A new year brings fresh opportunities, and 2025 is no exception. With a new U.S. president and leadership changes in the Senate, there could be shifts in tax laws that impact your financial future. To stay ahead, it’s important to review your financial situation, reassess your goals, and implement strategic planning. By being proactive, you can confidently navigate any potential changes.

Here are 10 key steps to help you start 2025 with financial strength and clarity.

1. Review Your Financial Plan and Goals

Take a moment to reflect: Have your financial priorities changed over the past year? A thorough review can ensure that your strategy aligns with your long-term vision and that your assets are positioned effectively.

Your J.P. Morgan team can assist by using Wealth Plan Plus, a specialized planning tool that projects cash flow over time. This analysis can help you identify risks and adjust your portfolio to stay on track with your financial goals.

2. Organize Your Accounts and Estate Planning

Start by reviewing the ownership and beneficiary designations on your accounts, life insurance policies, and retirement plans. Ensuring these reflect your current wishes is crucial for asset distribution and potential tax benefits.

It’s also wise to review your estate planning documents, including executors, trustees, and guardians, to confirm they remain aligned with your intentions. Consider any major life changes over the past year, such as marriage or the addition of a new family member, and update your plans accordingly.

3. Complete Important Financial Tasks

Set yourself up for success by checking these items off your list early in the year:

• Maximize contributions to your retirement accounts, such as IRAs and 401(k)s, to take full advantage of tax benefits.
• Make tax-efficient gifts to family members. In 2025, you can give up to $19,000 per recipient ($38,000 per married couple) without triggering gift taxes.

4. Maintain the Right Cash Reserves

Ensure you have enough liquid cash to cover expenses for one to five years, fund planned purchases, and seize investment opportunities. With potential interest rate cuts in 2025, you may want to secure favorable yields that align with your financial needs.

A portfolio line of credit can provide quick access to cash, allowing you to avoid selling investments at an inopportune time. If the interest on such a loan is tax-deductible, borrowing could also improve your tax efficiency.

5. Strengthen Your Investment Portfolio

To protect gains from last year and prepare for potential market volatility, consider the following investment strategies:

• Increase Income Generation – Focus on assets that provide steady income, such as high-quality corporate bonds, dividend-paying stocks, and preferred shares.
• Guard Against Inflation – Diversify with real estate, commodities, and infrastructure investments, which tend to perform differently from traditional stocks and bonds.
• Explore Alternative Investments – Options and structured notes can help manage downside risks while maintaining growth potential. ETFs with active option strategies can also enhance income and reduce volatility.

6. Optimize Tax Efficiency

While tax laws may change in 2025, any new policies could take time to implement. In the meantime, take steps to maximize tax efficiency:

• Place tax-inefficient assets (such as high-turnover investments) in tax-advantaged accounts like IRAs.
• Use tax-loss harvesting to offset gains in taxable accounts and focus on long-term capital gains, which are taxed at lower rates.
• Plan your withdrawals carefully—typically, it’s best to withdraw from taxable accounts first, followed by tax-deferred and then tax-free accounts.
• If you hold executive compensation such as stock options or RSUs, keep track of vesting schedules and tax implications to manage your overall financial picture effectively.

7. Consider Gifting to Family

The lifetime gift tax exclusion is set to drop significantly in 2026, making 2025 an important year for family gifting. Individuals can currently give up to $13.99 million tax-free ($27.98 million for married couples). If you have already reached your lifetime exclusion, you can still gift up to $380,000 this year ($760,000 for couples) without incurring transfer taxes.

8. Plan Your Charitable Contributions

Use the new year to align your charitable giving with your financial plan. Donor-advised funds (DAFs) allow you to pre-fund future donations while receiving an immediate tax deduction. If you donate long-term appreciated securities instead of cash, you can eliminate capital gains taxes and enhance the impact of your gift.

If you’re required to take IRA distributions, consider donating up to $108,000 directly to a qualified charity to reduce taxable income. However, DAFs and private foundations cannot receive these distributions.

9. Strengthen Family Financial Communication

Holding regular family meetings fosters unity and ensures financial values are shared across generations. These discussions help family members understand wealth management, make informed decisions, and create a legacy of responsible financial stewardship.

10. Stay Vigilant Against Cyber Threats

As technology evolves, so do cybersecurity risks. Follow these best practices to protect your financial information:

• Be cautious when using AI tools—avoid sharing sensitive data that could be misused.
• Use strong, unique passwords and enable two-factor authentication for all accounts.
• Stay alert for phishing attempts and scams. Verify unfamiliar contacts before sharing personal information and avoid clicking suspicious links.
• Be cautious about scanning QR codes from unknown sources, as they may lead to fraudulent sites.

By taking these proactive steps, you can start 2025 with confidence and financial security. A well-organized plan will help you navigate economic shifts, maximize your resources, and achieve long-term success.