NewYear

New Year, New Markets: How to Stay Financially Strong in 2025

by BlogWealth

As we approach the end of 2024 and start looking ahead to 2025, it’s time to reflect, plan, and prepare for the year ahead. Sure, we all make resolutions (and sometimes keep them), but one goal should be universal: ensuring our financial futures are secure, no matter what the new year brings. A new year means new opportunities—and potentially new market challenges.

Let’s be honest: markets can be unpredictable, like that one relative with overly long holiday dinner stories (LOL). While we can’t control every twist and turn, we can prepare. Here’s how to step into 2025 with confidence, protect your money, and keep your peace of mind intact.

 

  1. Take Stock of Your Current Financial Situation

Before setting goals or making big changes, take a moment to evaluate where you stand financially. Are you saving enough? Investing wisely? Tracking your spending? Now is the perfect time to create a clear picture of your income, expenses, debts, and savings.

Break it into manageable steps:

  • Review your income sources.
  • Track your monthly expenses.
  • Evaluate your debts and interest rates.
  • Assess your savings and emergency fund.

If you’re unsure where to start, consider working with a financial planner or retirement coach. Women in transition can find tools designed just for them—like the ones I offer on my platform—to create a personalized roadmap.

Check out my Retirement Readiness platform to take an inventory of what you have and what you’re missing. Check it out here.

 

  1. Reassess Your Retirement Strategy for 2025

Markets change, and your strategy should evolve with them. Take the time to review your portfolio, risk tolerance, and asset allocations to ensure they align with your goals.

Ask yourself:

  • Is my portfolio diversified enough to weather market volatility?
  • Am I taking advantage of tax strategies that could save money in 2025?
  • Are my income streams sustainable in case of market downturns?

Adjusting now can help you navigate the year’s inevitable ups and downs while staying on track for your retirement goals.

 

  1. Set Clear and Achievable Financial Goals

Instead of vague resolutions like “save more” or “spend less,” set specific, actionable goals for 2025. Examples include:

  • Increase your 401(k) contributions by 2%.
  • Pay off a specific credit card by June.
  • Open a Roth IRA or HSA to maximize tax benefits.

If planning for retirement is your focus, download my Her Retirement Roadmap to create a clear, actionable plan that empowers you to take control.

 

  1. Prioritize Your Mental Health

Financial planning isn’t just about numbers; it’s also about mindset. Stress over market volatility or financial uncertainties can lead to poor decision-making.

Combat financial stress by:

  • Practicing mindfulness or meditation.
  • Taking breaks from constant market monitoring.
  • Exercising to reduce anxiety.
  • Leaning on supportive communities or financial coaches.

Remember, a calm and clear mind helps you make better financial decisions.

 

  1. Prepare for the Unexpected

Life loves throwing surprises our way. Whether it’s a medical emergency, an unexpected job change, or market shifts, having a solid financial cushion is essential.

Start building or bolstering your emergency fund: aim for 3–6 months’ worth of living expenses. Also, make sure your insurance policies—health, life, and long-term care—are up to date to protect against unforeseen events.

 

  1. Think About Your Legacy

2025 could be the year you focus on your legacy. Ensure your estate plan, will, and beneficiary designations are current. Consider what you’d like to leave behind, whether it’s financial security for your loved ones, charitable donations, or a well-organized estate.

Check out: www.GetHerWillDone.com for a number of resources.

 

  1. Seek Support and Resources

You don’t have to tackle financial planning alone. Whether you work with a financial advisor, take one of my retirement courses, or join a community of like-minded women (that I’m launching on January 1), support can make all the difference.

I recommend checking out my Her Retirement Roadmap MasterCourse or exploring our membership program for tools, guidance, and encouragement.

 

Final Thoughts

As we say goodbye to 2024, let’s celebrate the wins, learn from the challenges, and get ready for a fresh start in 2025. With preparation, adaptability, and a focus on your goals, you’ll be ready to thrive—no matter what comes your way.

Cheers to a year of financial empowerment, peace of mind, and progress. The ball might drop, but your financial confidence doesn’t have to. Let’s make 2025 your best year yet! If you need some help getting your health, wealth and happiness on track, check out my HappiHer, HealthiHer, WealthiHer Journal & Planner at: www.HHWJournal.com.

If you need some guidance, reach out to lynnt@herretirement.com. She can help you Get Her Done!

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2025 is Around the Corner: 8 Smart Money Moves to Wrap Up the Year Right

by BlogTax PlanningWealth

As the year winds down, now is the perfect time to check off those financial to-dos. Here are 8 key money moves (plus a bonus tax hack to boost your credit card points) to consider making so you can head into the new year with less stress and set yourself up for financial success in 2025.

1. Use It or Lose It: Check Your FSA

If you have a Flexible Spending Account (FSA), be sure to spend any remaining funds before the end of the year to avoid losing them. FSAs typically come in three types: health care, limited-purpose (compatible with HSAs), and dependent care.

Some plans allow a small portion to roll over or offer a grace period into early 2025, but most require you to use the funds by December 31. Check with your employer to confirm your deadlines and eligible expenses, like medical co-pays, prescriptions, or child care.

