2025 Financial Goals

2025 just feels like a year that should have the Olympics. I know it isn’t, but it feels like an even year. 20 and 25 are both divisible by 5. It is fun to say. 2026 doesn’t roll off the tongue. I am not a speech pathologist, but I am sure there is some science behind this.

Nobody likes reviewing finances with their spouse. However, it is important to check your financial health every year to determine if you are on track to reach your retirement goals. Here are some benchmark goals you could use when setting up a plan for 2025. 

1. Receive 100% of any available employer matching 401k/TSP funds. 

If your employer offers 401k/TSP matching, your first goal should be to invest the amount required to receive the full matching. Anything less is throwing away your hard earned compensation. 

2. Contribute $7,000 to a personal IRA (Traditional or Roth).

It’s not too late to keep contributing 2024 funds into a Roth or Traditional IRA! You have until April 15th to contribute under 2024 limits. Traditional and Roth contributions limits for 2024 and 2025 are up to $7,000 depending on your income. That is $583.33 per month. That is not a small amount, especially if you are giving 5-10% of your income to a 401k plan. Review your budget and expenses to see if this is possible. 

3. Set up a giving plan.

This is a personal goal that I am sharing. Jules and I donate to charity sporadically. We usually donate around $2,000 per year over Thanksgiving to various charities. This is far less than we can and should be donating. This year, we are going to set up a plan to donate a larger percentage every month. 

4. Begin saving for a large purchase.

If you can foresee a large purchase (home or car) in the next five years, you want to start saving cash in a high yield savings account or money market fund. All the investing we encourage you to do is great in 20+ years. If you have a need in the next five years, you don’t want to risk selling stocks at a loss for a down payment. A financial plan guided by your goals will help you determine the right amount to save versus invest. 

No matter what your goals for 2025 are, don’t lose sight of your purpose. Why are you investing? Why are you saving? Money is a means to an end, not the end.

Build upon great habits you formed in 2024! You can’t control how the market behaves, but you can control how you invest, save, and donate. 

Debrief on Deck

Next week we look at some social media finance advice. One tweet in particular got my blood boiling a few weeks ago.

As always, please reach out to us with any questions or comments you have. You can reply directly to this email or find us on Instagram.

Until then, stay the course.

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