Markus Andrews

More than half of American workers feel they are behind on retirement savings, according to a Bankrate survey that polled 2,445 U.S. adults in August.
For 2025, employees can defer $23,500 into 401(k) plans, plus an extra $7,500 for those age 50 and older.
But the catch-up contribution limit rises to $11,250 for those age 60 to 63 in 2025, thanks to a change from Secure 2.0.

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If you’re ready to focus on retirement in 2025, early January could be the perfect time to boost your 401(k) plan contributions, financial experts say. 
More than half of American workers feel they are behind on retirement savings, according to a Bankrate survey that polled 2,445 U.S. adults in August.

But starting in 2025, your 401(k) plan has a higher contribution limit — and a special catch-up for older investors — that could help grow your nest egg.
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For 2025, you can defer $23,500 into your 401(k) plan, up from $23,000 in 2024. Investors age 50 and older can make catch-up contributions of $7,500 on top of the $23,500 limit.
Typically, it takes a couple of paychecks for 401(k) deferral changes to go into effect, according to Boston-area certified financial planner Catherine Valega, founder of Green Bee Advisory.
Boosting your contribution to max out deferrals can be easier earlier in the year because the higher percentage is spread across more paychecks.

Be aggressive with your investments, especially if you have decades until retirement.

Catherine Valega
Founder of Green Bee Advisory

“Be aggressive with your investments, especially if you have decades until retirement,” said Valega, who urges clients to max out their 401(k) plans if possible.
Starting in 2025, there’s also a special catch-up limit for investors age 60 to 63, thanks to a change enacted via Secure 2.0. Instead of $7,500, this group can save $11,250 for catch-up contributions, which brings their total deferral limit to $34,750 for 2025. 

Invest ‘as much as you feel comfortable’

While many investors aim to max out 401(k) deferrals, it can be difficult with other short-term goals, like paying off debt or buying a home.
To that point, roughly 14% of employees maxed out 401(k) plans in 2023, according to a 2024 Vanguard report, based on data from 1,500 qualified plans and nearly 5 million participants.
Max contributors were typically older, with higher income and a longer tenure with their current employer, the report found.  

Ultimately, you should defer “as much as you feel comfortable” not tapping until retirement, said CFP George Gagliardi, founder of Coromandel Wealth Strategies in Lexington, Massachusetts. Otherwise, you could owe a 10% penalty and taxes for early withdrawals, with some exceptions.     
Plus, you need a “sufficient emergency fund” outside of your retirement savings, he said. 
Typically, experts recommend a minimum of three to six months of expenses for an emergency fund, depending on your family’s circumstances.   More

While the Biden administration withdrew its sweeping student loan forgiveness plans, borrowers should still look into the existing debt cancellation programs.
Those include the U.S. Department of Education’s income-driven repayment plans, and a host of federal and state-level opportunities.

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While the Biden administration withdrew its plans to forgive student loan debt for millions of people, borrowers should look into the many other existing debt cancellation opportunities, experts say.
The U.S. Department of Education posted notices in the Federal Register in December that it was pulling its wide-scale loan forgiveness plans. The department cited “operational challenges,” and experts say political difficulties likely also played a role.

Republican-led states have filed lawsuits to stop nearly all of President Joe Biden’s previous efforts at eliminating education debt. Meanwhile, President-elect Donald Trump is a vocal critic of student loan forgiveness, and on the campaign trail called Biden’s attempts “vile” and “not even legal.”
As a result, at least for the foreseeable future, federal student loan holders should not expect a wide-scale debt forgiveness policy, experts said.
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There is good news, however. There are a still a number of more targeted student loan forgiveness programs available to individual borrowers.

Affordable repayment options with forgiveness

The U.S. Department of Education’s income-driven repayment plans can be a great option for borrowers with worries about how to pay their bills and hopes for eventual debt erasure, experts say.

IDR plans set your monthly bill based on your income and family size — and lead to loan forgiveness after a certain period, often 20 years or 25 years.
The Biden administration tried to make available a new IDR plan that would have lowered many borrowers’ payments even further compared with the existing plans, and forgiven the debt sooner.
However, that program, the Saving on a Valuable Education plan, is tied up from GOP-led legal challenges and faces an uncertain fate with the upcoming administration.
Still, there are a number of IDR plans that remain open to borrowers.

