1. Use Your Tax Return as a Guide

Before you file it away, take a quick look at what actually happened last year:

• Where did your income really come from?
• How much did you pay in taxes?
• Did anything surprise you (a big refund or an unexpected bill)?

Ask yourself: Was this what I expected?

If not, that’s helpful. It usually means there’s something worth adjusting now—not next year.

2. Adjust Withholding or Estimated Payments

If you owed more than you expected or got a much bigger refund than you planned, it’s probably time to fine-tune things:

• Update your paycheck withholding
• Revisit estimated tax payments (especially if you’re retired or self-employed)

The goal here isn’t perfection. The goal is just to avoid big surprises and smooth out your cash flow.

3. Revisit Your Tax Strategy for This Year

Now that you’ve seen how last year played out, you can be more intentional this year.

A few things to think about:

• Does a Roth conversion make sense this year?
• Should you shift income between years if you have flexibility?
• Are there opportunities to realize gains or losses more strategically?

4. Update your Contributions

This is one of the easiest things to review and update during your “spring cleaning.” Be sure to increase your contributions to your 401k and/or IRA’s to max out for the year.

For 2026, contribution limits have increased to:

• 401(k): $24,500 (+ $8,000 catch-up if 50+, or up to $11,250 if ages 60–63)
• IRA (Traditional or Roth): $7,500 (or $8,600 if 50+)
• HSA: $4,400 individual / $8,750 family (+ $1,000 catch-up if 55+)

If you can:

• Increase your automatic contributions
• Revisit your IRA or HSA funding plan
• Make sure your savings still match your current income

Even small changes now can make a noticeable difference by the end of the year.

5. Clean Things Up and Simplify

This is the “spring cleaning” part. Take a little time to:

• Consolidate old retirement accounts
• Double-check your beneficiaries
• Organize important documents
• Cancel or unsubscribe from things you don’t use anymore

6. Revisit Your Investment Mix

The market has moved around a lot over the last year and your portfolio can drift more than you realize. After tax season is a great time to:

• Review your allocation
• Rebalance if needed
• Make sure your investments still line up with your timeline (especially if retirement is getting closer)

Filing your taxes isn’t really the finish line—it’s more like the starting point for making smarter decisions this year. A few small, intentional adjustments now can go a long way toward reducing taxes over time, improving cash flow and feeling more confident about what’s ahead. If you have questions about any of this, feel free to reach out! We’re always happy to help you get things organized and on track for the year ahead.

The post Spring Cleaning for Your Finances: What to Do After You’ve Filed Your Taxes appeared first on MainStreet Financial Planning.

1. Reflect on the Past Year – Celebrate the wins and learn from the challenges

Before you dive into setting new financial goals, take a moment to reflect on the year that’s passed. What worked well in 2024, and what could have gone better? Reflecting on past goals—whether you hit them or fell short—can help identify areas of strength to build on and weaknesses to address. Research shows that acknowledging even small accomplishments fosters a growth mindset, which boosts motivation and performance. Consider journaling about your key wins and challenges, then use these insights to set more realistic and achievable goals for 2025.

2. Set Clear, Measurable Goals

According to Harvard Business Review, breaking large goals into smaller, measurable milestones increases the likelihood of success. Instead of vague goals like “save more money,” be specific. For example, aim to save $5,000 for an emergency fund or reduce debt by $2,000. The more specific and measurable your goal, the easier it will be to track progress. Break down large goals into smaller, manageable milestones, and celebrate each achievement along the way.

3. Write Down Your New Goals

Don’t just think about your goals—write them down! A study from the Dominican University of California found that people who wrote down their goals were 33% more successful in achieving them than those who didn’t. When you write your goals, you commit to them. Keep them visible—on your desk, refrigerator, or bathroom mirror—to reinforce your dedication and remind you of your priorities every day.

4. Create a Realistic Budget

A budget is telling your money where to go instead of wondering where it went,” says leadership coach and author, John Maxwell. This is one of the most essential steps in building a successful financial strategy. Start by evaluating your income and monthly expenses, then allocate funds toward your savings, investments, and debt repayment goals.

