🌟 2025 = your financial glow-up year

Say Hello To Your Best Financial Year Yet

As 2024 comes to a close, it’s time to take control of your money and set yourself up for an even better 2025. In our last newsletter for 2024 (!) HerMoney CEO Jean Chatzky is sharing 6 actionable steps to do just that. Read on, or listen to the HerMoney Podcast*, for everything you need to know to make your 2025 financially fabulous.

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The HerMoney Podcast is made possible by Edelman Financial Engines.

#1: Rebalance Your Portfolio

The stock market has been on a tear this year, and shows no signs of slowing in early 2025. That’s why Jean Chatzky’s number one money move to make ASAP is to rebalance your investment portfolio.

"When the markets move so far, so fast, you are probably taking more risk than you expected to take unless you rebalance," says Chatzky. "You need to readjust your portfolio and bring [the amount you have in stocks] back down so that if, and when, the markets do turn tail you are not going to lose as much."

Wondering what the heck rebalancing your portfolio means and how to decide when to sell a stock? We discuss this topic (and so many others) in our investing club, InvestingFixx. Join us!

#2: Make Your Cash Work For You

The average bank savings account pays a little over four-tenths of one percent in interest. You can do better. If you shop around, you can still find high-yield savings accounts paying ten times that.

Don’t need your cash for a few years? Jean also recommends putting your money into a CD or a nonretirement annuity.

#3: Update Your Beneficiaries

If it’s been a while since you looked at the beneficiaries named on your insurance policies and retirement accounts, it’s time to do it now. Why? Retirement accounts and insurance policies have beneficiary designations that override a will.

And if you’ve experienced major life changes, such as marriage, divorce, death, or birth, you’ll need to update your beneficiaries, too. Bonus tip: "You want to make sure that you’ve also named successors for those beneficiaries," Chatzky says.

#4: Get Financially Organized

68% of consumers say having a budget would help them reach their financial goals – yet 40% say they’ve never had one, according to the CFP Board.

Looking to set yourself up for more financial success in 2025? Building a budget is key and Jean’s money makeover program, FinanceFixx can help. FinanceFixx is perfect for anyone who wants to create a budget, refresh an existing one, or find extra savings for a big money goal like retirement.

We have not one, but two sessions coming up in January, including a four-week program for those looking to fast-track their journey to financial freedom. Sign up today using code SAVENOW for a special discount.

#5: Give Now, Not Later

No, we’re not talking about charitable gifting (although that’s never a bad idea). "When I say gifting, I’m talking about annual gifting," Chatzky says. "Or using up your ability to give some of your money to your heirs now, while you’re alive, rather than at death."

A great question to ask yourself to assess if you should be doing this now rather than later is: Will your money help the people you want to help more during your life than at your death? Maybe it could help them buy a house or a car now when they’re in their 20s or 30s rather than later when they are more financially secure. One note: You just don’t want to over gift. That sets up a cycle where your kids will later have to step in and care for you. On the fence? Talk to a financial advisor about running the numbers.

#6: Harvest Your Tax Losses

Tax loss harvesting is when you sell losing stocks in your portfolio or losing investments to offset any gains that you’ve taken — any capital gains, liabilities, plus up to $3,000 in ordinary income. Check out a list of the top 10 losing stocks of the year here and see if you have any in your portfolio. Hint: This may be your sign to sell.

Thank you for being a HerMoney subscriber! Cheers to you taking control of your money in 2025, and beyond. 🥂

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*The HerMoney podcast is proudly sponsored by Edelman Financial Engines. Unlock your wealth potential with our sophisticated wealth planning. Continue your journey at EdelmanFinancialEngines.com. Sponsored by Edelman Financial Engines – Modern wealth planning. All advisory services offered through Financial Engines Advisors L.L.C. (FEA), a federally registered investment advisor. Results are not guaranteed. AM4002839.

HerMoney is not a client, agent, representative or affiliate of EFE.Edelman Financial Engines ("EFE") is a sponsor of the "HerMoney with Jean Chatzky Podcast," created by HerMoney Media. Inc. ("HerMoney") and provides cash compensation to HerMoney Media. HerMoney receives a sponsorship fee from Edelman Financial Engines depending on the number of podcast downloads, as measured by the end of the calendar year. The sponsorship fee is paid on a quarterly basis each year. In turn, HerMoney also provides promotional deliverables regarding EFE on the HerMoney podcast, newsletter, and social media channels. Due to this sponsorship arrangement, HerMoney has an incentive to endorse EFE and its services.

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