A Smarter Start: Financial Planning Priorities for the New Year

The New Year has a way of inviting reflection. Some people set fitness goals. Others swear off sugar (temporarily). But the turn of the calendar is also an ideal moment to step back and ask this meaningful question:

Is our financial plan still doing what we need it to do?

Wealth is dynamic. Tax laws change. Markets shift. Families grow, age, and evolve. The most effective financial plans aren’t built once and put on a shelf; they’re revisited, refined, and recalibrated over time. As we enter the New Year, here are several planning priorities worth your attention, each designed to help bring greater clarity, efficiency, and confidence to your financial life.

1. Re-Anchor Your Plan to What Matters Most

Before diving into tactics, start with purpose.

Wealth planning is rarely about accumulating more. It’s about aligning resources with priorities: lifestyle, family, philanthropy, legacy, and peace of mind. Over time, those priorities can shift. A business exit changes your risk tolerance. Adult children alter estate considerations. Retirement reframes how you think about time and spending.

This is a good moment to revisit questions such as:

• What does “financial success” look like for us now?
• How much flexibility do we want and where?
• What tradeoffs are we willing (or no longer willing) to make?

Clear answers here act as a filter for every other decision. Without them, even the most technically sound strategies can miss the mark.

2. Stress-Test Your Cash Flow, Not Just Your Portfolio

Many investors spend far more time reviewing investment performance than examining cash flow. Complex income streams (bonuses, equity compensation, distributions, business income) can create blind spots. So can rising lifestyle costs, charitable commitments, or increased family support.

A New Year cash-flow review should answer three things:

1. What’s coming in, from where, and how reliably?
2. What’s going out, and how discretionary is it?
3. How resilient is this structure if markets, income, or tax rules change?

The goal is knowing what you can control and what you can’t. When cash flow is clearly understood, investment and tax decisions become easier and far more strategic.

3. Look for “Quiet” Tax Opportunities

Tax planning isn’t just about April or the end of the year. Some of the most impactful strategies happen well before returns are filed.

Depending on your situation, the New Year may be a good time to:

• Review asset location across taxable, tax-deferred, and tax-free accounts
• Evaluate Roth conversion opportunities in lower-income years
• Reassess charitable giving strategies, including donor-advised funds or gifting appreciated assets
• Coordinate investment decisions with tax-loss harvesting and gain-management strategies

The value comes from coordination. Make sure investment, tax, and planning decisions are working together rather than independently. When they are, the results can compound over time.

4. Revisit Risk, Because Risk Changes, Even If You Don’t

Risk tolerance isn’t static. It changes with age, wealth level, family dynamics, and life events. What felt like “appropriate volatility” ten years ago may feel very different today, even if markets look familiar.

This doesn’t automatically mean becoming more conservative. It means being intentional.

Ask:

• How dependent are we on our portfolio for lifestyle?
• How would a significant market drawdown actually affect us financially and emotionally?
• Are we getting the most reward for the amount of risk we’re taking?

A thoughtful risk review can help ensure your portfolio is aligned not just with market expectations, but with your real-world life.

5. Make Estate Planning a Living Conversation

Estate plans have a bad habit of becoming outdated.

Trusts, wills, and beneficiary designations should evolve alongside family relationships, asset values, tax laws, and personal intent. The New Year is a natural time to confirm that documents still reflect your wishes and that the people involved understand their roles.

Beyond documents, consider the human side:

• Are heirs prepared, financially and emotionally?
• Is there clarity around decision-making authority?
• Does your plan balance fairness with intent?

Good estate planning isn’t just about transferring wealth efficiently. It’s about reducing friction, confusion, and stress for the people you care about most.

6. Plan for Longevity Intentionally

Longevity is a gift. It’s also a planning variable.

Living longer can mean extended retirements, evolving healthcare needs, and changing spending patterns. It may also open the door to new goals: philanthropy, mentoring, second careers, or deeper family involvement.

A strong New Year planning conversation should consider:

• How spending may change over time, not just in the early years of retirement
• The role of healthcare, insurance, and long-term care planning
• How flexibility is built into the plan as life unfolds

The objective is to build a structure that adapts gracefully.

7. Simplify Where You Can

Complexity has a way of accumulating. Accounts multiply. Old strategies linger. Reporting becomes harder to interpret.

Sometimes the most valuable planning move is simplification:

• Consolidating accounts for clearer oversight
• Streamlining investment strategies
• Aligning advisors and professionals around a shared plan

Simplicity translates into fewer moving parts, better visibility, and more confidence in decision-making.

A Final Thought

The New Year isn’t about dramatic financial overhauls; it’s about thoughtful course correction.

At Allworth Financial, we believe great planning is proactive, personal, and integrated. It’s designed to support not just wealth, but the life it enables. Taking the time now to revisit priorities, test assumptions, and refine strategies can make the year ahead feel more intentional and less reactive.

And that, in the end, is what good planning is all about.

If you’d like help turning these ideas into a clear, actionable plan for your specific situation, your Allworth team is here and ready to help you start the year with clarity and confidence.

This information is meant for educational purposes and not as direct tax or legal advice. Rules and regulations can shift anytime, so it’s always best to consult a qualified tax advisor, CPA, or attorney for guidance tailored to your specific situation.