Some Personal Financial Planning Tips For Q1 2025

River Wealth Advisors believes financial planning is an ongoing, lifelong process, not a one-time event. While we are here to help you create and maintain your financial plan, there are actions you can take on your own to help keep you on track. We encourage you to speak with your advisor at least once a year to make sure the mix of assets in your portfolio still matches your time horizon and risk tolerance.

Some actions you can take in the early part of 2025 that will help you confidently track against your plan include:

January – March 2025

  • Manage your debt. Start by paying off all your high-cost, non-deductible credit cards, and then establish an emergency fund equal to three to six months of expenses, if you haven't already. 

  • Create (or update) your cash flow statement (prior year income minus expenses) and statement of personal net worth.

  • If you are still working, double-check if and how much you can contribute to your employer retirement plan. If possible, try to contribute enough to take full advantage of any available employer match. Also, if you're at least 50 years old (or will turn 50 this year), consider making additional catch-up contributions, if allowed, in your 401(k), 403(b), or 457(b) account (up to $7,500 for ages 50 to 59 and 64 and older; $11,250 for ages 60 to 63 in 2025). 

  • If your employer has granted you stock options, restricted stock units (RSUs), or restricted stock awards that are vesting, you'll need to decide how to handle them. Tax implications differ slightly for each one, so make sure you understand the impact before exercising options or selling shares.

  • Check your insurance policies (property and casualty, liability, health, disability, life) to ensure you have the coverage you need and aren’t paying for what you don’t need.

  • If you receive an annual bonus from your employer, use it thoughtfully to increase its potential benefit.

  • Check your credit report. You're entitled to a free copy of your credit report every 12 months from each of the three nationwide credit reporting agencies.

Look for more tips in the next Currents newsletter!

Rebecca Stevenson