Spring Financial Planning Check-Up
April is one of those pivotal months in financial planning where small actions can have an outsized impact on your year. So, let’s discuss some top of mind financial planning items to revisit this month. First and foremost, if you haven’t already filed your taxes, this is the final stretch—make sure your return is submitted or that you’ve filed an extension before the deadline. But don’t stop there. April is also your last opportunity to make prior-year contributions to IRAs and HSAs, which can potentially reduce your tax bill and boost long-term savings at the same time. It’s worth double-checking whether you’re eligible for a Roth IRA or if a backdoor Roth strategy makes sense based on your income.
Once taxes are squared away, shift your attention to what your return is telling you. If you owed more than expected or received a large refund, that’s not just a one-time event, typically it’s a signal that you need to make updates to your withholdings for the year ahead. Use it to adjust your withholding or estimated tax payments for the rest of the year so you’re not caught off guard again.
Around this time, it’s also smart to revisit your cash flow and savings plan. Bonuses are often paid in Q1, and if you received one, decide intentionally where that money is going—whether that’s topping off emergency savings, investing, or paying down debt.
April is also a good checkpoint for your investment strategy. Markets tend to move quickly in the first quarter, so take a look at your portfolio and rebalance if things have drifted too far from your global target allocation. While you’re at it, confirm that your 401(k) contributions are on track to hit your annual goal, especially if you’re aiming to max it out. Note that in 2026, if you’re under age 50, the IRS 401(K) contribution limit is $24,500.
Finally, don’t overlook the less obvious but equally important pieces of your financial life. Review your benefits elections if you’ve had any recent life changes, make sure your estate documents and beneficiaries are up to date, and take a few minutes to check in on your insurance coverage. Think about it as your financial spring cleaning. Financial planning isn’t about drastic, big moves—it’s about staying consistent and intentional, which is why we believe in working with a financial professional to help keep you accountable when life gets busy.
April is simply a natural moment to pause, recalibrate, and make sure the rest of your year is set up the right way. If you have questions about any of these items or want help making sure you’re on track, feel free to reach out at info@shermanwealth.com or schedule a complimentary intro call here.