Borrowers should first check to see if they qualify for the Pay as You Earn Plan, or PAYE, said higher education expert Mark Kantrowitz.
That’s because it tends to be the most affordable option.
For example, your monthly bills can be limited to 10% of your discretionary income and your debt may be wiped out after 20 years. Under the plan, borrowers also make no payments on the first $22,590 of their income as an individual, or $46,800 for a family of four, according to a Dec. 18 press release by the Education Department.
There are several tools available online to help you determine how much your monthly student loan bill would be under different plans.

Federal and state student loan forgiveness

For now, the Education Department still offers a wide range of student loan forgiveness programs, including Public Service Loan Forgiveness and Teacher Loan Forgiveness, experts said.
PSLF allows certain not-for-profit and government employees to have their federal student loans cleared after 10 years of on-time payments. Under TLF, those who teach full time for five consecutive academic years in a low-income school or educational service agency can be eligible for loan forgiveness of up to $17,500.
At Studentaid.gov, borrowers can search for more federal relief options that remain available.
Meanwhile, The Institute of Student Loan Advisors has a database of student loan forgiveness programs by state.
For example, in California, licensed mental health professionals who work at certain facilities for a set amount of time may be eligible for up to $15,000 in loan assistance.
The Maine Dental Education Loan Repayment Program offers a total of $100,000 in student loan repayment assistance to dentists in underserved areas of the state.
Other state programs may offer forgiveness based on your finances rather than your occupation.
In New York, the Get On Your Feet Loan Forgiveness Program allows certain residents to get up to 24 months of their income-driven repayment plan payments forgiven. Among other qualification requirements, borrowers must have an adjusted gross income of less than $50,000 a year.

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Elon Musk and Vivek Ramaswamy, whom President-elect Donald Trump appointed to lead a new government efficiency team, said they intend to call federal employees back to the office five days a week.
Companies such as Amazon and The Washington Post are adopting a similar policy in 2025.
But many companies will keep remote or hybrid work arrangements, largely because they boost profits, economists said.
Some view return-to-office mandates as a stealthy way to reduce employee head count.

From left, Elon Musk, House Speaker Mike Johnson and Vivek Ramaswamy arrive for a meeting on Capitol Hill on Dec. 5, 2024.
Al Drago/Bloomberg via Getty Images

When Elon Musk and Vivek Ramaswamy laid out their vision for slashing the size of the federal government, they touted plans to bring workers back to the office full-time.
Working from home was a “Covid-era privilege,” the duo, appointed by President-elect Donald Trump to lead a new so-called Department of Government Efficiency, wrote in a Nov. 20 Wall Street Journal op-ed.

But labor economists don’t see the pandemic-era uptick in remote work as a passing fad.
Instead, they view it as an enduring feature of the U.S. job market.
“Working from home is here to stay,” said Nick Bloom, an economics professor at Stanford University who studies workplace management practices.

Amazon, Washington Post curtail remote work

Many big-name employers have curtailed remote work.
In September, Amazon CEO Andy Jassy announced a full-time in-office policy for corporate staffers starting in 2025. The Washington Post recently announced a similar policy. UPS, Boeing and JPMorgan Chase have called some employees back to the office five days a week.

Others have cut the number of remote workdays as part of a “hybrid” arrangement, where employees split time in and out of office. Disney, for example, required four days a week of in-office work starting in 2023.

However, data shows remote work hasn’t fizzled out.
More than 60% of paid, full workdays were done out of the office at the peak in early 2020 — up from less than 10% before the pandemic, according to WFH Research, a project run jointly by researchers from MIT, Stanford, the University of Chicago and Instituto Tecnológico Autónomo de México.
That share has since fallen by more than half. However, it has remained flat at between 25% and 30% for two years, according to WFH Research data as of December.
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“Levels of working from home have been totally stable since January 2023,” Bloom said.
About 8% of job listings on Indeed advertised remote or hybrid work in November, down from a high of 10% in February 2022 but well above the 3% share in 2019.
“Remote work isn’t going away, but it is likely past its peak,” said Allison Shrivastava, an economist at Indeed.

