The new year offers a great opportunity to reassess your financial strategies, especially considering recent IRS updates and anticipated policy changes under the new administration. Implementing informed financial practices now can lead to a prosperous future.
1. Set Clear Financial Goals
Defining your financial objectives can provide direction and help prioritize your actions. According to Ballentine, in creating a successful financial plan is to set obtainable financial objectives. Consider categorizing your goals into:
- Short-Term Goals
- Building an emergency fund, saving for a vacation, or paying off credit card debt.
- Mid-Term Goals
- Purchasing a home, starting a business, or funding education.
- Long-Term Goals
- Planning for retirement, wealth accumulation, or estate planning.
2. Employer-Sponsored Retirement Plans
If you have access to a 401(k), 403(b), or 457 plan through your employer, now is the time to ensure you’re maximizing contributions and leveraging any available employer match.
- Contribution Limits:
- For 2025, you can contribute up to $23,500.
- If you’re 50 or older, take advantage of the additional $7,500 catch-up contribution, allowing a total contribution of $31,000.
- Special Catch-Up Contributions:
- Workers aged 60 to 63 can contribute an additional $11,250 under the SECURE 2.0 Act, further enhancing their retirement savings.
- Employer Match:
- Many employers offer a matching contribution, effectively doubling a portion of your contributions. For example, if your employer matches 50% of the first 6% you contribute, that’s additional money added to your account.
- To maximize this benefit, contribute at least the percentage required to receive the full match.
3. Options for the Self-Employed
If you’re self-employed, you have several retirement account options tailored to your needs.
· Solo 401(k):
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- Contribution limits are the same as traditional 401(k)s, allowing up to $23,500 in employee contributions, plus an additional $7,500 for catch-up contributions if you’re 50 or older.
- As the employer, you can contribute up to 25% of your net earnings, up to a combined total limit of $70,000 in 2025 (or $77,500 for those 50 and older). Those from the age of 60 to 63 can have aggregate contributions to up to $81,250.
· SEP IRA:
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- A Simplified Employee Pension (SEP) IRA allows contributions of up to 25% of your net earnings from self-employment, with a cap of $70,000 in 2025.
· Traditional and Roth IRAs:
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- Contribution limits for 2025 remain at $7,000, with an additional $1,000 catch-up contribution for those 50 and older, totaling $8,000.
- A Roth IRA may also provide tax-free growth and withdrawals in retirement, depending on your income eligibility.
Why It Matters
Taking full advantage of these contribution limits not only helps you build a robust retirement fund but also provides significant tax benefits:
- Pre-tax contributions to traditional accounts reduce your taxable income for the year.
- Roth accounts grow tax-free, offering benefits in retirement when you make qualified withdrawals.
Whether you’re an employee or self-employed, the updated 2025 contribution limits offer an opportunity to strengthen your retirement strategy.
Whether you’re an employee or self-employed, the updated 2025 contribution limits offer an opportunity to strengthen your retirement strategy. Consider meeting with your HR department to adjust your contributions or consult with us to explore the best options for your unique situation.
4. Build or Strengthen Your Emergency Fund
An emergency fund acts as a financial safety net for unforeseen expenses. Aim to save three to six months’ worth of essential living expenses. Starting with small, regular contributions can gradually lead to a substantial fund.
5. Pay Down High-Interest Debt
High-interest debts can impede financial progress. Develop a repayment plan using strategies such as:
- Debt Snowball Method- Focus on paying off the smallest debts first to build momentum.
- Debt Avalanche Method- Prioritize debts with the highest interest rates to minimize overall interest payments.
6. Automate Your Savings
Automating contributions to your savings account can ensure consistency and discipline. These effortless, regular contributions can lead to a large fund over a period of time.
7. Stay Informed on Tax Changes
The IRS has released inflation adjustments for tax year 2025, including updates to tax brackets and standard deductions.
- Standard Deductions
- Single filers: $15,000, up from $14,600 in 2024.
- Married couples filing jointly: $30,000, an increase from $29,200.
- Heads of households: $22,500, up from $21,900.
8. Possible Policy Changes Under the New Administration
With President-elect Donald Trump set to take office, several tax policy changes are possible.
- Extension of 2017 Tax Cuts: Plans to make the individual tax provisions of the 2017 Tax Cuts and Jobs Act (TCJA) permanent, which are set to expire at the end of 2025.
- Corporate Tax Adjustments: Proposals to reduce the corporate income tax rate from 21% to 20%, or as low as 15% for companies manufacturing domestically.
- SALT Deduction Cap: Consideration of increasing the State and Local Tax (SALT) deduction cap from $10,000 to $20,000 for married couple filers.
9. How We Can Help
We can provide personalized strategies tailored to your financial goals. Work with us to explore:
- Optimizing investments.
- Retirement planning.
- Tax-efficient strategies.
- Estate planning.
10. Reflect and Stay Motivated
Regularly review your financial progress and adjust your plans as necessary. Celebrate milestones and remain adaptable to changes in your financial situation or goals.
