Financial Planning Checklist for 2026: Start the Year Right

The start of a new year offers a valuable opportunity to review your financial health and set yourself up for success in the months ahead. Whether you are navigating major life changes, pursuing new goals, or fine-tuning your existing strategy, now is the ideal time to ensure your financial plan aligns with your priorities for 2026.

Review Your 2025 Progress and Set New Goals

Before diving into the year ahead, take time to assess where you stand. Compare your current financial position to where you were at the start of 2025. What strategies worked well? Which areas fell short of expectations? Celebrate your accomplishments while honestly evaluating where you need to adjust course.

As you establish goals for 2026, organize them by timeframe. Short-term goals are ones you aim to accomplish within the year, intermediate goals could take one to five years, and long-term goals extend beyond five years. This framework helps you prioritize and allocate resources appropriately.

Consider upcoming life events that could impact your plan. A move to a new home or state, marriage or divorce, the birth or adoption of a child, college education expenses, career changes, retirement, or health challenges can all significantly affect your financial strategy. If you or family members will reach a milestone age in 2026 (such as 50, 55, 59½, 62, 65, 70, or 73), review the relevant financial planning considerations associated with that age. These milestones often trigger important decisions about retirement accounts, Social Security, Medicare, and required minimum distributions.

Update Your Cash Flow and Savings Strategy

Life circumstances change, and your financial plan should adapt accordingly. Start by reviewing your household income and expenses. Will your income remain stable in 2026, or do you anticipate changes from a new job, promotion, or retirement? Does your spending plan still reflect your current priorities, or have your goals shifted? If you are tracking toward specific savings goals, verify that you are on pace to meet them. When you fully fund certain goals, redirect that surplus toward other priorities rather than letting it sit idle.

Your employer benefits package deserves a fresh look each year. Maximize contributions to your 401(k), 403(b), or other employer-sponsored retirement plans. If you have a high-deductible health plan, contribute the maximum amount to your Health Savings Account (HSA), which offers triple tax advantages. If you do not use an HSA, budget appropriately for Flexible Spending Accounts, keeping in mind the use-it-or-lose-it rules, though some plans allow small rollovers or grace periods of up to two and a half months. If you have qualifying childcare expenses, plan your Dependent Care FSA contributions strategically.

You have until April 15, 2026 to fund a traditional or Roth IRA for the 2025 tax year. If your spouse does not have earned income, explore spousal IRA contributions. Since eligibility rules can be complex – depending on your income, whether you participate in an employer plan, and other factors – consult with a financial advisor if you are unsure. For 2026 contributions, start early in the year to maximize the time your money can grow tax-deferred or tax-free.

If you are subject to required minimum distributions in 2026, whether from your own retirement accounts or inherited IRAs, develop a strategic withdrawal plan. You can take distributions in smaller increments throughout the year or defer until later in the year to extend tax-deferred growth as long as possible. If you are charitably inclined and age 70½ or older, consider a Qualified Charitable Distribution to satisfy your RMD tax-efficiently. Be aware of the ‘first dollars out’ rule when planning QCDs, and review your tax withholdings with your tax preparer to avoid surprises at year-end.

If you plan to support charitable causes or provide financial gifts to family members in 2026, discuss tax-efficient strategies with your financial advisor or tax preparer. This includes maximizing deductions for charitable donations, tracking your use of the annual gift tax exclusion for noncharitable gifts to family and friends, and exploring donor-advised funds or other strategic giving vehicles that can amplify your philanthropic impact.

Navigate Tax Changes from the One Big Beautiful Bill

Recent tax legislation may create new planning opportunities for 2026. The passage of comprehensive tax reform could impact your income tax situation, estate planning strategies, and savings approaches. Read our in-depth analysis of the One Big Beautiful Bill and its tax planning implications here to understand how these changes might affect your specific situation.

Beyond new legislation, consider whether Roth conversions make sense given current and projected tax rates. Converting traditional IRA funds to a Roth IRA can be particularly strategic in years when your income is lower than usual. Review unrealized gains and losses in taxable accounts and create a tax-loss harvesting plan to offset gains and reduce your tax liability. If you own mutual funds in taxable accounts that typically make large end of year distributions, consider whether selling out of those funds makes sense based on your cost basis.

Optimize Your Investment Portfolio

After a strong market performance last year, your portfolio may be out of alignment with your target allocation. Conduct a thorough review to determine whether market movements have caused your portfolio to drift from your intended risk profile. Assess whether your current allocation still matches your comfort level and timeline. Evaluate how your investments have performed relative to appropriate benchmarks, and determine if you need to rebalance by trimming overweighted positions and adding to underweighted ones.

If you executed tax-loss harvesting trades in 2025, revisit those positions to determine if rebalancing is needed. Review your asset location strategy across taxable and tax-advantaged accounts. Generally, you will want to hold tax-efficient investments like index funds, ETFs, treasuries, municipal bonds, and individual stocks held long-term in taxable accounts, while placing tax-inefficient investments like corporate bonds, REITs, and actively managed mutual funds in tax-deferred or tax-exempt accounts. Remember to consider tax consequences before making any investment changes, as trading in taxable accounts can trigger capital gains.

Review and Update Your Estate Plan

Estate planning is not a one-and-done task. As a general rule, you should review your plan every decade or whenever you experience a significant life event. Moving to a different state, getting married or divorced, having or adopting children, the death of a spouse or named beneficiary, or substantial changes in net worth all warrant a fresh look at your estate documents.

