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Annual Financial Planning Calendar and To-Do List

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Annual Financial Planning Calendar and To-Do List

This calendar outlines recommended monthly financial tasks and deadlines for individuals to optimize their financial management.

January

Review Portfolio Performance and Financial Goals

  • Assess portfolio balances in relation to financial goals, noting that 2025 market performance included strong gains in international stocks and non-US markets, and bond gains attributed to Federal Reserve interest rate cuts late in the year.
  • For individuals in the accumulation phase, review the previous year's savings and investment rate against targets, such as a minimum of 15% of salary. Track progress toward retirement savings benchmarks.
  • For retired individuals, evaluate the prior year's spending rate against safety benchmarks using available retirement income calculators.

Evaluate Investment vs. Debt Paydown Opportunities

  • Consider all financial opportunities, including investments and debt reduction, to identify areas promising the highest return on investment.
  • Prioritize repayment of high-interest debt, such as credit card debt, as its guaranteed return typically surpasses potential market investment returns.
  • Compare expected investment returns with interest rates on other debts, such as mortgages. This evaluation should consider individual factors including life stage, the need for certainty (debt paydown offers a guaranteed return), and any tax incentives for borrowing or investing.

Adjust Retirement Plan Contributions

  • Note the increased contribution limits for company retirement plans for 2026:
    • 401(k)s: $24,500 for individuals under 50, and $32,500 for those 50 and older.
    • Additional catch-up contributions for retirement savers aged 60-63 in 2026 set an all-in limit of $35,750. New rules for 2026 require catch-up contributions for higher-income workers to be made into Roth accounts.
  • IRA limits for 2026: $7,500 for individuals under 50, and $8,600 for those 50 and older.
  • Adjust contributions if current levels are below maximums. Consider automating investment contributions, such as to an IRA, via automatic withdrawals from checking or savings accounts to ensure consistency and spread investments throughout the year.

Important Date

  • Jan. 15: Deadline for paying estimated taxes for the fourth quarter of 2025 for self-employed individuals or retirees who do not have taxes withheld from IRA withdrawals.

February

Conduct an Investment Review

  • If a portfolio review was not completed at the end of 2025, assess the portfolio's exposure to major asset classes. Due to recent stock market performance, some investors may find their portfolios are overweight in stocks relative to their target allocations.

Prepare Tax Documentation

  • Begin gathering tax-related paperwork, including 1099s for income or gains from holdings.
  • For those considering itemizing deductions for the 2025 tax year, the standard deduction is $15,750 for individuals and $31,500 for married couples filing jointly. Additional standard deductions apply for single taxpayers over 65 or blind ($2,000) and married people filing joint returns ($1,600 per person). Taxpayers over 65 receive an additional $6,000 deduction ($6,000 for singles, $12,000 for married couples where both are over 65) regardless of itemizing, provided income thresholds are met.

Review 1099s and W-2s

  • Analyze information from W-2s regarding salary increases and corresponding savings rates, including 401(k) contributions.
  • Evaluate 1099s for income received from cash accounts; consider transferring funds to online savings accounts if higher yields are available.
  • Assess the implications of capital gains distributions from mutual funds. Consider holding tax-efficient index funds or exchange-traded funds in taxable accounts if applicable.

March

Contribute to an IRA for 2025

  • April 15 is the deadline for funding an IRA for the 2025 tax year. Contribution limits for 2025 were $7,000 for individuals younger than 50 and $8,000 for those older than 50.

Fund Your Health Savings Account for 2025

  • April 15 is also the deadline for making a Health Savings Account (HSA) contribution for the 2025 tax year.
    • For 2025, individuals with self-only coverage through a qualifying high-deductible healthcare plan could contribute $4,300 to an HSA. Those with family high-deductible coverage could contribute $8,550.
    • Individuals older than 55 could contribute an additional $1,000 to their HSAs.
  • For 2026, these thresholds are increasing to $4,400 for self-only coverage and $8,750 for family coverage, plus an additional $1,000 for those over age 55.
  • HSAs can serve as an ancillary retirement savings vehicle, offering pretax (or deductible) contributions, tax-free compounding, and tax-free qualified withdrawals.

April

Manage Financial Paperwork

  • Review and organize financial paperwork. Shred old statements, prospectuses, and utility bills, ensuring documentation for cost basis is retained or accessible from financial providers.
  • Store irreplaceable documents (e.g., birth certificates, wedding certificates) in a safe-deposit box or fireproof container.

Transition to Paperless Statements

  • Consider switching to electronic delivery for financial statements. This reduces the risk of financial fraud through mail and may eliminate fees for paper document delivery.
  • Before transitioning, ensure adequate computer security and reliable access to information via company websites.

Create a Master Financial Directory

  • Establish a document detailing financial accounts, including provider names, account numbers, URLs, and contact names. Encrypt electronic documents or secure physical documents, and inform a trusted individual of its existence.

Important Date

  • April 15: Deadline for filing 2025 tax returns or filing for an extension. Individuals must also make quarterly estimated tax payments by this date. It is also the deadline to make IRA or HSA contributions for the 2025 tax year.

May

Assess Emergency Fund

  • Maintain liquid reserves, separate from long-term retirement assets, to cover unexpected expenses. A common guideline is to hold three to six months' worth of living expenses in cash instruments. Individuals with high or volatile incomes, or who are primary earners, may require larger reserves.

Assess Liquid Assets if Retired

  • Retired individuals should maintain a larger cash reserve to mitigate income disruptions and navigate market volatility within long-term portfolios. A