A Fresh Start: Setting Your Finances on Course for 2026

Hi, this is Josephti (jo-SEF-tee), a Playa Vista financial planning and investment management Expert. Please email me your financial planning questions: info@thewealthgardenfs.com

As 2026 begins, it’s the perfect time to pause, reflect, and realign your financial goals. The start of a new year isn’t just symbolic, it’s an opportunity to assess where you stand and make thoughtful adjustments that set the tone for the year ahead.

1. Review Your Financial Health

Begin by calculating your net worth: your assets minus your liabilities. This number offers a snapshot of your overall financial health. A positive net worth generally signals progress, while a negative figure may highlight areas for improvement. Tracking it annually helps you measure growth and identify trends.

Next, examine your cash flow. Review 2025 bank and credit card statements to identify spending patterns and potential red flags such as rising debt or inconsistent savings. If you’re living paycheck to paycheck, even with a solid income, consider tightening discretionary spending or automating savings to stay on track.

2. Plan and Prioritize for 2026

Estimate your income, fixed expenses (such as housing or insurance), variable expenses, and savings goals for 2026. Your income should comfortably exceed both spending and savings targets. Alongside your emergency fund, consider keeping a small “buffer fund” for unplanned expenses during the year.

If you expect major changes like a move, career shift, retirement, or large purchase, update your financial plan early. Business owners should also factor in any tax law updates or state-specific changes that could impact cash flow or deductions.

3. Revisit Investments and Retirement Accounts

The new year is an ideal time to review your investment portfolio. Check your risk tolerance and confirm your asset mix still aligns with your goals and time horizon. If markets shifted in 2025, rebalancing may be appropriate. When trading, be mindful of tax consequences, especially if you made short-term trades last year for tax-loss harvesting or to avoid capital gain distributions.

Confirm that you’re saving adequately toward long-term goals. If you’ve fully funded one priority, redirect contributions toward another such as education savings or future travel. If eligible, make IRA contributions early in the year, and consider spousal IRA options when applicable. For those age 70½ or older, Qualified Charitable Distributions (QCDs) can satisfy required minimum distributions while supporting a cause you care about.

4. Review Taxes, Insurance, and Estate Plans

Gather last year’s tax documents now to simplify spring filing. If you made taxable gifts or need to file Form 709, organize that paperwork early. Some investors may benefit from a Roth conversion or a strategic realization of gains or losses this year.

Take a moment to review your insurance coverage such as health, life, disability, property, and long-term care. Major life changes or home upgrades may mean it’s time to adjust coverage or add riders.

Lastly, revisit your estate plan. Ensure wills, trusts, and beneficiary designations are up to date and that asset titling matches your intentions. If you serve as a trustee or executor, review your responsibilities to confirm you’re meeting fiduciary standards.

5. Check In with Your Advisor

Financial planning isn’t “set it and forget it.” Markets, tax rules, and personal priorities change over time, so regular reviews are essential. A conversation with your financial advisor can help ensure your portfolio, savings strategy, and goals remain aligned as life evolves.

The Bottom Line:

The new year is a great time to get organized financially and make sure your money is working for you. Even a simple check-in can give you clarity about where you stand and what steps will best support your goals in 2026 and beyond.

If you’re considering getting professional guidance for the first time, I’m here to help. Feel free to reach out with any questions or to explore whether working together would be a good fit. A short conversation can provide a lot of direction for the year ahead.

Josephti Cruz, CDFA® offers investment advisory services through the WealthGarden f.s., an SEC-registered investment advisor. She is not a tax advisor. This article is for informational purposes only and is not intended as a recommendation or advice which can only be provided after a careful review of your individual situation. Investing involves risk including the risk of loss. Past performance is not indicative of future results. Diversification does not ensure a profit or guarantee against a loss.