Remote work is ‘hugely profitable’ for companies

Remote work — primarily hybrid work — has staying power because it’s “hugely profitable” for companies, Bloom said.
For one, workers’ productivity doesn’t seem to increase if they go to the office more than three days a week, said Bloom, citing research he co-authored that was published in the journal Nature in June.

Workers value the ability to work from home. Additional days mandated in the office increase employee turnover, which is “hugely costly” to firms, Bloom said.
Leaving workers’ output unchanged and reducing attrition therefore boosts profits, he said. A typical large company with tens of thousands of employees can increase profits by tens of millions of dollars a year by reducing turnover costs, he said.

A ‘covert’ way to lay off workers?

Musk and Ramaswamy said they aim to require federal employees to return to the office full-time precisely because they expect the policy would increase attrition.
“Requiring federal employees to come to the office five days a week would result in a wave of voluntary terminations that we welcome,” they wrote in the November op-ed.

Remote work isn’t going away, but it is likely past its peak.

Allison Shrivastava
economist at Indeed

Likewise, companies may be using return-to-office mandates as a “covert strategy for headcount reduction,” according to a recent ZipRecruiter employer survey.
Some organizations cite cultural and productivity concerns as the primary reasons for return-to-office policies, but ZipRecruiter said such concerns may be “rooted more in perception than data.”
Jassy, Amazon’s CEO, denied in a November meeting that the company’s five-day in-office policy amounted to a “backdoor layoff,” according to meeting notes obtained by CNBC. The decision “is very much about our culture and strengthening our culture,” he said. More

The country’s roughly 40 million federal student loan borrowers should brace for change when President Joe Biden exits office toward the end of the month.
Here are some steps borrowers can take now to be prepared for the Trump administration, experts said.

U.S. President Joe Biden shakes hands with U.S. President-elect Donald Trump in the Oval Office of the White House on November 13, 2024 in Washington, DC. 
Alex Wong | Getty Images

The country’s roughly 40 million federal student loan borrowers should brace for changes related to their debt when President Joe Biden exits office toward the end of the month.
President-elect Donald Trump takes a more critical view of student loan forgiveness policies, for example. And the Biden administration’s latest repayment plan for borrowers, the Saving on a Valuable Education plan, or SAVE, may not survive.

“For those worried about SAVE going away, I think it probably will, unfortunately,” Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit, told CNBC shortly after the election.
Here are some steps borrowers can take now to be prepared for the Trump administration, experts said.

Understand your remaining relief options

With Biden’s wide-scale student loan forgiveness plans withdrawn and the SAVE plan facing an uncertain fate, it would behoove borrowers to understand the range of relief options still available to them.
For one, consumer advocates believe the Public Service Loan Forgiveness program isn’t going anywhere anytime soon. Signed into law by President George W. Bush in 2007, PSLF allows certain not-for-profit and government employees to have their federal student loans canceled after a decade of payments.
“PSLF is written into federal law by a Republican president, and it would take an act of Congress to eliminate it,” Mayotte said in a November interview. “Not even all the Republicans want it gone, so such a law change is extremely unlikely.”

Even if lawmakers did do away with the program, that change would only apply to new student loan borrowers, Mayotte said. Current borrowers would still be able to work toward loan forgiveness under the program.
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Meanwhile, the U.S. Department of Education recently announced it was reopening two student loan repayment plans while the SAVE plan remains tied up in legal troubles. That leaves borrowers with more affordable choices to tackle their debt.
Those two options are: the Pay As You Earn Repayment Plan and the Income-Contingent Repayment Plan. They’re both income-driven repayment plans, which means they set your monthly bill based on your income and family size, and lead to debt forgiveness after a certain period. The Education Department says those plans will be open for enrollment until July 1, 2027.
Borrowers who are facing deeper financial struggles may still be able to access different deferments and forbearances under the Trump administration.
If you’re out of work, you can request an unemployment deferment with your servicer. If you’re dealing with another financial challenge, meanwhile, you may be eligible for an economic hardship deferment. Those who qualify for a hardship deferment include people receiving certain types of federal or state aid.
Other, lesser-known deferments include the graduate fellowship deferment, the military service and post-active duty deferment, and the cancer treatment deferment.

