2025 Resolutions

Answer: Happy New Year and congratulations on taking steps to review and improve your financial plan for the upcoming year. Here are nine resolutions that may help improve your financial confidence level going forward. 

1. Beneficiary review 

If your retirement account beneficiaries aren’t correctly documented, the decision of who receives distribution of the assets at your passing may be determined by federal or state law or by the default plan document used in your retirement accounts. How long has it been since you last updated your designations? Have life changes such as divorce, remarriage, births, deaths, state of residence occurred since then? Then it’s time to make appropriate revisions.  

Update your beneficiary listings on wills, life insurance, annuities, IRAs, 401(k)s, qualified plans, and anything else that would affect your heirs. If you’ve named a trust, have any relevant tax laws changed? Have you provided for the possibility that your primary beneficiary may die before you? Does your plan address the simultaneous death of you and your spouse? An estate attorney can help walk you through these various scenarios. 

2. Flexible liquidity 

It’s said that cash is King, but there are tradeoffs too. Inflation erosion and lost opportunities can lessen the real value of cash if you hold too much. Lack of access to adequate cash may cause greater problems if you need to draw from investments. Identifying the amount of cash to hold that matches your needs and goals is important and may help you avoid disrupting your long-term plans. 

The right liquidity strategy is different for every investor and could incorporate cash reserves, cash alternatives, highly liquid securities, lines of credit, margin loans or even structured lending. Multiple institutions and account owners can be used to hold more than $250,000 with FDIC guarantees. 

3. Evaluate retirement progress 

Retirement plans should be monitored on an ongoing basis. Changes may need to be made given your current lifestyle and the market environment. Don’t focus only on valuations; understand what types of securities you hold, expected cash flows, contingency plans, assumed rate of return, inflation rates and time frame.  

4. Account titling 

Haphazard account titling can create problems later. If one partner dies and an account is titled only in their name, the survivor can’t readily access those assets. The solution may be creating joint accounts, but it’s not always that simple. Titling has implications across a range of estate planning issues, as well as other situations such as Medicaid eligibility and borrowing power, too. 

5. Charitable strategies 

Giving comes from the heart, but you can also do well when doing good. For example, consider whether or not it makes sense to donate low-cost-basis stocks instead of cash or learn about establishing a donor advised fund (DAF) to take an upfront deduction for contributions made over the next several years. Give, but do so with an eye toward reducing your tax liability. To learn more about the potential risks and benefits of donor advised funds, please contact your CERTIFIED FINANCIAL PLANNER® Professional (CFP®). Donors are urged to consult their attorneys, accountants, or tax advisors with respect to questions relating to the deductibility of various types of contributions to a donor advised fund for federal and state tax purposes. 

6. Family conversations 

Communication is key in sustaining the benefits of wealth for generations. Consider creating a family mission statement outlining a shared vision for your wealth and legacy. This should include nonfinancial topics, too, like your values, expectations, and important life lessons. 

7. Digitize record keeping 

You likely receive emails, letters, reports, and updates from multiple accounts. Consider going paperless and centralizing important files in one place to reduce frustration and ensure easy access when needed. We provide access to a secure storage tool called the vault that can help. 

8. Invest with your values 

Your portfolio should reflect what matters to you. You may want to avoid particular industries and actively pursuing others. You may want to support companies with strong data privacy initiatives or promote the transition to clean. Your portfolio can be tailored to reflect priorities. 

9. Check in with your advisor 

Your CFP® can offer specialized tools, impartiality and experience earned by dealing with many market cycles and client situations. Communicate openly about what’s happening with you today and what may happen in the future. It’s difficult to manage what we aren’t aware of, so err on the side of over-communicating and establish a regular check-in schedule for the year ahead. 

These suggestions are a starting point. No two long-term plans are identical. Reach out to your advisor for more specific guidance about obtaining your goals in 2025. Stay focused and plan accordingly.  

https://www.raymondjames.com/commentary-and-insights/retirement-longevity/2024/10/23/the-ins-and-outs-of-nonqualified-deferred-compensationRaymond James & Associates, Inc., member New York Stock Exchange/SIPC. The opinions expressed are those of the writer as of December 22, 2024,  but not necessarily those of Raymond James and Associates, and subject to change at any time based on market conditions and other factors.There is no guarantee that the statements, opinions, or forecasts provided herein will prove to be correct. You should discuss any tax or legal matters with the appropriate professional. Investing involves risk, and you may incur a profit or loss regardless of strategy selected. Every investor’s situation is unique, and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your induvial situation.