Financial Health Check: 10 Things to Do With Your Advisor For 2025

Jeanne Tackett | Jan 22, 2025

1. Review Your Financial Goals

Your financial goals are the foundation of your wealth management strategy. Life circumstances can change, and so should your financial plan.

Questions to ask your advisor:

Are my goals for retirement, education, or major purchases still realistic?
How have my financial needs evolved over the past year?
What new opportunities or adjustments should I consider for 2025?

Outcome: A refreshed roadmap that reflects your current aspirations.

2. Assess Your Budget and Spending Habits

Analyze your spending patterns from 2024 to identify opportunities to save or reallocate funds more effectively.

Action items:

Review monthly cash flow with your advisor.
Identify discretionary spending that can be trimmed.
Adjust your budget for anticipated changes in income or expenses in 2025.

Outcome: A clear understanding of how to better allocate your resources.

3. Evaluate Your Investment Portfolio

The end of the year is an excellent time for a thorough portfolio review. Market conditions, economic trends, and your personal risk tolerance may all warrant changes.

Key areas to analyze:

Are your investments aligned with your risk profile and long-term goals?
Should you rebalance your portfolio to maintain diversification?
Are there opportunities for tax-loss harvesting?

Potential Outcome: An optimized portfolio with the potential to grow in 2025.

4. Plan for Tax Efficiency

Taxes can significantly impact your financial health. Your advisor can help you implement strategies that seek to minimize your tax burden.

Tax-saving strategies:

Maximize contributions to tax-advantaged accounts like 401(k)s and IRAs.
Consider converting traditional IRAs to Roth IRAs if appropriate.
Discuss gifting strategies or charitable donations to reduce taxable income.

Outcome: A tax-efficient plan tailored to your circumstances.

5. Check Your Emergency Fund

Unexpected expenses can derail even the best financial plans. Ensure your emergency fund is adequately funded to cover 3-6 months of living expenses.

Steps with your advisor:

Evaluate the current state of your emergency savings.
Determine if additional contributions are needed.
Explore high-yield savings accounts for better returns on idle funds.

Outcome: Confidence knowing you’re prepared for the unexpected.

6. Review Retirement Contributions

Retirement planning is a long-term endeavor, but small adjustments today can lead to significant results in the future.

What to review:

Are you on track to meet your retirement savings goals?
Have you contributed the maximum allowed to your retirement accounts in 2024?
Should you adjust your 2025 contribution amounts based on changes in income or expenses?

Potential Outcome: A solid plan to grow your nest egg efficiently.

7. Examine Insurance Coverage

Insurance is a critical component of financial planning. Ensure you have adequate coverage to protect your family and assets.

Types of coverage to review:

Life insurance: Is your policy sufficient for your family’s needs?
Health insurance: Do you need to review your Estate documents with your attorney?
Property and liability insurance: Are you adequately protected against risks?

Outcome: Comprehensive insurance coverage that mitigates potential risks.

8. Plan for Major Expenses

Big-ticket items like buying a home, paying for college, or planning a wedding require careful financial preparation.

Discuss with your advisor:

Are your savings on track to meet these expenses?
Can you explore financing options that minimize long-term costs?
What tax implications should you consider?

Outcome: A clear strategy to handle major expenses without financial strain.

9. Update Your Estate Plan

Estate planning isn’t just for the wealthy—it’s essential for anyone who wants to ensure their assets are distributed according to their wishes.

Items to address:

Is your will up to date?
Have you updated beneficiaries on all accounts?
Do you need to establish or modify a trust?

Outcome: An estate plan that reflects your current wishes and family circumstances.

10. Set New Year Financial Goals

Use the insights gained from your financial health check to set actionable, realistic goals for 2025.

SMART goals with your advisor:

Specific: Define precise targets, like saving $10,000 for a vacation.
Measurable: Track progress through monthly reviews.
Achievable: Set goals within reach, given your current resources.
Relevant: Align goals with your broader financial aspirations.
Time-bound: Establish deadlines to create a sense of urgency.

Outcome: A motivated start to the new year with clear, attainable objectives.

Why Work with Total Clarity Wealth Management?

At Total Clarity Wealth Management, we take a holistic approach to financial planning, ensuring every aspect of your financial life works in harmony.

Benefits of working with us:

Comprehensive reviews tailored to your unique situation.
Proactive strategies to navigate economic changes.
Ongoing support to adapt your plan as life evolves.

Start 2025 Strong with Total Clarity Wealth Management

A financial health check is more than a year-end task—it’s an investment in your future. By addressing these 10 areas with your advisor, you’ll gain clarity, confidence, and control over your finances. At Total Clarity Wealth Management, we’re here to help you make informed decisions and achieve lasting financial success.

Ready to take the next step? Contact us today to schedule your year-end financial health check.

FAQs

Q: How often should I do a financial health check?
A: Ideally, you should do a comprehensive review at least once a year. Major life changes may warrant additional check-ins.

Q: What documents should I bring to a financial health check?
A: Bring recent pay stubs, account statements, tax returns, insurance policies, and any other relevant financial documents.

Q: Can I handle a financial health check without an advisor?
A: While it’s possible, working with an advisor provides valuable expertise and ensures nothing important is overlooked.

Disclosures:

Securities offered through LPL Financial, Member FINRA / SIPC. Investment advice offered through Total Clarity Wealth Management, Inc., a registered investment advisor and separate entity from LPL Financial.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and rebalancing do not protect against market risk. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs.

Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply. Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.