Make sure your records are up to date

Under the first Trump administration, student loan borrowers experienced a slowdown in relief, consumer advocates say. The Biden administration took several steps to improve existing student loan relief programs.
Given the change in administrations, “it’s essential for a borrower to check their loan status to ensure all details are accurate, and to stay updated on any correspondences regarding their loans,” said Elaine Rubin, director of corporate communications at Edvisors, which helps students navigate college costs and borrowing.
Borrowers who are pursuing loan forgiveness, such as under an income-driven repayment plan or PSLF, should ask their servicer for the latest information on how many qualifying payments they’ve made on their timeline to debt erasure.

Keep records of your loan repayment progress and current balance in case there are any miscommunications when the Trump administration comes in, consumer advocates said. Having a detailed record of your loan payments will help you make the case for any relief to which you’re entitled.
If you run into any problems with your student loan servicer, you can file a complaint with the Education Department’s feedback system at Studentaid.gov/feedback. Issues can also be reported to Federal Student Aid’s ombudsman.

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To avoid overspending during the holidays, people need to plan ahead and create a spending budget, experts said.
There are steps you can take now if you spent too much this season.

Ezra Bailey | Stone | Getty Images

Opening presents during the holidays is of course a lot of fun. But for many, opening those credit card statements will be just the opposite.
Months before the holidays hit, consumers were already bracing for the anticipated costs.

More than half of 2024 holiday shoppers, or 55%, felt stress at the costs associated with the season, according to a survey conducted online in September by The Harris Poll on behalf of NerdWallet.
Still, 32% of consumers thought it was important to purchase holiday gifts and experiences to show their love for family and friends, despite the expenses, the survey found.
“The holidays are hyped 24/7 for weeks before the actual days,” said Carrie Rattle, a financial therapist in New York. “This builds a level of almost manic euphoria and gives us permission to ignore a spending plan, achieve instant gratification and worry about the aftershocks later.”
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Those aftershocks are likely being felt right around now.

To that point, 10% of holiday shoppers this year were considering tapping their emergency savings for gifts, according to NerdWallet. Meanwhile, 9% said they’d prioritize their gift purchases over debt payments or other bills. (Some 2,000 adults ages 18 and older were polled.)
To avoid overspending during the holidays, people need to plan ahead and create a spending budget, experts say. There are steps you can take now to avoid a repeat next year.

Plan ahead and ‘bookend your shopping time’

It’s best to start thinking about big purchases, such as for the holidays, “when you are calm and rational,” Rattle said. That will likely be far in advance of when those events take place.
“Before the tide of emotional shopping overtakes you, know what you want to spend,” Rattle said.
This way, you can also take your time deciding what gifts you want to get people and to research the costs.
It can be a good idea to save throughout the year for the holidays, said Kristen Euretig, a certified financial planner and founder of Brooklyn Plans.
“You can simply set aside a monthly amount to a dedicated savings account and reserve it for holiday expenses,” Euretig said.
Starting early will also allow you to take advantage of different sales that pop up throughout the year, Euretig added.

Rattle recommends people make a list of the gifts they want to buy far in advance, and then space out their purchases to avoid breaking your budget.
“Buy once a week,” she said. “Bookend your shopping time by having an obligation before shopping, and right after your targeted completion time.”
“When you control your purchasing time you also control browsing,” Rattle added.
You can also be on the lookout for which of the gifts you bought people were actually put to use, she said.
“Reflecting on this helps you realistically separate what is truly valued by the receiver,” Rattle added.

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ETF Strategist

ETF Street
ETF Strategist

Assets in U.S. exchange-traded funds have topped $10 trillion for the first time in November, according to the latest data from Cerulli Associates.
As 2024 comes to a close, here are some ETF trends that dominated the year, based on the latest data.

Pedestrians walk in front of the New York Stock Exchange, decorated with a giant U.S. flag, in New York City, Nov. 6, 2024.
China News Service | China News Service | Getty Images

Assets in U.S. exchange-traded funds in November topped $10 trillion for the first time, according to the latest data from Cerulli Associates.
ETFs — funds that invest in stocks, bonds or other assets and trade on national stock exchanges — reached $156 billion in flows for November, surpassing previous monthly flow records.

