The start of the year is one of the most important planning windows — not because markets reset, but because rules, limits, and opportunities do.
Whether you’re actively building wealth, managing inherited assets, or preparing for retirement, these ten Q1 moves can help your financial strategy start the year aligned, intentional, and proactive.
- Revisit Your Estate Documents — Even If Nothing Changed
Estate planning isn’t static.
Q1 is the right time to confirm:
- Trustees and executors still make sense
- Guardianship designations are current
- Documents reflect tax law and family structure today
- Review Your Tax Strategy — Not Just Last Year’s Return
Tax planning is forward-looking. Q1 is when strategy has the most leverage.
Consider:
- Marginal tax bracket shifts
- Timing of income or bonuses
- Roth conversion opportunities
- Capital gains planning
- Confirm 2026 Contribution Limits — and Automate Them
IRS limits reset annually. Missing early contributions often means missed compounding.
Review and fund where appropriate:
- 401(k) / 403(b)
- IRA / Roth IRA
- HSA
- 529 plans
- Audit Beneficiaries Across Every Account
Outdated beneficiaries are one of the most common — and costly — oversights.
Check:
- Retirement accounts
- Life insurance
- HSAs
- Transfer-on-death brokerage accounts
Life changes often outpace paperwork.
- Align Investment Strategy With Real-Life Cash Flow
Your portfolio should support your actual spending rhythm.
Ask:
- What cash do I need this year?
- What can remain invested longer-term?
- Are my risk levels aligned with upcoming life events?
- Review Fees, Complexity, and Overlap
Over time, accounts multiply — and efficiency erodes.
Q1 is ideal for:
- Consolidating old plans
- Identifying overlapping funds
- Simplifying custodians and reporting
Especially relevant for: Pre-retirees approaching income phase
- Coordinate Tax Strategy With Investment Decisions
Tax and investment decisions should not live in silos.
Examples:
- Asset location (taxable vs. tax-advantaged)
- Realizing gains strategically
- Managing distributions intentionally
This is where proactive planning may offer advantages over reactive decision-making.
- Reassess Insurance Coverage
Coverage should evolve as wealth grows.
Review:
- Life insurance adequacy
- Umbrella liability coverage
- Long-term care considerations
Often overlooked — often critical.
- Document Your Financial “System”
High-functioning wealth isn’t about perfection — it’s about systems.
A clear system includes:
- What happens automatically
- What’s reviewed annually
- Who helps manage each piece
This reduces stress and decision fatigue.
- Schedule a Q1 Planning Check-In
Many effective planning strategies are revisited over time rather than set once.
A Q1 conversation helps:
- Surface blind spots early
- Adjust before deadlines hit
- Align planning with what’s changed
Schedule a Consultation
"*" indicates required fields
Disclosures:
Content is for informational purposes only and should not be considered an offer to buy or sell any securities or financial instruments, or to provide any investment advice or service. Cottonwood Wealth Strategies does not provide legal, tax, or accounting advice.