A Gameplan for Reaching Your Financial Goals This Year

Conducting a New Year’s Financial Checkup

The beginning of a new year is a great opportunity to reflect on the past and plan for the future. Your life has many facets, so it’s important to look at the whole picture when evaluating your finances. In this blog post, we’ll break down some high-level areas you can assess. 

Reflect on Major Life Events

Big transitions in life can upend your goals and cause you to change your priorities. Reviewing your goals at the beginning of the year will give you a better idea of what to plan for as you head into 2026.

Take note of any major life events from last year. Did you get married or go through a divorce? Did you have a child, adopt a child, or add a dependent? Have your children left for college? Everything from career changes, like promotions or periods of unemployment, to life transitions, like moving or supporting aging parents, will affect your finances. 

Review Your Income-to-Spending Ratio

Old budgets don’t always fit new realities. Maybe you have a child starting college and you’ll need to put more money toward tuition. Maybe you received a promotion, started a new career path, or experienced a job loss. If your income stream has changed, identify areas where you may be spending more than optimal.

Align Money Decisions with Family Values

Each family will have a slightly different approach to paying for wants and needs. Identify your values and align your money decisions around them. 

Is it important to you to save for a house? Do you want to put money aside for college tuition? Your personal priorities and your family goals should guide your money decisions.

Money decisions can also be layered with emotion so it’s helpful to get on the same page regarding financial decisions. This is often where families benefit from an outside perspective. 

Read our blog post about setting smart financial goals.

Review Your Retirement and Investment Contributions

Investing for retirement can be slow, but it shouldn’t grow stagnant.

First, take advantage of your employer's match if you can afford to. This is one of the best ways to maximize your retirement. Secondly, your retirement plan may be set up to rebalance automatically when the market shifts. If you don’t have this automatic option, periodic rebalancing should be done to ensure your portfolio still aligns with your risk tolerance and investment goals.

The parameters on retirement accounts are changing every year. Depending on your age and income bracket, your contribution thresholds will look different. Explore the following plans and corresponding contribution amounts set by the IRS for more insight on maximizing your retirement in 2026. 

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401(k) Plan‍

$24,500: Annual contribution limit for employees under age 50

$8,000: Catch-up contribution limit for employees age 50-59 

$11,250: Catch-up contribution limit for employees age 60-63

>>Learn more

403(b) Plan

$24,500: Annual contribution limit for employees under age 50

$8,000: Catch-up contribution limit for employees age 50-59 

$11,250: Catch-up contribution limit for employees age 60-63

>>Learn more

457 Plan

$24,500: Annual contribution limit for employees under age 50

$8,000: Catch-up contribution limit for employees age 50-59

$11,250: Catch-up contribution limit for employees age 60-63

>>Learn more

IRA

$7,500: Annual contribution limit for individuals under age 50

$1,100: Catch-up contribution limit for individuals over age 50

>>Learn more

Roth IRA

$7,500: Annual contribution limit for individuals under age 50

$1,100: Catch-up contribution limit for individuals over age 50

>>Learn more

It’s important to note that if your wages in 2025 were greater than $150,000, any catch-up contributions you make to a 401(k), 403(b) or 457 retirement plan must be designated as Roth contributions. This means you will pay taxes on your contributions now but they will continue to grow tax-free.

Read our blog post on retirement strategies to learn more about when and how to invest. 

Get Clarity on Your Taxes

At Wealthquest, we believe tax planning should be a year-round occurrence. Knowing where you stand at the opening of the year will help you avoid tax panic in April. January is a great time to gather all your data from the previous year and begin the tax return process. With the help of a financial advisor, you can also start the year by proactively assessing and optimizing any changes to your tax position, including dependents, education credits, filing status, and retirement plan contributions.

Re-Evaluate Financial Goals and Milestones

As a new year begins, take the opportunity to revisit last year’s goals and compare them with your current standing. Identifying numbers for the following categories will give you more clarity on your financial health:

• Identify the amount of debt you have.
• Calculate the percent of your income saved year-to-date.
• Calculate the percent of next year’s income you project to save.
• Identify the status of your emergency fund.
• Calculate your total net worth.

Using Wealthquest’s online Financial Scorecard tool helps identify areas where you might benefit from financial advice. 

> Wealthquest’s Financial Scorecard Assessment

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At Wealthquest, we are committed to fostering clarity and confidence when it comes to your financial well-being. If you’re interested in talking with a financial planner, give us a call. We’re here to help you navigate whatever the year brings. 

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