But remember, flexibility is key. Life is unpredictable, so allow room for unexpected costs, while also being realistic about your spending habits. A well-crafted budget isn’t about restriction; it’s about making sure every dollar works toward your bigger financial goals.

5. Prioritize Your Financial Goals

It’s easy to feel overwhelmed by a long list of financial objectives, but research shows that prioritizing goals significantly increases the likelihood of success. Focusing your energy on fewer, high-impact goals allows you to make faster, more meaningful progress.

Start with the essentials, like building an emergency fund or paying down high-interest debt. Once these are under control, gradually shift your focus to long-term goals like saving for retirement or buying a home. By addressing the most urgent goals first, you’ll build the financial security necessary to tackle larger ambitions down the road.

6. Track Your Progress Regularly

Peter Drucker famously said, “You can’t manage what you don’t measure.” Tracking your progress is crucial to staying on track and adjusting your approach when needed. Whether you use a budgeting app like Monarch Money, a spreadsheet, or even a simple journal, monitoring your income, expenses, and savings will help you stay focused and motivated.

Studies have shown that tracking progress increases your chances of success. Regular check-ins allow you to celebrate small wins, stay motivated, and tweak your strategy if things aren’t going as planned. By checking in monthly or quarterly, you can course-correct and make sure you’re always moving toward your goals.

2025 is a year full of opportunities to take control of your finances and build a strong foundation for the future. By setting clear, measurable goals, sticking to a budget, and regularly tracking your progress, you can make this year your most financially successful yet. Stay committed, stay focused, and enjoy the journey toward financial freedom!

The post New Year, New Financial Goals: Five Tips for Setting Yourself Up for Success in 2025 appeared first on MainStreet Financial Planning.

1. Healthcare
Open enrollment is an excellent time to reassess your healthcare needs for the upcoming year. Here are a few items to review for your healthcare benefits:

Consider if you need to change the type of healthcare plan you will have for the upcoming year. If you have an upcoming surgery or a baby on the way, a lower-deductible health plan might be beneficial. Conversely, if you are generally healthy and don’t anticipate significant medical needs, a high-deductible health plan could be more cost-effective.

If you do choose the HDHP, you may also have the option to open a Health Savings Account (HSA) where you can contribute pretax dollars to an investment account that can grow and be withdrawn tax-free to be used for eligible healthcare expenses over the rest of your life.

Does your employer offer a Flexible Spending Account?  If so, you have the benefit of setting aside a specific amount from each paycheck, pretax, to go into an account to be used for various healthcare expenses for that year. The trick with an FSA is that these dollars don’t roll over every year so you may need to adjust how much you contribute each year based on what you expect to spend on healthcare-related expenses for the upcoming year.

2. Disability Insurance
Check whether you have disability insurance through your employer. Some employers automatically provide this benefit, covering the premium and offering about 60-65% of your income if you need it. If your employer offers you the option to purchase additional coverage, remember that paying the premium yourself means your disability income will be tax-free. If your employer pays the premium, the income will be taxed, which can affect your take-home amount. Understanding your coverage and tax implications is crucial to ensuring you have adequate protection. Use open enrollment as a time to confirm you have disability insurance, review how much coverage you have, and consider whether you might need additional coverage through a private policy if what you have through work would not be sufficient for your family.

3. Life Insurance
Review your life insurance options during open enrollment. Employers often provide a base amount of life insurance, typically one to two times your salary. You may also have the option to purchase additional coverage for yourself or your spouse. Group policies offered through employers are usually more cost-effective, making this an opportune time to secure adequate life insurance, especially after significant life changes like marriage, home purchase, or childbirth.

4. Legal Benefits
I’ve seen a lot more employers starting to offer legal services to their employees. This could be useful to you if you need estate planning done, which could be at a free or reduced cost through your benefits. There are also legal plans you can sign up for that allow you a set number of hours of legal counsel as well. Be sure to check your full benefits package to see if this is available to you!

I hope this helps you in reviewing your employer benefits during this open enrollment season and if you have questions about whether you have the right coverages for you, reach out to us at MainStreetplanning.com and we would be happy to review your employee benefits with you as you decide what benefits are right for you this year.

