Starting Strong – Five Financial Strategies for 2026
Presented by Retirement GPS: Navigated by Zynergy
Setting the Course for a Strong Financial Year
The start of a new year is one of the most important checkpoints in your financial journey. Markets shift, tax rules evolve, and life circumstances change — so taking a moment to adjust your plan now can help ensure you stay intentional, confident, and in control all year long.
Here are the five key strategies we encourage every member to review early in the year to strengthen their retirement plan for 2026.
1. Explore a Roth Conversion Strategy
Roth conversions allow you to shift money from a traditional IRA/401(k) into a Roth IRA — paying taxes now in exchange for tax-free withdrawals later and no RMDs. Ever.
Why it matters:
- Reduces long-term tax risk
- Helps manage future RMDs
- Creates more flexibility in retirement income planning
Rule of thumb:
Convert up to the top of your current tax bracket — don’t overflow it.
2. Know Your Required Minimum Distributions (RMDs)
If you’re age 73 or older, the IRS requires you to withdraw a minimum amount from your retirement accounts each year. Missing one can trigger a 25% penalty, making early planning essential.
What to do now:
- Confirm your 2026 RMD amount (based on 12/31/25 account values)
- Decide when you want to take it — monthly, quarterly, or year-end
- If you don’t need the income, consider a Qualified Charitable Distribution (QCD) to give tax-free
3. If You’re Still Working, Make Early IRA Contributions
The sooner you contribute, the more time your dollars have to grow.
2026 contribution limits:
- IRA: $7,500 (+$1,100 if age 50+)
- 401(k): $24,500 (+8,000 if age 50+)
Why early matters:
Making contributions in January instead of next December gives your money an extra year of compounding power.
4. Review Last Year’s Distribution Rate
Your withdrawal rate is one of the biggest drivers of long-term success.
A sustainable goal for most retirees is 4–5% per year, adjusted for your personal plan.
Ask yourself:
- Did I take more than planned last year?
- Did I take less than I could safely enjoy?
- Do I need to adjust my monthly distributions for this year?
Purposeful spending — not just preservation — is the heart of a strong retirement plan.
5. Rebalance Your Portfolio (If Needed)
After a year of market movement, your investment mix may have drifted.
Rebalancing restores your target allocation so your portfolio reflects the risk level you actually want, not what the market assigned you.
Key reminder:
Avoid rebalancing in early January, when many automatic rebalances occur. February is often the best time to review and reset.
Action Steps for the First Quarter
- Schedule your early-year planning review
- Confirm your Roth conversion plan and coordinate with your CPA
- Set up automatic IRA or 401(k) contributions
- Review last year’s spending rate
- Rebalance if needed to stay aligned with your long-term plan