Ensure your wills and trusts are up to date with current laws and reflect your intentions. Verify that you have designated the right people to make financial and healthcare decisions if you are incapacitated through powers of attorney. Check that your retirement accounts, life insurance policies, and other assets have the correct beneficiaries listed, as these designations typically supersede what is written in your will. Confirm that the ownership structure of your assets aligns with your estate strategy through proper titling.

Assess Your Insurance Coverage

Your insurance needs evolve as your life circumstances change. Conduct an annual review to ensure your coverage keeps pace with your situation. Does your current life insurance adequately protect your family's financial future? Major life changes, such as having children, buying a home, or paying off a mortgage, may warrant adjusting your coverage up or down.

If you depend on your income, disability insurance protects against the risk of being unable to work due to illness or injury. As your income grows and your financial obligations increase, consider whether you need to increase your coverage. For those approaching their 50s or 60s, it may be time to explore long-term care insurance options. The earlier you purchase coverage, the more affordable premiums typically are, though you will want to balance cost against the likelihood you will need the coverage.

Have you made home improvements, purchased valuable items, or acquired new property? Review your homeowners or renters insurance to ensure adequate coverage. Consider adding riders for high-value items like jewelry, art, or collectibles that may exceed standard policy limits. If you anticipate changes to your health status or medical treatments in 2026, review your health insurance options during open enrollment periods to ensure you have appropriate coverage.

Strengthen Your Financial Foundation

A solid emergency fund provides essential financial security. If you depleted your reserves in 2025, create a plan to rebuild three to six months of living expenses. If your emergency fund is already adequate, confirm the amount still aligns with your current expense level, as your monthly costs may have changed over the past year.

If reducing debt is a priority, choose a strategic approach that fits your personality and situation. The avalanche method focuses on eliminating debts with the highest interest rates first while maintaining minimum payments on others, which saves the most money over time. The snowball method pays off the smallest balances first to build momentum and motivation, which can help you stick with the plan. Both approaches work when executed consistently. If you are planning to borrow money in 2026 for a home, car, or other major purchase, compare loan terms carefully to secure favorable rates and conditions.

If you have remaining FSA funds from 2025, spend them before your plan's grace period expires, which is typically two and a half months into the new year. Do not leave money on the table due to use-it-or-lose-it rules. Many plans cover a wide range of eligible expenses, from prescription glasses to certain over-the-counter medications.

Request your free annual credit report from each of the three major credit bureaus – Experian, TransUnion, and Equifax – through AnnualCreditReport.com. Review for accuracy of reported information, signs of identity theft or fraudulent accounts, and errors that could negatively impact your credit score. If you discover errors, dispute them promptly with the credit bureau. Consider freezing your credit if you are concerned about identity theft, which prevents new accounts from being opened in your name.

Tracking your net worth annually provides a clear picture of your financial progress. Calculate your net worth by subtracting your total debts from your total assets and compare it to previous years to measure progress. While the number may fluctuate due to market movements or life events, the long-term trend shows whether you are moving toward your goals and building wealth.

Additional Considerations for 2026

If you own a business, consider changes on the horizon, such as expansion plans or new locations, changes to business structure or ownership, new contracts or agreements, and employee benefit plan reviews. These decisions can significantly impact both your business and personal financial situation.

If you are planning a significant financial transaction (e.g., to buy or sell a business or real property) in 2026, factor these into your overall financial plan and tax strategy well in advance. Real estate transactions have major tax implications and timing considerations. With interest rates declining, consider refinancing your mortgage to see if it makes financial sense if you got your mortgage after interest rates started rising in 2022. Compare potential savings against closing costs and consider how long you plan to stay in your home before making a decision.

Review any contracts or agreements you have entered into or that may have expired. If you are a co-signer or guarantor on loans for children, other family members, or business partners, check in with the other parties to confirm status and payment history. These obligations affect your credit and financial liability. If you have moved to a new state or plan to do so, research state-specific tax laws, estate planning requirements, and other regulatory differences that could impact your financial strategy.

Take Action on Your 2026 Financial Plan

Starting the year with a comprehensive financial review sets you up for success. By proactively addressing these planning areas, you will make more informed decisions and stay on track toward your financial goals.

Financial planning is not a solo endeavor. Work with qualified professionals – including financial advisors, tax preparers, and estate planning attorneys – to ensure your strategies are sound and compliant with current laws.

Ready to optimize your financial plan for 2026? Schedule a complimentary, no-obligation consultation with us to discuss your specific situation and goals. To learn more about how Holzberg Wealth Management can help you achieve your financial goals, learn more about us here!

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About the Author

Holzberg Wealth Management is a family-owned and operated financial planning and investment management firm based in Marin County, CA. As your financial advisors, we serve you as a fiduciary and are fee-only, so we never receive commissions of any kind. We help individuals and families like you in the greater San Francisco Bay Area and nationwide with the financial decision-making process to organize, grow, and protect your assets.

** This writing is for informational purposes only. The author and Holzberg Wealth Management do not guarantee or otherwise promise any results that may be obtained from using this report. No reader should make any investment decision without first consulting their financial advisor and conducting their own research and due diligence. These commentaries, analyses, opinions, and recommendations represent the personal and subjective views of the author and do not constitute a recommendation, offer, or solicitation to make any securities transaction. The information provided in this report is obtained from sources that the author believes to be reliable. External links to third parties are being provided for informational purposes only. Holzberg Wealth Management is not affiliated with the third-party websites linked to, unless otherwise explicitly stated, and does not constitute an endorsement or approval by Holzberg Wealth Management of any of the third party’s products, services, or opinions.