The activity is “on par with elevated activity typically seen toward the end of the year,” Cerulli reported.
Research from Morningstar pointed to a “Trump bump” that helped U.S. funds — including both ETFs and mutual funds — take in $115 billion in November, the highest total since April 2021.
As 2024 comes to a close, these are a few of the ETF trends that dominated the year, based on the latest data.

S&P 500 among 2024 fund winners

Year to date, the S&P 500 index is up almost 24%, as of Monday.
The S&P 500 rally, buoyed by the Magnificent Seven stocks — Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms and Tesla — helped account for about half of the index’s gains for the year, according to data and analytics company VettaFi.

Four of the top 10 ETFs for 2024 by flows track the S&P 500 index, according to Cerulli.
The Vanguard 500 Index Fund ranks No. 1 for 2024 year-to-date inflows, according to Cerulli, followed by iShares Core S&P 500 ETF, iShares Bitcoin Trust, Invesco QQQ Trust, Vanguard Total Stock Market Index Fund, iShares Core US Aggregate Bond ETF, SPDR Portfolio S&P 500 ETF, Vanguard Total Bond Market Index Fund, Invesco S&P 500 Equal Weight ETF and Vanguard Growth Index Fund.
Malcolm Ethridge, a certified financial planner and founder and managing partner at Capital Area Planning Group, said he often uses S&P 500 ETFs in client portfolios because they allow for access to company names that would be in any large-cap growth strategy for significantly reduced costs.
While an actively managed fund may charge 50 or 75 basis points, a passive S&P 500 ETF may only charge 10 basis points, he said.
The S&P 500 index, which has had a record run, may be poised to continue to do well as the index rebalances to reflect current market leaders.
“I think this is a case where SPY [SPDR S&P 500 ETF Trust] probably outperforms the majority of fund managers in 2025,” Ethridge said.

Alternative ETFs see record growth

Meanwhile, alternative ETFs in November crossed $400 billion in net assets for the first time, according to Cerulli.
Moreover, the year-over-year asset growth rate for alternative ETFs — at 93% — was highest among all asset classes.
Most of the total alternative ETF market share — 80%, or around $325 billion — comprises digital assets, trading-leveraged equity and derivative income ETFs, according to Cerulli.
Financial advisors reported having just a 3.6% allocation to alternatives in 2024, though that is expected to increase, according to Cerulli. Within existing alternatives allocations, 14.4% is done through the use of ETFs, the firm found.

Crypto ETFs are ‘here to stay’

In January, bitcoin ETFs began trading on U.S. exchanges.
Now, spot bitcoin ETFs hold more digital currency than bitcoin founder Satoshi Nakamoto, VettaFi noted. Despite a “more lackluster” rollout for spot ethereum ETFs this year, crypto ETFs are “here to stay,” according to VettaFi.
The top five new ETFs by assets in 2024 are all bitcoin ETFs, according to Cerulli, based on data through November.
They include iShares Bitcoin Trust ETF at No. 1, followed by Fidelity Wise Origin Bitcoin ETF, ARK 21 Shares Bitcoin ETF, Bitwise Bitcoin ETF, and Grayscale Bitcoin Mini Trust ETF. More

The U.S. Department of Education announced it was reopening two student loan repayment plans, leaving borrowers with more choices for how to tackle their debt.
Here’s what borrowers should know about their repayment options, according to experts.

Hobo_018 | E+ | Getty Images

Why these two plans reopened

The Education Department made the plans available again while its new repayment program, the Saving on a Valuable Education plan, or SAVE, remains tied up in legal battles.
Republican attorneys general in Kansas and Missouri, who led the legal challenges against SAVE, argue that President Joe Biden is essentially trying to find a roundabout way to forgive student debt after the Supreme Court blocked his sweeping debt cancellation plan in June 2023.
The SAVE plan comes with two key provisions that the lawsuits have targeted. It has lower monthly payments than any other federal student loan repayment plan, and it leads to quicker debt erasure for those with small balances.
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While the plan is on hold, the Education Department has put SAVE enrollees in an interest-free forbearance. Having a $0 monthly bill for the time being could be appealing to many borrowers, but there is a downside. To that point, those hoping for loan forgiveness under the income-driven repayment plan’s terms or through Public Service Loan Forgiveness aren’t getting credit for the months that pass. (PSLF offers debt erasure for certain public servants after 10 years of payments.)
Those who enroll in one of the two new repayment plans will get credit, experts say.
“The Department continues to defend in court the authority to cut payments for borrowers with high debts and low incomes through the SAVE Plan,” said U.S. Under Secretary of Education James Kvaal in a statement. “In the meantime, we are making more options available to low-income borrowers, teachers, servicemembers, and other public servants so they can make the best choices for their financial situation.”

