As a new year begins, you may want to reflect on your financial progress and consider what adjustments may be needed. Markets change, tax rules evolve, and personal goals shift over time. Reviewing your financial strategy regularly may help you stay aligned with your long-term objectives.
Below are six financial planning moves to consider for 2026. These strategies are designed to help you make more informed decisions about your finances and are intended for educational purposes only.
1. Review and Update Your Financial Plan
A financial plan should be reviewed periodically to ensure it reflects your current goals, assumptions, and circumstances. Life events such as retirement, career changes, family needs, or market conditions may affect your financial outlook.
Consider reviewing your plan to determine whether your retirement projections, spending assumptions, and savings targets are still appropriate. If you do not have a written financial plan, creating one may help provide structure and clarify your priorities.
2. Evaluate Retirement Savings Strategies
Retirement accounts may play an important role in long-term financial planning. Individuals who are still working may consider contributing to employer-sponsored plans such as a 401(k) or 403(b), especially if employer matching contributions are available.
Business owners and self-employed individuals may have access to additional plan types such as SEP IRAs or Solo 401(k) plans, which may offer different contribution limits and flexibility.
Roth accounts and Roth conversion strategies may also be considered as part of a broader tax planning approach. Roth accounts offer tax-free qualified withdrawals, which may help provide tax diversification in retirement.
3. Reassess Investment Risk and Asset Allocation
Over time, market performance may shift the balance of your investment portfolio. For example, strong equity markets may increase the percentage of stocks in your portfolio beyond your original allocation.
It may be helpful to review your risk tolerance, time horizon, and asset mix to determine whether your portfolio still aligns with your objectives. Diversification across asset classes and maintaining appropriate liquidity for near-term expenses may be part of a disciplined investment approach.
4. Review Healthcare and Insurance Planning
Healthcare costs are an important consideration, particularly as you approach retirement. Reviewing health insurance coverage and understanding available options may help you prepare for potential expenses.
Health Savings Accounts (HSAs) may offer tax advantages for individuals enrolled in eligible high-deductible health plans. Retirees should also review Medicare coverage annually, as plan options and costs may change. Long-term care planning is another topic to consider, as extended care needs may significantly impact financial plans.
5. Consider Tax-Efficient Income and Withdrawal Strategies
Taxes may have a meaningful impact on retirement income. Coordinating withdrawals from taxable, tax-deferred, and tax-free accounts may help manage taxable income and provide flexibility.
Tax diversification, asset location strategies, and charitable planning options such as Qualified Charitable Distributions (QCDs) may be appropriate depending on individual circumstances. Reviewing these strategies with a tax or financial professional can help ensure they align with your broader plan.
6. Work With a Financial Professional
Financial planning involves multiple moving parts, including investments, taxes, insurance, estate planning, and Social Security. A financial professional may help coordinate these areas and provide guidance as your situation evolves.
Whether you are preparing for retirement or are already retired, professional guidance may help you evaluate options and make informed decisions.
Putting It All Together
The start of a new year may be a useful time to review your financial strategy. Updating your plan, reviewing savings and investment strategies, addressing healthcare considerations, and evaluating tax planning opportunities may help support long-term financial goals.
At Lightforce Financial, we believe financial planning is an ongoing process. Our team works with clients to help clarify goals, navigate financial complexity, and develop strategies tailored to individual circumstances.
If you would like to review your financial plan for 2026 and beyond, consider scheduling a conversation with our team.
*Always consult with your tax professional when implementing any of these strategies.
Information provided is for educational purposes and should not be construed as individual advice. This content is not a recommendation to buy or sell securities. Investment advice offered through Advisors Resource Council (“ARC”), dba LightForce Financial, a registered investment advisor. Retirement planning strategies should be customized to your individual situation.