2. Consider a Roth Conversion

If you’ve been debating converting a traditional IRA to a Roth IRA, now is the time to act. The deadline for a 2024 Roth conversion is December 31.

Why consider it now? If your retirement account balances are down, the tax bill on the conversion will also be lower, as it’s based on the value converted. You can transfer assets “in kind,” meaning no need to sell investments before converting, but you will owe taxes on the amount converted.

3. Maximize Contributions to Tax-Advantaged Accounts

Ensure you’re contributing as much as possible to accounts like 401(k)s, IRAs, and HSAs.

  • 401(k): For 2024, the contribution limit is $23,000, or $30,500 if you’re age 50 or older. The deadline for 401(k) contributions is December 31.
  • IRAs/HSAs: While contributions for 2024 can be made until the April 2025 tax filing deadline, HSA contributions made by December 31 through payroll deductions can avoid FICA taxes.

Pro tip: Use a year-end bonus to boost your retirement contributions or education savings in 529 plans, which may offer state tax benefits if funded by year-end.

4. Optimize Charitable Giving for Tax Savings

If you itemize deductions, consider making charitable donations by December 31 to reduce your 2024 tax bill.

  • Cash Donations: Deduct up to 60% of your adjusted gross income (AGI).
  • Appreciated Securities: Deduct up to 30% of your AGI and avoid paying capital gains taxes.

If you don’t normally itemize, try “bunching” donations. This strategy involves making several years’ worth of contributions at once to exceed the standard deduction in 2024. Donor-advised funds can help streamline this approach.

5. Don’t Forget RMDs if You’re 73 or Older

If you’re 73 or older, Required Minimum Distributions (RMDs) from traditional IRAs and certain retirement accounts are mandatory.

  • First RMD: Must be taken by April 1 the year after turning 73.
  • Subsequent RMDs: Must be taken by December 31 annually.

Avoid missing the deadline—there’s a 25% penalty for missed RMDs, though this can be reduced if corrections are made quickly.

6. Take Advantage of Tax-Loss Harvesting

Use tax-loss harvesting to sell investments at a loss to offset taxable capital gains.

  • Offset realized capital gains dollar-for-dollar.
  • Deduct up to $3,000 of investment losses against ordinary income ($1,500 if married filing separately).
  • Carry forward unused losses to future tax years.

Make sure you complete any loss-harvesting transactions by December 31 to apply them to your 2024 taxes.

7. Review Your Tax Withholding

If you’ve had significant changes in income, withholding adjustments may help avoid surprises come tax season. Use the IRS Tax Withholding Estimator to check if you need to fine-tune your withholding for 2025.

8. Plan for End-of-Year Expenses

Take stock of holiday expenses, travel, or any big-ticket items to avoid overspending. If you’re expecting a year-end bonus, create a plan for allocating it toward financial goals like debt repayment, savings, or investments.

Bonus Tax Hack to Get More Credit Card Points (from my friend Colin Stroud, Go Somewhere)

How I Earned 99,000 Chase Points from Paying My Taxes

This is what I call a next-level money move.

Here’s the situation: My wife needed a business credit card, and we also had a tax bill to pay. After some quick strategizing, we came up with a plan to turn this expense into a major points haul.

She applied for the Chase Ink Unlimited card, which has no annual fee and was offering a sign-up bonus of 90,000 points after spending $6,000 in the first 3 months. This card also earns 1.5% back on all purchases—including tax payments.

By using this card to pay $6,000 in taxes, we hit the spending requirement and earned:

  • 90,000 points for the sign-up bonus
  • 9,000 points from the 1.5% rewards on the $6,000 spent

That’s a total of 99,000 Chase points in one go.

Wait—You Can Pay Taxes with a Credit Card?

Yes, you can. The IRS allows credit card payments through third-party processors. The catch? There’s a small fee.

For this payment, we used a processor charging a 1.82% fee, which came out to $109 on a $6,000 tax bill.

Is It Worth It?

Absolutely. Here’s why:

  • For $109 in fees, we earned 99,000 points.
  • Those points can be redeemed for $4,000+ in travel when used strategically through Chase Ultimate Rewards (e.g., transferring to airline or hotel partners).

That’s a 36x return on the fee we paid.

Why You Should Consider This Hack?

If you have a tax bill (or any other large expense) and a great credit card offer, this is a fantastic way to maximize rewards. The key is ensuring:

  1. The processing fee is small compared to the value of the points.
  2. You can pay off the card balance in full to avoid interest charges.

So, why aren’t you doing this? It’s a simple and effective way to turn an unavoidable expense into major travel rewards!

Well Ladies that’s the 9 money moves you can make NOW. Remember, it’s Never Too Late to Plan

If you don’t check everything off your list this year, don’t stress—you can still take steps in 2025 to improve your finances (there’s several April 15, 2025 deadlines for 2024 like Roth IRA contributions). However, acting now can help you enter the new year feeling confident and prepared. But act quickly.

For personalized advice, consult a financial or tax advisor to see how these strategies (and others) could improve your financial outlook. I know a few who can hook you up. I can even hook you up with a complimentary financial or tax assessment. Email me: lynnt@herretirement.com or go to: https://herretirement.com/talk-to-a-retirementor