The post 4 Things to Review During Open Enrollment appeared first on MainStreet Financial Planning.

What is a Custodial Roth IRA?
A Custodial Roth IRA allows a parent to open and manage a Roth IRA for a minor. The account is owned by the child, but the parent or guardian manages it until the child reaches the age of majority, typically 18 or 21, depending on the state. This account type is particularly beneficial for children who have earned income but may not have the knowledge or ability to manage their retirement savings yet.

Earned Income Requirement:
To contribute to a Custodial Roth IRA, your child must have earned income. This can come from traditional W-2 income sources, such as an after-school or summer job, or from self-employment, like babysitting or freelance work. The income must be verifiable, as this is a key requirement for opening and contributing to the account. There is no age requirement for opening a custodial Roth IRA so long as the child has earned income.

TIP: While there is an earned income requirement there is also an effective strategy where the parent can “gift” the child the full or partial amount of the contribution. This approach allows the child to enjoy their earnings while still contributing to their Roth IRA. For instance, if your child earns $3,000 from a babysitting job, you as the parent could contribute $3,000 on their behalf since they had $3000 in earned income and still allow the child to keep the earnings for them to use/spend. You could also consider contributing half of the earned income they had for the year ($1500) and then the child contributing the other $1500 while still allowing them to keep some of their hard earned money to spend while still making the child have some “skin in the game” so to speak.

Contribution Limits:
The contribution limit for a Custodial Roth IRA is the lesser of your child’s earned income or $7,000 per year (as of 2024). For example, if your child earns $5,000 in a year, that is the maximum amount they can contribute for that tax year. If they earn $8,000, they would still be limited to the $7,000 cap.

Time Advantage:
Starting a Custodial Roth IRA for your child maximizes the time their investments have to grow through compound interest. While any individual can open a Roth IRA at age 18, opening one even earlier enhances the time value of money and helps establish a habit of regular contributions. This early start not only amplifies the growth potential of their savings but also ingrains the discipline of consistent investing.

Withdrawal Rules:
The same rules that apply to a regular Roth IRA apply here. Contributions can be withdrawn at any time without penalty. However, withdrawing earnings before age 59½ may incur taxes and a 10% penalty, with certain exceptions such as first-time home purchases or education expenses. Importantly, the 5-year clock for tax-free withdrawals starts when the account is opened. This means that starting early allows the clock to start ticking sooner, making it possible to access funds for major life events like buying a house or paying for education with fewer penalties.

Long-Term Growth Potential:
Consistent contributions to a Custodial Roth IRA can result in substantial long-term growth. For example, if your child contributes $6,000 annually starting at age 10, they could potentially see their account grow to over a million dollars by retirement, thanks to the power of compound interest. Starting early not only increases the account’s value but also teaches the child the importance of regular saving and investing.

By opening a Custodial Roth IRA, you provide your child with a powerful financial tool and teach them the value of long-term planning. This early exposure to saving and investing sets the stage for a secure and prosperous adulthood.

*Source T Rowe Price 

A Custodial Roth IRA can be opened at most brokerage firms online—Vanguard, Fidelity, Schwab, etc. If you have questions about how to open and invest in a Custodial Roth IRA for your child, reach out to us, and we’d be happy to help guide you in setting your child up for success.

The post What is a Custodial Roth IRA and Should I Open One for my Child? appeared first on MainStreet Financial Planning.

• Freeze your credit
• Use a password manager
• Review your credit report annually
• Use only secure websites and wi-fi
• Use your credit card when making online purchases

However, we always want to continue being vigilant in protecting ourselves online so here are 5 MORE ways to protect yourself online

Adjust the privacy settings on social media – Make it hard on the hackers to access not only passwords but also other personal information by setting your accounts to private or even limiting access to what certain friends can see. How many security questions could someone answer about you by looking at your social media? A lot of common information is available if someone was looking for it – your age/what year you were born, your mother’s maiden name, the town in which you were born, your high school mascot. I try to choose security questions that are either my opinion or something that no one would know the answer to such as “what was your favorite stuffed animal?”  so the only person that could possibly answer my security questions would be my younger sister

Use Two-Factor Authentication (2FA) –Two-Factor Authentication makes it more difficult for a hacker to gain access to your accounts by sending an additional verification method most commonly by sending a code via email or text. Most online stores and purchases require 2FA but you can also turn it on for logging into email or social media accounts which add a level of protection to your overall online security.

