Sponsored Content From JPMorgan Chase
By Aaron Allen, The Seattle Medium
The holiday season is an ideal time to assess your personal finances and prepare for New Year’s resolutions in 2025. Regardless of the economy’s ebb and flow, election unpredictability, and market fluctuations, you and your family can take concrete steps to optimize your financial future.
“With everything going on—the elections, the markets—by taking these steps, you can better navigate the uncertainties of the economy and set yourself up for financial success in 2025,” says Paul Butler, Chase Community Manager. “I think it’s really important when you think about creating a wealth plan.”
Butler describes a wealth plan as “a strategic framework that outlines how well you manage, grow, and preserve your financial resources over time.” He explains that a wealth plan is a personalized roadmap considering your financial goals, values, risk tolerance, and life circumstances. “So really, creating that wealth plan helps take account of your financial goals, values, risk tolerance, and life circumstances, while considering the entirety of your wealth life,” he adds.
To set yourself up for success in 2025, Butler offers ten essential actions to assess your financial standing and take the right steps toward long-term stability:
1. Create a Wealth Plan
Butler emphasizes the importance of a comprehensive wealth plan to ensure your personal and financial goals are aligned with your available resources.
“Tools like J.P. Morgan’s proprietary planning tool, Wealth Plan, can help you clearly see your risk exposure and cash flows to achieve your goals,” he says. A well-constructed plan can help you manage, grow, and preserve your financial resources more effectively.
2. Hold the Right Amount of Cash
With expected interest rate cuts, it’s crucial to maintain the right amount of cash on hand, while also exploring yield opportunities. Butler advises considering investments that match your liquidity needs and time horizon.
“Ensure you have the right amount of cash on hand and consider yield opportunities that match your time horizon and liquidity needs,” he says.
3. Maximize Investment Opportunities
Volatility is likely to resurface during the upcoming election season, but Butler advises maintaining a steady approach.
“Stay invested for your long-term goals and evaluate opportunities to invest excess cash,” he explains. By staying focused on long-term objectives, you can better weather market fluctuations.
4. Complete Your Annual Financial ‘To-Do’ List
Completing an annual financial checklist is critical to staying on track.
“This includes funding retirement accounts, such as IRAs and 401(k)s, taking RMDs, and making annual exclusion gifts to take advantage of tax benefits,” says Butler. Addressing these tasks each year ensures you’re making the most of your financial opportunities.
5. Review Your Life Insurance Policies
Reviewing life insurance policies regularly ensures you have adequate coverage to protect your loved ones.
“Ensure your life insurance coverage is adequate to protect your loved ones. Update beneficiaries and consider whether additional coverage is needed,” advises Butler. A regular review of your policies will provide peace of mind and help protect against unexpected events.
6. Increase Your Portfolio’s Tax Efficiency
Implementing strategies to minimize taxes on investments can help you preserve more of your wealth. Butler recommends considering tax-loss harvesting and using tax-advantaged accounts.
“Implement strategies to minimize taxes on your investments, such as tax-loss harvesting and utilizing tax-advantaged accounts,” he says. These steps can reduce tax liabilities while maximizing returns.
7. Review Your Asset Ownership Designations
It’s important to make sure that your assets are titled correctly, which can also provide tax benefits.
“Ensure your assets are properly titled to reflect your current wishes and potentially provide tax benefits,” says Butler.
This process can prevent future complications and ensure your assets align with your estate planning.
8. Plan Your Charitable Giving
Developing a strategy for charitable giving can maximize both personal satisfaction and tax benefits.
“Plan your charitable giving strategy to align with your values and maximize tax benefits,” Butler suggests.
Consider options such as donor-advised funds or charitable trusts to manage your donations more effectively.
9. Host a Family Meeting
Financial literacy and transparency within families are key to ensuring everyone is on the same page.
“Discuss money and family values with your family members. Align on values, disclose age-appropriate information, and build financial literacy skills,” says Butler. Hosting a family meeting helps ensure financial goals and values are shared and understood across generations.
10. Be Cybersafe in a Changing World
In today’s digital world, protecting personal and financial information is more critical than ever. Butler advises enhancing cybersecurity measures to guard against emerging threats like scams and deepfakes.
“Enhance your cybersecurity measures to protect against scams and deepfakes. Verify contacts, use safe words, and be cautious with links and attachments,” he warns. Safeguarding your digital assets is just as important as managing your financial portfolio.
Professional Guidance for Financial Success
Chase provides professional tools and guidance to individuals, families, and communities to help safeguard their financial decisions and create wealth growth plans. Butler recommends consulting with a financial advisor for more personalized advice.
“By taking these steps, you can better navigate the uncertainties of the economy and markets, and set yourself up for financial success in 2025,” say Butler. “For more personalized advice, consider consulting with a financial advisor who can help tailor these actions to your specific situation.”
As 2025 approaches, the holiday season offers a chance to review your financial health and prepare for the future. With the right strategies, from creating a wealth plan to enhancing your cybersecurity, you can build a more secure financial future for yourself and your family.