Happy New Year! As you know, this is the time of year for making resolutions. Some people want to lose weight, quit smoking, or learn a second language. Others want to volunteer or read more. These are all great goals, but when you sit down to plan out your resolutions, spare a thought for your finances. There are several great financial resolutions most people could stand to focus on that could have a wonderful impact on your year.
Of course, it’s not uncommon to see someone resolve to spend less money, save more, or get out of debt. Those are all good, but let’s talk about a few resolutions you may not have thought of. Some of these may not apply to you, but all of them are a valuable way to make your finances stronger and healthier in 2026.
1. Truly Get to Know Your 401(k)
If you haven’t yet retired, and have access to an employee retirement plan, like a 401(k), it’s important to truly know whether your investments in there are set up the way you want it. Here are some questions to ask:
- Look again at the menu of investment options. Have you made your selections purposefully, or did you just accept whatever the plan provider chose for you?
- Many 401(k) plans allow you to invest at different levels of risk. Are you investing aggressively, moderately, or conservatively? Do you understand the difference? Do you know which is right for you?
- Many 401(k)s are invested in one or more investment funds. Each of these funds contains a prospectus, which is a document that describes how the fund works, including its objectives, strategy, past performance, and expenses. Have you read your prospectus? Do you understand how the funds in your 401(k) are supposed to work? Do their objectives match your own?
- What will you do with your 401(k) once you’re retired? You have three basic options: leave the money where it is, withdraw it, or roll it over to a qualified account. Do you know which option is best for you?
In short, make sure your 401(k) is customized for you. No one should ever have to be put in the same box as everyone else.
2. Review Your Insurance Needs
No one likes to talk about, think about, or pay for insurance. Yet insurance is a vital part of your finances. Let’s face it—no one can predict what life has in store for us. Life is full of wonderful things, but not everything in life is wonderful. Sickness, accidents, even age can all drain our finances dry. What’s worse, they can affect our loved ones, too, should they ever be forced to provide for us. So, in 2026, bite the bullet and really think about insurance. Do you have enough life insurance to provide for your dependents if something happens to you? Can you still afford to pay your bills if an accident forces you to stop working? These aren’t always pleasant questions … but with just a little work, you can make the answers much better.
3. Update Your Estate Plan
Take a look around you. Look at your home, your car, and your family heirlooms. These might seem like simple possessions, but they’re more than that. They’re assets. They’re part of your estate. That makes them very valuable. So, to ensure your assets go to who you want, you need to ensure your estate plan stays up-to-date. It’s easy to create your will, set up a trust, and take care of your power of attorney and then think the work is done, but life changes constantly. Your estate plan needs to be regularly refreshed to reflect that. So, if it’s been a while since you’ve looked at your estate plan, if changes have occurred in your family, or if you suddenly find yourself the proud owner of an impressive stamp collection, let’s update your plan accordingly.
4. Stop Just Thinking About That One Goal, and Start Planning for That One Goal
You know the one I’m talking about. That one goal that’s been in the back of your mind for ages. A goal you’ve daydreamed about, maybe even talked wistfully about, but never really thought it was possible. That one.
Maybe it’s going back to school to get your doctorate. Maybe it’s taking six months off to drive a jeep down the Pan-American Highway. Maybe it’s starting a business. Maybe it’s something nobody else could even think of because it’s so specific to you.
Whatever it is, it’s time to dust it off and bring it down from the attic of your mind. Come in and tell me about it. Let’s figure it out — and make 2026 the year you start planning for that goal instead of merely dreaming about it.
The best thing about resolutions like these is the peace of mind that comes from achieving them. And with that peace of mind comes a gift: the gift of time. Time you don’t have to spend worrying…but living instead.
Whatever your resolutions are, I wish you health and happiness throughout the year.
Good luck with your resolutions!
This material was provided for Joe Garrett’s use.
