By Martin J. Swiecki, CFP®, CLU
Did you know that fewer than 40% of Americans start the year with a clear financial plan? According to a recent survey¹, this lack of preparedness can lead to missed opportunities, especially during the critical transition between tax years. January is the perfect time to take action, align your goals, and build momentum for long-term success.
1. Rebalance Your Portfolio for 2025 Success
Market fluctuations throughout the past year can leave your portfolio unbalanced, increasing risk or limiting growth potential. Physicians and other high-earning professionals often have concentrated positions in healthcare or employer stock that may require diversification.
Here’s how to get started:
Review your asset allocation: Compare your current mix with your target strategy.
Rebalance thoughtfully: Diversify by reducing exposure to high-risk sectors and reinvesting in a broader range of assets.
Plan for tax efficiency: Use tax-loss harvesting early in the year to offset gains.
💡 Example for Medical Professionals: Many physicians hold significant investments in healthcare companies, potentially exposing them to industry-specific volatility. Rebalancing into sectors like technology or consumer goods can help stabilize long-term performance.
2. Leverage Tax-Advantaged Accounts from Day One
The beginning of the year is the ideal time to maximize contributions to tax-advantaged accounts, giving your money more time to grow. Additionally, with the tax year transition, early action can help you take advantage of new contribution limits and avoid last-minute decisions.
Actions to take:
Maximize 401(k), IRA, and HSA contributions early.
Explore Roth IRA conversions while your taxable income is lower.
Consider funding a 529 education savings account to begin planning for college expenses.
💡 Example for Medical Residents: Residents earning a lower taxable income may benefit from starting Roth IRA contributions early, locking in tax-free growth while building a solid financial foundation for their future.
💡 Example for Automotive Executives: With industry changes like EV development and stock option shifts, early contributions to a deferred compensation plan can ensure executives optimize tax benefits while planning for future liquidity needs.
3. Ensure Your Estate Plans Reflect Life Changes
Estate planning isn’t static. As families grow or circumstances change, so should your plans. The start of the year is the perfect time to ensure your documents align with your intentions.
What to review:
Beneficiary designations: Update accounts, including retirement and insurance policies.
Wills and trusts: Reflect new family additions or property acquisitions.
Healthcare directives: Assign decision-makers who align with your current wishes.
💡 Example for Families: A Southeast Michigan business owner with multigenerational wealth might create a family trust to ensure assets are preserved and distributed according to their legacy goals.
4. Protect Yourself with Comprehensive Insurance Coverage
Insurance plays a critical role in protecting your financial plan. Regular reviews ensure that you’re adequately covered as your circumstances evolve.
Key steps to take:
Life insurance: Evaluate coverage amounts based on family needs.
Disability and long-term care insurance: Confirm policies align with your income and future goals.
Umbrella insurance: Add this coverage to protect against liability claims, especially if you’ve acquired new assets.
💡 Example for High Earners: A professional in Michigan’s growing tech sector might need to expand umbrella insurance to cover increased net worth, including stock options or real estate.
5. Set Financial Goals That Drive Action and Results
The new year is a fresh start, and January is the perfect time to set actionable, measurable financial goals.
Here’s how to structure them:
Be specific and measurable: Set objectives like “save $20,000 for a house down payment” or “reduce debt by $10,000.”
Automate progress: Use automatic contributions to savings or investment accounts.
Adjust for changes: Incorporate recent expenses, income shifts, or new goals.
💡 Example for Entrepreneurs: A Southeast Michigan business owner might set a goal to invest in renewable energy or local businesses, aligning personal wealth with community impact.
Why Professional Guidance Matters
Starting the year strong often requires professional support. At The Valletta Group, we bring a personal and methodical approach to financial planning, ensuring every decision aligns with your goals. Inspired by my engineering background and my family’s journey from Malta, I understand the importance of building systems that support long-term aspirations.
Given Michigan’s unique economic landscape—spanning established industries like automotive to emerging sectors like renewable energy—tailored financial planning is more important than ever. A localized approach ensures you’re capitalizing on regional opportunities while navigating potential risks.
Partnering with a fiduciary advisor provides:
Tailored strategies for your unique circumstances.
Proactive planning to stay ahead of life’s changes.
Comprehensive guidance for taxes, investments, and beyond.
Ready to Transform Your 2025?
Year-end and January planning are critical moments to set yourself up for success. Take advantage of this opportunity by scheduling a complimentary consultation today. Let’s build a personalized financial roadmap to help you achieve your goals.
Our financial advisors focus on your personal goals and needs to build a responsible and robust wealth profile. Get in touch with us to set up a consultation. To schedule a meeting, call (248) 720-1780 or email mswiecki@vallettagroup.com.
¹ Source: NerdWallet, "Data Shows Financial Decisions Lag in the New Year. [Link]
About Martin
Martin Swiecki is the Founder and CEO at The Valletta Group, a wealth management firm based in Northville, Michigan, with a quarter century of experience helping individuals and their families navigate life’s transitions. Working closely with business owners and entrepreneurs in the medical, legal, and automotive industries as they pursue their aspirations, Martin leads a team focused on delivering tailored capabilities and services. He loves making a difference in clients’ lives by helping them pursue their goals with proper planning and providing comfort and peace that someone is looking out for them.
Since starting his career in 2003, Martin has been focused on listening to his clients, seeking to gain deep insight into who they are and aspire to be—apart from their investments. He founded The Valletta Group to pursue what he believes is “A Better Way” to serve his clients.
The name of the firm, Valletta, holds special significance. Valletta is the capital city of Malta, a small island off the coast of Sicily. When Martin envisioned creating his own firm, he struggled with finding the right name. He didn’t want to use his own name or anything generic. His mother, who moved from Malta to the U.S. in her early 20s, inspired the name. Growing up, Martin and his family would visit Malta every other summer, maintaining a close connection with their heritage. In 2019, Martin took his wife, Jessica, and their two young children, Evelyn and George, to Malta, where they stayed in Valletta. It was during this trip that his wife suggested naming the firm The Valletta Group. The name not only honors Martin’s mother’s perseverance in starting a new life in the U.S. but also serves as a meaningful family tribute and a conversation starter.
Martin holds a bachelor’s degree in engineering graphics and design from Western Michigan University. He earned his CERTIFIED FINANCIAL PLANNER®, CFP® designation in 2011 and became a Chartered Life Underwriter (CLU) in 2006. Outside of work, Martin enjoys spending time with his family, and pursuing outdoor activities such as golfing, boating, and fishing. To learn more about Martin, connect with him on LinkedIn.
Comments