Refresh Your Personal Finances for 2026

Auld lang syne! As a new year dawns, many folks commit themselves to healthy new habits, like a new workout regimen or diet. Others pledge to take on a task, like decluttering the closet or learning a new hobby. Yet taking time to organize your personal finances is a perhaps less-discussed way to prepare yourself for the year ahead—and beyond. Lucky for you, we have compiled a rundown of personal finance tips worth considering as Earth embarks on another trip around the sun.

Bolster Your Account Security

Unfortunately, hackers and other digital fraudsters have continued upping their game, employing new strategies and technology to access online investment or bank accounts. One report projects global losses from account takeover fraud will rise from $13 billion to $17 billion in 2025 tied to bot activity, infostealer malware (oh, the jargon!) and AI‑driven tactics.^[i] We don’t mean to scare you, but preemptively protecting your digital accounts is vital these days. Here are three simple ways to do so—all through your bank.

First, set up account alerts. This will notify you of every account transaction nearly exactly as it happens, helping you catch fraud quickly. Important, as time is of the essence: Federal laws like the Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) provide protection against liability for unauthorized charges or transfers, but they require timely reporting.^[ii]

Second, install two-factor authentication (2FA) on your accounts. 2FA is a security method adding a second verification step beyond a password, usually a one-time code sent to your phone or email, approval via a third-party app or some kind of biometric (think: fingerprint or facial scan). This will help keep your money safe even if a hacker somehow nabs your password.

Third, freeze your credit at the three big credit bureaus. Yes, yes, it can be a hassle. But if you aren’t applying for credit soon, this is a good step that can help prevent someone from opening a loan, cell phone account or what have you in your name.

Mind you, these aren’t perfect protections against all fraud. Nothing is. But they are a useful step to guard against many common digital threats.

Check Your Retirement Account Contributions

As a reminder, 2025 jumpstarted several provisions from 2022’s Secure 2.0 Act, including a big increase in the 401(k) catch-up contribution limit for those turning ages 60 to 63.

2026 brings a few more changes. To start, the annual contribution limit for employees participating in a 401(k), 403(b), governmental 457 plan and the federal government’s Thrift Savings Plan will rise to $24,500 from 2025’s $23,500.^[iii] IRA contribution limits will rise to $7,500 from $7,000.

On top of this, if you are age 50 or older, there are those catch-up contribution boosts. In 2026, that boost is $8,000 in 401(k), 403(b) and 457 plans, with those aged 60 – 63 allowed another $3,250 for a total of $11,250. For IRAs, you can contribute an additional $1,100 via catch ups.

Now, there is another twist some may encounter that is new this coming year. If your prior-year Federal Insurance Contributions Act (FICA) wages exceed $150,000 (for the 2026 contribution year, based on 2025 wages), you must make any catch-up contributions as Roth contributions. This means they would be taxed up front, with all gains and withdrawals being tax free. Feel free to grumble about Uncle Sam always taking a pound of flesh if this is you.

Generally speaking, it is wisest to contribute as much as possible as soon as possible, taking advantage of employer matching contributions, Health Savings Accounts (HSA) or other available benefits. Do you have kids just entering the workforce or starting a part-time job? Talk to them about contributing early. Even high schoolers or college students with part-time jobs may benefit. Those with earned wage income are eligible to open and fund a retirement account. Even if the sums aren’t huge, amounts contributed early on have more time to grow—a major advantage for long-term investors.

Check Your W-4 Tax Withholding

Employers must send you your W-2 by January 31, so be on the lookout. Once you receive it, first check for errors and ensure it matches your records. If you need to adjust your withholding, check out the IRS’s Tax Withholding Estimator to start a new W-4 form.

For this, you will need last year’s tax return and some recent paystubs—and your spouse’s, if applicable. You may also need a rough estimate of your medical expenses, mortgage interest payments and charitable donations for the year (and other deductions, if you anticipate itemizing). Using these inputs, the estimator calculates your projected full-year withholding and tax obligation, so just match the former with the latter on your W-4. Getting as close as possible to the right number can help mitigate the likelihood you over- or underpay Uncle Sam.

Revisit Your Asset Allocation

Start by reviewing your current mix of stocks, bonds, cash and other securities. Importantly, you want to do this holistically across all of your assets—don’t mentally account and ringfence certain accounts as “outside” consideration, unless it is funds pretty much pegged for a near-term expenditure. That is a psychological error that can lead to mistakes like holding excess cash.

Then, reassess whether your goals, time horizon and comfort with volatility have changed since your last check-in. Start with yourself. Have you had big changes to your health, marital status or your family situation? These could affect your time horizon. For example, if you gained new grandchildren this year and plan to pass assets to them after you are gone, this could extend the time you need your money to work for you. Or, conversely, plans for a big purchase in 2026 could shorten your horizon.

Then consider whether your goals changed in 2025. Are you still seeking growth, cash flow or some combination of the two? Once you clock this, finish by asking yourself a question: Does your current allocation actually reflect those goals? Generally, shorter time horizons and higher cash flow needs point to higher fixed income allocations to decrease the likelihood of having to sell securities in down markets. And vice versa for longer time horizons and higher growth targets. If your current allocation is misaligned, tackle the change now so you don’t have to worry later.

This isn’t an exhaustive list, mind you, but it is a great way to get 2026 started on the right financial footing. Regardless, we wish you and your loved ones a happy and safe new year.