, consider revisiting your estate plan. Pay particular attention to executors, trustees, guardians, and powers of attorney.
Confirm titling and beneficiary designations.
Beneficiary designations override wills and are often overlooked. Reviewing account titling and beneficiary forms helps ensure assets transfer as intended and may help avoid unnecessary complications.
Bringing It All Together
Making these planning moves early in the year allows you to be intentional rather than reactive with your finances. If reviewing this checklist feels overwhelming, you don’t have to navigate it alone.
An Oakworth Wealth Advisor can help you prioritize these decisions, coordinate strategies across disciplines, and build a personalized plan aligned with your long-term goals. If you would like to discuss how these considerations may apply to your situation, we encourage you to reach out to schedule a conversation.
Sources
- Fidelity – Catch-Up Contributions: Key Changes Ahead