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It is the end of November and the year is fast coming to an end. It’s prudent to take some time to review your personal finances and start 2026 with a solid plan- here are 10 things to consider:
- Make a note of any life changes. Example, did you buy a new house or your 1st home or did you add a new family member like having or adopting a child or did you go through an unfortunate event such as a divorce. Mark significant event for future planning.
- Review your 2025 financial goals. Do an assessment, what was accomplished and what still needs to be done in the remaining thirty days.
- Gather your bank and brokerage statements, do a valuation of your hard assets such as real estate, jewelry or art work to get a better understanding of your total assets.
- Get an understanding of your debt. How much student loans were paid and how much balance is left. How much credit card debt is still need to be paid and how much mortgage was paid off – mark down interest rate paid on the debt
- Do evaluation of net worth- how much is your wealth in liquid assets such as bank accounts and how much wealth is in hard assets such as real estate.
- Do assessment of residual cash in checking, savings, money market accounts and Treasury Bills that may come handy should you need emergency funding in case unexpected event such as loss of employment or income. Typically, 6 months of liquid assets are good to have in your account.
- Taxes will be due in April 2026 — are you ready?
Get organized early! Did you maximize your contributions to your 401(k) or IRA for 2025 to help reduce your taxable income and lower your overall tax bill?
If eligible, consider contributing to a Roth IRA using post-tax funds. The 2025 contribution limit is $7,000 if you’re under age 50 or $8,000 if you’re age 50 or older (including the $1,000 catch-up contribution). Roth IRA earnings grow tax-free after age 59½ and are not subject to Required Minimum Distributions (RMDs).
For 2025, the Roth IRA income limits are:
- Single filers: full contribution if modified AGI is below $150,000; partial contribution for $150,000–$165,000.
- Married filing jointly: full contribution if AGI is below $236,000; partial contribution for $236,000–$246,000.
Also, don’t forget your Health Savings Account (HSA) contributions — the 2025 limits are $4,300 for individuals and $8,550 for families, with a $1,000 catch-up contribution allowed for those age 55 or older.
- Note if you transfer any assets as gift to your children. If you donated to Charity then gather the record receipts – they may be tax deductible. Review your estate plans, any Trust that you may have along with Life Insurances and review your personal Will.
- Take advantage of Tax Harvesting- you can deduct up to $3000 of loss on the Securities on your taxes to reduce your Net Income.
- Lastly, do a Retirement Assessment- Are you on the right track – would you have sufficient funds available to support your lifestyle, when you and your spouse can no longer work. Check your social security statements by logging on to the social security site – if you have not already done so, create your online account to review your SSI statement – Your social security benefit is an annuity benefit for life just like a private pension plan-make sure to review your statements from time to time to get a better understanding.
- If any of this above sounds complicated then please post comments or if you need better understanding then do not hesitate to contact Blue Aris – we are here to help you in achieving your financial goals.