By Steve Dinnen
New Year’s resolutions always start with losing a few pounds. Here at dsm Wealth, we’d also suggest putting your finances in order after you finish at the gym.
Resolutions are a multi-lane street, said Dennis Markway, regional director Apella Wealth in Johnston. They will work for you whether your financial situation is already in good shape or it’s “a challenging situation and you want to make it better.”
Do you want to travel more? Buy a vacation home? These are goals that could benefit from resolutions to actually pull them off. So start with the end in mind, said Phillip Ramsey of Uncommon Wealth Partners in Ankeny. Before you make any financial move, ask yourself: What do I want my future to look like? Your investments should align with that vision, not just with what’s popular or convenient.
Define your goals. Be specific — retire early, buy a home, start a business. Then calculate what it will take to get there.
Match investments to the time horizon. Short-term goals need liquidity; long-term goals can handle volatility.
Diversify your money. Don’t rely solely on a 401(k). Consider brokerage accounts, Roth IRAs and other vehicles. Social Security and pensions help for retirees.
Review regularly. Life changes, markets change — your plan should adapt.
Take inventory of your financial life, said Gretchen Muller, communications director at West Des Moines-based financial planner Foster Group. Know what you own, where it’s stored and how it’s accessed. This includes bank accounts, investment portfolios, insurance policies and even digital assets like subscriptions and cryptocurrency. Consider documenting account numbers, log-in credentials and key contacts with a password manager. Share access information securely with trusted family members.
A succession plan for physical and digital assets is increasingly important. “Don’t leave your loved ones guessing,” Muller said. A well-organized financial system could provide peace of mind and simplify decision-making during emergencies.
Next up:
Review your tax withholding to ensure accuracy for the upcoming year.
Update your 401(k) contributions to align with any changes in income.
Confirm your 2026 Required Minimum Distribution based on tax-deferred account balances as of 12/31/2025. (See the article below.)
Add charitable giving to your financial planning to support causes that matter to you in 2026 and maximize tax-efficiency through donor-advised funds or appreciated stock donations.
Update beneficiary designations to reflect any life changes.
Calculating an RMD is almost as simple as A, B, C
Calculations for Required Minimum Distributions (RMDs) are so simple even I can do one. All you need to do is go online and search for “RMD calculations” and calculator tools will pop up like spring dandelions.
All of them use the same methodology: Divide your account’s Dec. 31 balance from the previous year (2025), plug in what birthday you’ll hit this year (2026), then blend in a life-expectancy table drawn up by the IRS (there are three). If you have multiple IRAs, you have to make a calculation for each account separately.
Here’s an example:
Account balance on Dec. 31: $274,000.
Age: You’ll turn 73 in 2026, factor is 26.5.
Calculation: $274,000 divided by 26.5 equals $10,339.62. This is your RMD.
RMDs apply to IRA accounts, 401(k) plans, 403(b) plans and 457(b) plans, as well as IRA-based plans such as SEPs, SARSEPs and SIMPLE IRAs. Take note: While there is no RMD for a Roth, there is for an inherited Roth.
Retirees can fulfill their RMD by making a Qualified Charitable Distribution directly from their IRAs to a qualified charity. This option allows individuals at least 70 and a half years old to donate up to $105,000 annually without being counted as taxable income.
