5 advisors offer important tips for managing your money in 2025

Focus on financial stability to secure a brighter future.

Here are some of the top resolutions for 2025, according to the experts.

Top Resolutions for 2025

The top resolutions for 2025, according to certified financial planners, are focused on achieving financial stability, saving for retirement, and paying off debt. Here are some of the top resolutions for 2025:

Achieving Financial Stability

Create a budget and track expenses

Build an emergency fund

Increase income through side hustles or raises

Pay off high-interest debt

Invest in a retirement account

Achieving financial stability is a top priority for many households in 2025. Certified financial planners recommend creating a budget and tracking expenses to understand where money is going and make informed decisions.

Barry Glassman: The tax implications of retirement savings accounts should be considered. Kamila Elliott: Build a personal emergency fund to cover 3-6 months of living expenses. Barry Glassman: The importance of diversifying investments cannot be overstated. Kamila Elliott: Regularly review and update your financial plan to ensure it remains relevant and effective. Barry Glassman: Understanding the impact of inflation on retirement savings is crucial. Kamila Elliott: Create a long-term financial plan that includes a clear vision for your retirement goals. Barry Glassman: The role of insurance in protecting retirement savings cannot be ignored. Kamila Elliott: Develop a personal budget that takes into account your retirement goals and expenses. Barry Glassman: The benefits of tax-advantaged accounts, such as IRAs and 401(k)s, should be explored. Kamila Elliott: Prioritize retirement savings over other financial goals, such as buying a house or paying off debt. Barry Glassman: Consider the impact of fees on retirement savings and minimize them whenever possible. Kamila Elliott: The importance of seeking professional advice from a financial advisor cannot be overstated. Barry Glassman: Understanding the concept of compound interest and its role in retirement savings is essential. Kamila Elliott: Create a retirement savings timeline to help guide your financial planning. Barry Glassman: The significance of retirement savings as a percentage of income is critical.

Why Estate Planning is Crucial for Young Adults

Estate planning is often associated with older adults, but it’s never too early to start thinking about one’s own estate plan. In fact, young adults can benefit from estate planning just as much as their older counterparts.

Review your policy documents and ask questions if you need clarification.

Reviewing Your Insurance Coverages: A Crucial Step in Financial Planning

As the cost of living continues to rise, it’s essential to review your insurance coverages to ensure you’re adequately protected. This is particularly true for auto and home insurance, which have seen significant increases in recent years. However, it’s not just these two types of insurance that require attention.

Review Your Financial Foundation to Maximize Your Savings and Investments.

Review Your Tax Strategies

As the new year begins, it’s essential to review your tax strategies to ensure you’re taking advantage of available deductions and credits. This includes:

Reviewing your W-2 and 1099 forms to ensure accuracy

Claiming deductions for charitable donations and medical expenses

Considering tax-loss harvesting to minimize capital gains

Optimizing your retirement contributions

Assess Your Personal Interest Rate Environment

The current interest rate environment can significantly impact your financial decisions. Consider the following factors:

Short-term interest rates: How do they affect your savings and investments? Long-term interest rates: What impact do they have on your retirement accounts and other long-term investments? Inflation: How do interest rates influence inflation and your purchasing power? ## Create a Plan to Get Back on Track*

Create a Plan to Get Back on Track

If you’ve overspent during the holidays, now is the time to create a plan to get back on track.

The Benefits of Company Retirement Plans

Why You Should Consider Them

Company retirement plans offer numerous benefits to employees, making them an attractive option for those looking to save for their future. Some of the key advantages include:

Tax Benefits: Contributions to company retirement plans are often tax-deductible, reducing an employee’s taxable income. Increased Savings: Automatic contributions from a paycheck can lead to higher savings rates, as employees are less likely to cut back on contributions during economic downturns. Employer Matching: Many companies offer matching contributions, where they contribute a certain percentage of the employee’s contributions, essentially doubling the employee’s savings. * Portability: Company retirement plans are often portable, allowing employees to take their savings with them if they change jobs or retire. ### How to Get Started**

How to Get Started

Setting up a company retirement plan is relatively straightforward.

Identifying Spending Weaknesses

The first step in creating a budget is to identify the spending weaknesses. This involves analyzing your income and expenses to determine where you can cut back and allocate funds more efficiently. To do this, you’ll need to gather financial data, such as:

Income statements

Bank statements

Credit card statements

Utility bills

By reviewing these documents, you’ll be able to identify areas where you’re overspending and make adjustments accordingly.

Tracking Spending

Once you’ve identified your spending weaknesses, it’s essential to track your spending each month. This can be done using a spreadsheet or a budgeting app. By tracking your spending, you’ll be able to:

Monitor your progress towards your spending goal

Identify areas where you can cut back

Make adjustments to your budget as needed

Some popular budgeting apps include:

Mint

Personal Capital

YNAB (You Need a Budget)

Setting a Spending Goal

With your spending weaknesses identified and tracked, it’s time to set a spending goal. This should be a specific, measurable, and achievable target.

The key is to know how to navigate the turbulent times and make informed investment decisions.

Understanding the Market’s Cyclical Nature

The stock market has always been a cyclical beast, with periods of growth and decline. This cyclical nature is a fundamental aspect of the market’s behavior, and understanding it is crucial for making informed investment decisions. The market’s cycles can be broadly categorized into three phases: expansion, contraction, and stagnation.

Expansion Phase

During the expansion phase, the market is characterized by rising stock prices, increasing investor confidence, and a surge in economic growth. This phase is often marked by low interest rates, high consumer spending, and a strong labor market. Investors tend to be optimistic during this phase, and the market is driven by a sense of euphoria. Key indicators of the expansion phase include: + Rising stock prices + Increasing investor confidence + Strong economic growth + Low interest rates + High consumer spending + Strong labor market

Contraction Phase

The contraction phase is the opposite of the expansion phase. During this phase, the market is characterized by falling stock prices, decreasing investor confidence, and a slowdown in economic growth. Investors tend to be pessimistic during this phase, and the market is driven by a sense of fear and uncertainty. Key indicators of the contraction phase include: + Falling stock prices + Decreasing investor confidence + Slowdown in economic growth + High interest rates + Low consumer spending + Weak labor market

Stagnation Phase

The stagnation phase is a period of relative calm in the market, where economic growth is slow and steady, and investor confidence is stable.