Update your software regularly – Although a simple tip, it is still incredibly important to make sure you are keeping up with all software updates for your computer and phone. These regular updates are going to have important security protections that are up to date with any new types of viruses or malware. I know it’s easy to hit the “Remind me later” button, don’t put it off for too long or else you are leaving yourself vulnerable to various types of security breaches

Use an Identity Theft Protection Monitor – Consider subscribing to an ongoing identity theft protection service such as LifeLock or IdentityGuard. It will monitor the availability of your private information (i.e SSN, phone number, Driver’s License number) on the internet as well as the dark web and can give you a heads up if someone is trying to use your identity by monitoring if any of your information is being used somewhere new/unusual.

Beware of phishers! With technology growing faster than ever – that also means the sophistication of hackers and people looking to steal your information is also becoming more difficult to spot. If you are suspicious of an email that is asking you to verify private information or an email that looks like it’s from a friend or co-worker that seems a little off, proceed with caution –

• Before you click on a link to verify personal information from what appears to be your bank or some other institution you can hover over the link to see if the full website address and confirm whether it is or isn’t legitimate. Also look for the “https” in the website address to confirm the website is secure
• Check the email address – oftentimes these phishing schemes are coming from emails that look like a legitimate email but if you look at the full email address is often reveals that it is from a bogus or weird email address. Think twice before clicking on a link or giving personal information over the phone from someone purporting to be a government agency or something similar.

These are just a few ways to further protect your identity and decrease the likelihood of you having to deal with any kind of identity theft issue, which I can say from personal experience, is difficult and frustrating to untangle. I’d love to hear any tips you personally use or recommend to further strengthen your online security and overall identity protection and I’ve also included a few articles and resources below for further reading on the subject.

Why I Pay for Identity Theft Insurance

Who are the 3 Major Credit Bureaus?

How to Keep Your Identity Safe Online

Do You Need Identity Protection Services?

The post Beyond the Basics: 5 Advanced Strategies to Secure Your Online Identity appeared first on MainStreet Financial Planning.

1. Plan Early

Planning early is essential for any wedding, but it’s especially important for a destination wedding. Notify your family and friends as soon as possible so they can arrange time off work, update passports, and book travel. Whether you’re getting married within the US at the beach or in the mountains or somewhere outside of the US, like Mexico or Italy, give yourself at least a year to fully plan your destination wedding.

2. Get Some Help

Using a specialist or company that focuses on destination weddings can save you time and stress. They act as a hybrid of a wedding planner and travel agent. My sister’s planning company helped secure the wedding date, coordinate a block of hotel rooms for guests at a group discount, and manage transportation from the airport to the hotel. They also handle any travel or room changes needed, making the process smoother.

3. Choose Off-Season Dates

Opt for an off-season date to save on costs. My sister and her fiancé are getting married at the end of October, which is off-season in Mexico. This choice resulted in lower costs for flights, accommodations, and the wedding venue itself. Off-season weddings can significantly cut expenses while still providing a beautiful setting.

4. Know the Rules

Be aware of any extra fees for bringing your own vendors. If you prefer a specific photographer or officiant over those offered by the resort, there may be additional charges for “outside vendors.” To simplify budgeting and reduce costs, many hotels offer all-inclusive packages that cover the ceremony, reception, food, and drinks.

5. Use Travel Rewards

Leverage travel rewards and cash-back incentives to save money. This can be especially beneficial for a destination wedding, potentially saving you thousands on travel expenses. Use points for flights and accommodations to reduce overall costs.

I have the unique insight of helping my sister plan her wedding, and I’ve seen both the successes and challenges of planning a destination wedding. I hope these tips help you save money if you or a friend or family member decides to plan a destination wedding.

Other resources:

Budgeting for wedding season

Tips to save money on travel

The post 5 Money Saving Tips for a Destination Wedding appeared first on MainStreet Financial Planning.