How to decide the right repayment plan for you

Some borrowers who are in the SAVE program’s interest-free forbearance might want to sit tight, said higher education expert Mark Kantrowitz. Not having to make payments might be a relief to those who are experiencing any financial struggles.
However, Kantrowitz said, “the forbearance may end under the Trump administration.”
And again, months in the forbearance will not bring you any closer to debt forgiveness, he added.

Those who do want to credit toward debt cancellation under PSLF or an IDR plan may consider switching to one of the Education Department’s other income-driven repayment plans, such as one of the two recently reopened programs, the Pay as You Earn Plan and the Income-Contingent Repayment Plan.
Borrowers should first check to see if they qualify for PAYE, Kantrowitz suggests.
That’s because it tends to be the most affordable option. For example, your monthly bills can be limited to 10% of your discretionary income and your debt may be wiped out after 20 years. Under the plan, borrowers also make no payments on the first $22,590 of their income as an individual, or $46,800 for a family of four, according to the Education Department’s Dec. 18 press release.
For comparison, the ICR plan can offer $0 payments for single individuals making up to $15,060, or $31,200 for a family of four, the Education Department said. Above these amounts, some borrowers’ bills are set at 20% of their income, it added.
There are several tools available online to help you determine how much your monthly bill would be under different plans.
Meanwhile, the Standard Repayment Plan is a good option for borrowers who are not seeking or eligible for loan forgiveness and/or can afford the monthly payments, experts say. Under that plan, payments are fixed and borrowers typically make payments for up to 10 years. More

Paying off debt is a top financial resolution in the new year, according to a recent survey.
Financial advisors say other moves, including prioritizing mindful spending, can help bring better balance to your financial health in the new year.
Here’s some money moves advisors recommend considering in 2025.

Rgstudio | E+ | Getty Images

When it comes to financial resolutions, paying down debt is at the top of many to-do lists for 2025.
But financial advisors who work with clients every day have their own wish lists for what they think should be top financial priorities for 2025.

Here are some tips covering everything from budgeting to estate planning from experts who are members of the CNBC FA Council.
“Start slow and manageable with any new financial goals,” said Lee Baker, a certified financial planner and founder, owner and president of Claris Financial Advisors in Atlanta. “You’re better off getting some wins under your belt than trying to build Rome in a day only to end up frustrated.”

Make sure your budget aligns with your goals

A new year is a great time to revisit where your money is going.
“A little bit of time spent on understanding your actual spending and then deciding if it lines up with your goals and values is time very well spent,” said CFP Jude Boudreaux, a partner and senior financial planner with The Planning Center in New Orleans.
Ask yourself if your spending aligns with your goals and values and if it should continue, he suggested. Once you sit down and look at the numbers, it can help identify where you might want to make changes.

Bringing awareness to your spending can help ensure that you’re making the most of the money you’re taking in, advisors say.
“Mindful spending that reflects personal values can lead to greater satisfaction and stronger relationships,” said Rianka Dorsainvil, a CFP and founder and senior wealth advisor at YGC Wealth.

Evaluate where you can cut back on spending

While credit card debt has climbed to record highs and consumers still contend with higher prices, it’s a great time to streamline your spending.
The new year is also a good time to review your credit and debit card statements for the year, said Ted Jenkin, a CFP and founder and CEO of oXYGen Financial, a financial advisory and wealth management firm based in Atlanta.
Look for subscriptions, apps and memberships you don’t use and cancel them, he said.
Also be sure to take a look at how much you’re paying for streaming services, and where you might be able to cut back, Jenkin said. Multiple streaming service subscriptions can now add up to more than a cable bill. Families may save by cutting the number of subscriptions or by having multiple family members on one account, he said.
Also be sure to take a look at grocery bills and the tendency to add spontaneous purchases that can add up, Jenkin said.

