Essential Financial Strategies to Prepare for 2025

December 21, 2024 - 18:39

As 2025 approaches, it’s crucial for investors to take proactive steps to ensure their financial success in the coming year. Jason Bottenfield, a partner and managing director at Steward Partners Global Advisory, shares four key strategies to help investors navigate this transition.

First, Bottenfield emphasizes the importance of reviewing your portfolio allocation. As the year comes to a close, it’s an ideal time to ensure that your investments are still aligned with your overall strategy and financial goals. This reflection can help you maintain a balanced approach.

Second, he advises investors holding bonds at a loss to consider selling them. This move could allow you to offset any capital gains you may have realized throughout the year, providing a tax-efficient way to manage your portfolio.

Bottenfield's third recommendation is to reassess your retirement accounts, such as 401(k)s and IRAs, to confirm that their allocations reflect your current risk tolerance.

Lastly, he suggests shifting focus from international markets to US equities, which may offer better growth potential as the new year unfolds. By implementing these strategies, investors can position themselves for a successful 2025.