Travel credit cards – If you don’t have one already, travel credit cards are a great way to save hundreds of dollars on your next vacation. I personally love the Capital One Venture Card, which has double points to cover travel expenses– you get higher points/rewards on certain purchases. One of my goals this year is to fully pay for the trip to Mexico for my sister’s wedding by utilizing credit card points. Here is a helpful list of some of the best travel credit cards available right now. Above and beyond the usual travel points you receive by using the cards, many travel credit cards have great intro incentives that can save upwards of $750. You can also receive hundreds of dollars in rewards by referring friends or family to use the credit card I’ll have to report back afterwards and give an update of how much I was able to save by using credit card points.

Flight trackers – My sister is getting married this fall and she is doing a destination wedding in Mexico. She is using a travel agency to help coordinate planning booking for everyone that is invited and one of the tips the travel agency sent out was to set up Google Alerts for flights during our dates. The “sweet spot” for booking flights is 1-3 months for domestic trips and 2-8 months for international trips depending on where you are going and whether you are traveling during busier seasons for your destination.

Travel agents – My husband and I used a travel agent last year to plan our 10-year anniversary trip and it was incredibly helpful on so many levels. The agent was able to coordinate our rental cars, flights and hotels and was even able to change dates and flights on our behalf. Most travel agents have no service fee since they earn commissions from hotels, airlines, and other venues. TravelSense.org is part of the American Society of Travel Advisors and allows you to search by some useful parameters including specialty and geographic location. I highly recommend using one to plan your next trip!

Reservations – I know that seems like an incredibly basic “secret” but I didn’t realize how far in advance some restaurants or activities require a reservation. We went to Napa and Sonoma in 2015 and realized that we had waited too late to book certain restaurants and wineries that we wanted to visit so when we returned for our 10-year anniversary trip I made sure to schedule our meals and tours much further in advance. This is especially important if you are traveling during the “high” season for whatever destination you are visiting.

A few other articles and tips on traveling from the Mainstreet archives –

Five Costly Travel Mistakes

18 Travel Tips

Cheap Vacation Ideas

Smart Moves to Practice for Vacation and Trips

What are some of your favorite traveling tips and tricks? Happy traveling!!

The post 4 “Secrets” to help you save on travel this summer appeared first on MainStreet Financial Planning.

Review Tax Withholding: Check your paystubs to assess if adjustments to your W-4 are needed to avoid overpaying or underpaying taxes in 2024. If you had a big tax bill, consider increasing your withholdings and if you received a large refund that may mean you are withholding too much from each paycheck and essentially giving the government a free loan until next April.  The IRS website has this helpful Tax Withholding Estimator you can use as a reference if you are unsure how much to withhold.

Quarterly Payments: If you had a large tax bill last, consider making quarterly payments.to avoid penalties for underpayment

Maximize Deductions and Credits: There are numerous tax deductions and credits that you may be eligible for, from deductions for charitable gifts, to an electric vehicle tax credit. There are some income limits/phaseouts to be aware of but it is always helpful to review what may be available to you this year that you may not have been eligible for last year.

Explore Tax-Advantaged Accounts: One way to lower your tax burden is to take advantage of your employer’s retirement plan if they have one by contributing pre-tax dollars into your 401(k) or 403(b). If you weren’t able to max out those accounts last year, can you increase your contributions this year? You may also be eligible to make deductible Traditional IRA contributions depending on whether you have access to an employer retirement plan and your income level.

Healthcare Expenses: If your employer offers HSAs or FSAs, these can be a great way to help manage expenses related to healthcare but also be a good way to reduce your taxable income. FSA’s are usually a “use it or lose it” type of account where you have to use the full amount in that calendar year (with some grace period exception) whereas an HSA can be invested and continue to grow until you reach retirement age.

If you still haven’t filed your taxes for 2024, now is the time to get organized, and here are a few other resources to help you plan for taxes for 2024.

Other Resources

Should I do my own taxes?

What can you learn from your latest tax return?

What is Tax Loss Harvesting and when should I do it?

*This article was originally posted on March 14, 2024*

The post Make your 2025 Taxes Less Taxing by giving yourself a Tax Checkup! appeared first on MainStreet Financial Planning.