Create a personal investment policy statement

When the market inevitably has ups and downs, the temptation is to react.
But research shows the market’s worst days are often closely followed by the best days. If you sell during a market drop, you’ll miss the upside.
By creating a personal investment policy statement, you can avoid reacting to what’s happening in the market and instead stay focused on your goals, said CFP Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida.
For example, an investor with a long time horizon before retirement may choose to allocate 80% of their portfolio to equities and the remaining 20% to fixed income. When the market drops or soars, they can choose to rebalance back to that 80% equity allocation rather than give in to the temptation to react to the latest moves, McClanahan said.

Try to negotiate a higher salary

The start of a new year usually provides an opportunity to meet with your supervisor or boss to discuss your achievements and value to your team and company, said Cathy Curtis, a CFP and the founder and CEO of Curtis Financial Planning, a fee-only financial planning and investment advisory firm.
Before that meeting, research your market value and determine what salary or other compensation you want to ask for with a clear, concise pitch on why, Curtis said.
Also be sure to evaluate whether your work may be more highly rewarded elsewhere, she said.

Make sure your estate plan is up to date

One area of financial planning that people tend to avoid is estate planning, according to Louis Barajas, a CFP, enrolled agent and CEO of International Private Wealth Advisors in Irvine, California.
For anyone who has young children or who owns property, it’s particularly important to make sure you complete your estate plan, Barajas said.
Notably, estate planning does not necessarily have to be expensive, he said. For people who have financial situations that are not complicated, there are good online estate planning resources that help prepare wills, trusts, powers of attorney and guardian nominations for minimal costs.
Proper estate planning can help ensure your wishes for where you want your money to go are honored when you die. Importantly, that should also include your digital assets, said CFP Preston Cherry, founder and president of Concurrent Financial Planning in Green Bay, Wisconsin.
“These areas require annual reviews to help account for life and money milestones and adjustments in your value system,” Cherry said.
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Set time to meet with family to discuss money

More than half of Americans — 56% — say their parents never discussed money with them, according to a recent Fidelity survey.
To get a family money conversation going, it helps to set a formal time to discuss the topic.
Lazetta Rainey Braxton, a CFP and founder and managing principal of The Real Wealth Coterie, recommends scheduling at least two multigenerational family meetings per year to discuss intergenerational wealth.
Possible topics that could be discussed include financial resolutions, long-term care needs for older generations and the status of estate planning documents.

If married, make your spouse a priority

A successful marriage is often a predictor of personal happiness, said Tim Maurer, a CFP and the chief advisory officer at SignatureFD, with offices in Atlanta and Charlotte, North Carolina.
If you have a spouse, investing more time and money in your marriage will pay off, he said.
Start with open money conversations, where both spouses answer the questions “What’s working?” and “What could work better?” Maurer said.
It also helps to have weekly standing meetings to discuss calendars and budgets, where you can identify any adjustments that need to be made, he said.
Be sure to create a new budget category that is kept sacred for date nights, and strive to schedule that time together weekly, Maurer said.

Identify key financial deadlines — and start early

Whether it’s getting your tax return in before April 15 or a required minimum distribution before Dec. 31, it helps to get started well before the deadline.
“Think about all the things that come up over the course of the year and plan for it early,” said Baker of Claris Financial Advisors in Atlanta.
“Avoid waiting until the last minute,” Baker said. “You and your advisors will benefit.”

Consider gifting money now

For people who are retired or close to retirement and who have the means, it can make sense to give away money to loved ones now rather than wait, said Boudreaux of The Planning Center in New Orleans.
It provides an opportunity to identify the family’s values, and direct money in alignment with that purpose, Boudreaux said. For example, that could include financial help for adult children who are raising grandchildren now, he said.
In 2025, the annual gift tax exclusion will go up to $19,000 per recipient. However, individuals can still make gifts over that amount by filing a gift tax return with the IRS and counting it against their lifetime gift tax exemption, which will be $13.99 million in 2025, Boudreaux said.  
Notably, direct funding for education is not subject to gift tax limitations, he said.

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