Boosting finances for 2026
Experts have provided guidance to individuals who want to improve their financial wellness in the new year.
Recent developments have introduced tax changes, increased health care costs, raised the risk of investing and impacted the economy, according to a news article from Kiplinger. The experts cited in the article stressed that individuals should take advantage of opportunities to set themselves up for success in 2026.
They detailed that the One Big Beautiful Bill Act contained new deductions: $6,000 for single taxpayers aged 65 years and older and $12,000 for married taxpayers who are both eligible. Although older taxpayers can also claim this tax break without itemizing their deductions, there are income limits of $75,000 and $150,000, respectively. To reduce taxable income to qualify, individuals can increase their pretax contributions to retirement or health savings accounts, postpone bonuses until 2026 or make charitable contributions.
All employees were encouraged to max out their contributions to their employer’s 401(k) plans to lower taxable income.
The experts noted that enrollees in the Affordable Care Act, employer coverage or Medicare are expected to see higher premiums, out-of-pocket costs and deductibles in the new year. They recommended that employers weigh the benefits of more affordable plans during their open-enrollment periods.
Because of how volatile the stock market has been since the introduction of tariffs, the experts suggested that individuals who are investing should rebalance their stock-bond asset mix to account for the greater growth of certain stocks such as the S&P 500, ensure they have a well-diversified portfolio to dampen risk and consider shifting funds from stocks to tax-sheltered accounts like 401(k)s and individual retirement agreements. Individuals who are investing may also sell favorable investments in taxable accounts or sell unfavorable investments to offset gains and lower the taxes owed for 2025.
At the start of 2026, individuals can take steps to improve their finances for the year, including adjusting their withholding, resetting their retirement account contributions, protecting themselves against fraud and timing charitable donations.
Read more: Kiplinger
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