At MainStreet Financial Planning, every member of our dedicated team is proudly affiliated with the Garrett Planning Network (GPN). This affiliation goes beyond a mere association; it signifies a commitment to providing exceptional service and embracing a unique model of financial planning. Our approach aligns with the five defining characteristics upheld by the Garrett Planning Network that set us apart in the realm of financial planning.

Here is what makes us different:

1. Hourly, Fee-Only Service:

We operate on an hourly or, flat, fee-only basis, ensuring transparency and alignment of interests with our clients. Importantly, we do not accept sales commissions or any compensation beyond what is directly agreed upon with our clients. Clients pay only for the time your advisor actively works with you.

2. No Minimums, Maximum Accessibility:

Unlike traditional financial advisors, being a Garrett Advisor means that we have no income or investment account minimums for hourly engagements. This eliminates barriers, making our services accessible to individuals across different income brackets.

3. No Product Sales, Pure Expertise:

This is probably the most distinctive part of being a Garrett Planning Network advisor. We, as Garrett Advisors, distinguish ourselves by not selling financial products. Instead, we offer our time and expertise to guide clients through their financial journey. This commitment to objectivity ensures that the advice provided is solely focused on the client’s best interests.

4. Tailored Recommendations:

While not selling products, we do offer specific recommendations and opinions on various products and services that may be suitable for a client’s situation. Additionally, we can guide clients on where to obtain these products or services. If requested, we can also assist with plan implementation so whether it is rebalancing your employer’s 401(k) or giving a recommendation for how to invest your ongoing IRA or brokerage account contributions so that they align with your risk tolerance and time horizon, we can help regardless of whether they are held at Schwab, Vanguard, Fidelity, Betterment, etc.

5. Accessible Financial Guidance for All:

This is my favorite quality of being a Garrett Planning Network advisor – with fees structured as flat or on an hourly basis, MainStreet provides accessible options for individuals at every stage of their financial journey. Whether you’re a beginner with a quick question, a middle-income earner seeking ongoing financial assessment, or a do-it-yourself enthusiast in need of direction, Garrett Advisors cater to diverse financial needs. Our team has a wealth (pun intended) of knowledge ranging from:

• Debt payoff plans
• Experience with government employees, including both military and civilian
• Evaluating equity compensation
• Helping small business owners
• Working with individuals who are widowed or divorced.
• Planning for college
• Taking a gap year
• Relocating to another state or country
• Retirement income planning
• And so much more

In embracing the Garrett Planning Network model, clients gain not just financial advice, but a partnership built on trust, transparency, and a commitment to their financial well-being. If you’re intrigued by this innovative approach to financial planning, feel free to reach out with any questions. I say this with the most humility one can communicate in a brief article that our entire team at MainStreet loves what we do, and we are here to guide you every step of the way.

The post Unlocking Accessible Financial Advice The Garrett Planning Network Advantage appeared first on MainStreet Financial Planning.

The MainStreet Financial Planning Discussion Club

When: Tuesday 1-16-24 at 7:30pm Eastern; 4:30pm Pacific

~30-45 minutes

Recorded and able to retrieve for one week

How: Zoom Meeting

Free for current clients, $10 for guests

Email us for Recording!

Healthy Financial Habits for 2024

Hosted by: CFP®’s Katherine Edwards, Anna Sergunina, and Vida Jatulis

Join CFP’s Katherine Edwards, Anna Sergunina, and Vida Jatulis as we discuss how to cultivate healthy financial habits and implement systems that will help you reach your financial goals in 2024 – We will discuss topics such as:

-The power of consistent financial habits that not only lead to building long-term wealth but contribute now to your overall financial well-being
-How small changes in behavior can lead to significant financial improvements.
-The importance of setting specific, measurable, achievable, relevant, and time-bound (SMART) financial goals.
-Do your financial goals align with your personal values
-Automating financial processes to reduce stress and create a sense of financial balance
-The role of emergency funds and insurance in promoting financial peace of mind

The post Chalk Talk: Healthy Financial Habits for 2024 appeared first on MainStreet Financial Planning.