As we step into 2026, the new year presents a genuine opportunity to recalibrate your financial life. The beginning of a new year isn't just about vague intentions to "save more" — it's about creating a comprehensive strategy that aligns with your goals and positions you to navigate whatever lies ahead.
Start with an Annual Financial Reset
In the daily grind of work and family obligations, it's easy to operate on financial autopilot. But as policies change, markets shift and your circumstances evolve, that autopilot can become costly.
Think of your annual financial review as preventive maintenance for your financial health. Start with a comprehensive assessment: pull your bank statements, credit card records and investment reports from the past year. Understanding where your money actually goes is the foundation of effective financial planning.
Know the 2026 Policy Changes
For 2026, 401(k) contribution limits have increased to $24,500 — up $1,000 from 2025. The catch-up contribution for those 50+ rises to $8,000. If you're between 60 and 63, you now qualify for a "super catch-up" contribution of $11,250.
These increased limits represent real opportunities to accelerate your retirement savings. If you've been contributing a fixed percentage, now is the time to recalculate and potentially increase that amount.
Set Intentional, Specific Goals
One of the most common financial mistakes is keeping goals frustratingly vague. "I want to save more money" isn't actionable. The difference between wishful thinking and actual achievement lies in specificity.
Consider the 50/30/20 framework: 50% of income covers needs, 30% funds wants, and 20% goes toward financial goals and emergency preparedness. Review the year ahead: What major expenses are coming?
Vacation? Education costs? Home improvements? By anticipating these now, you can build them into your budget rather than scrambling when they arrive.
Rebalance Your Portfolio
If you've invested over the past year, your portfolio has likely experienced significant growth. Your asset allocation may have drifted from your intended strategy — a balanced 50/50 portfolio might now tilt more aggressively toward equities.
Rebalancing isn't about predicting market tops — it's about maintaining your target risk level. Taking gains after a strong run-up keeps your portfolio aligned with your risk tolerance.
Prepare for the Unexpected
Recent flooding events served as a stark reminder that unexpected expenses can materialize without warning. Take time this month to review all your insurance coverage — homeowners, auto, life, disability and umbrella policies. The peace of mind from knowing exactly what's covered is invaluable.
Consider Portfolio-Secured Lending
If you maintain a portfolio of stocks, bonds, and mutual funds, you can establish a line of credit against those assets — often at favorable rates of 5-6%. Rather than selling investments (triggering capital gains taxes), you can borrow against your portfolio. This provides flexibility while keeping your long-term strategy intact.
Establish emergency credit facilities before you need them. A home equity line of credit or securities-backed line of credit provides liquidity when unexpected expenses arise, without forcing you to liquidate investments at inopportune times.
Explore Roth Conversion Opportunities
For those approaching retirement, required minimum distributions (RMDs) starting at age 73 can create unwelcome tax burdens. Strategic Roth conversions in the years before RMDs begin can make a significant difference. By converting portions of traditional retirement accounts to Roth during lower-income years, you pay taxes at today's rates while reducing future tax obligations.
Review Both Sides of Your Balance Sheet
Don't focus exclusively on assets — your liabilities deserve equal attention. As interest rates fluctuate, opportunities emerge to refinance and restructure debt in ways that improve cash flow. Refinancing at a better rate means more payment goes to principal, paying off debt faster with less total interest.
Your January Action Plan
This week: Schedule a financial review meeting, gather your 2025 financial documents and review insurance policies.
This month: Complete a cash flow analysis, set specific financial goals for 2026, update your budget, adjust retirement contributions to maximize 2026 limits and schedule a meeting with your financial advisor.
This quarter: Complete or update your comprehensive financial plan, establish emergency credit facilities, optimize portfolio allocation and explore tax-efficient strategies.
The Bottom Line
Financial success in 2026 isn't about secret investment strategies — it's about intentionality, awareness and consistent action. Beginning this work in January gives you twelve full months to implement your strategy and build momentum.
Most importantly, you don't have to navigate this alone. Working with experienced professionals — wealth advisors, private bankers and tax strategists — ensures you're not missing opportunities or making costly mistakes. Make 2026 the year you take control, create clarity and build confidence in your financial trajectory.
Ready to create your financial roadmap for 2026? Contact Johnson Financial Group to schedule a comprehensive financial planning session