Start Your Journey Today
Embarking on your financial journey in 2025 with informed decisions and strategic planning can lead to significant long-term benefits. Stay updated with IRS announcements and consider speaking with us to help you navigate the complexities of financial planning.
Sources located at the bottom of the article
Golf Tip of the Week
You’ll escape the trees more often with this effective strategy
As pretty as trees on a golf course can be to look at, they become a lot less appealing when they’re planted between you and the flag. Especially when you’re so close to the green, the temptation is to take a wedge and try to go over the tree. But if you’re like a lot of players, you’ve ended up in the tree more often than you’ve successfully made it over.
Instead of trying to hit a soaring wedge in these situations, Braid says to grab a much less lofted club and go under the trouble.
“Grab a seven iron and hit a big chip shot,” Braid said. “Get your feet closer together, lean towards the target, sternum slightly ahead of the ball. Let the handle lean towards the target as well. From there, we’re going to keep the club low, around hip high to hip high. We’re going to punch the ball out and let it roll up to the green.”
Hitting the high shot over the trees that lands softly on the green is the more exciting option, we get that. But if you want to hit the shot that’s going to put you in the best position to save par from the trees, you’ll want to hit Braid’s punch 7 iron.
Golf Tip adapted from golfdigest.comi
Recipe of the Week
Healthy 40-Minute Pork, Pepper and Rice Noodle Soup
Ingredients:
2 tablespoons olive oil
4 ounces shiitake mushrooms, stems removed, thinly sliced
2 medium carrots (about 4 ounces), chopped
1 red bell pepper (about 7 ounces), finely chopped
Kosher salt and freshly ground black pepper
2 cloves garlic, minced
One 1-inch piece fresh ginger, minced (about 1 tablespoon)
3 scallions, thinly sliced, white and green parts separated
1 pound ground pork
8 cups low-sodium chicken broth
6 ounces flat rice noodles
1/4 small head napa cabbage, thinly sliced (about 3 cups)
2 tablespoons low-sodium soy sauce
2 tablespoons rice vinegar
Toasted sesame seeds and sriracha, for serving, optional
Directions:
- Heat the olive oil in a large heavy-bottomed pot over medium-high heat until shimmering. Add the mushrooms, carrots, bell pepper, 1 teaspoon salt and a few grinds of pepper and cook, stirring occasionally, until the vegetables are softened, 4 to 5 minutes. Add the garlic, ginger and scallion whites and cook, stirring, until softened, 2 to 3 minutes. Add the pork, 1 teaspoon salt and a few grinds of pepper and cook, breaking up the pork with a spoon and stirring occasionally, until no longer pink, 5 to 6 minutes.
- Pour in the chicken broth and bring to a boil. Add the noodles and cabbage and cook until the noodles are tender and cooked through and the cabbage is tender but still holds a bit of crunch, about 6 minutes. Stir in the soy sauce and vinegar to combine. Season with salt and pepper.
- Ladle the soup into bowls, sprinkle with the scallion greens and top with some sesame seeds and sriracha if desired.
Recipe Tip adapted from foodnetwork.comii
Travel Tip of the Week
5 Ways to Safely Pop Your Ears After a Flight
Pop your ears using these tips, and learn how to keep them from clogging in the first place.
It’s been two hours since you left the airport and your ears still feel clogged.
Other than being mildly uncomfortable, ear blockage can put a damper on your travels as you struggle to listen to your tour guide, follow along in a business meeting, or chat with friends at the hotel bar.
The full, painful feeling occurs due to pressure differences in the middle ear. The eustachian tube, which supplies air to this part of the ear, can become obstructed when pressure changes cause inflammation.
Rather than wait for that inconvenient, stuffy feeling to go away on its own, you can speed up the process by utilizing safe and natural methods designed to clear your eustachian tubes and drain the fluids in your ears. These techniques can also come in handy if a cold or sinus infection has your ears blocked hours before a flight, and you want to prevent the potentially painful experience of flying with clogged ears.
So if it’s been a few hours since you got off the plane and you can’t quite hear your travel companion’s thoughts on the local cuisine, try one of these five methods to pop your ears and learn how to avoid clogging on your flight home.
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The Valsalva Maneuver
Close your mouth, pinch your nostrils together, and blow softly. The action of creating pressure in the back of the nose can open the eustachian tube and equalize the pressure. But be careful not to blow too hard so you don’t damage your eardrums.
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The Toynbee Maneuver
The Toynbee Maneuver works like the Valsalva Maneuver in that it helps to equalize the pressure in your ears. Using this method, pinch your nose and take a few sips of water to help you swallow, using the muscles of the throat to help open the eustachian tubes.
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Olive Oil or Hydrogen Peroxide
This technique serves to open up your eustachian tubes by softening and removing your earwax. Add lukewarm olive oil or hydrogen peroxide to an ear dropper and lie down with the affected ear facing up. Place three to five drops of liquid in your blocked ear and remain in that position for five to ten minutes. Next, switch sides with the affected ear facing down and wait for your ear to drain earwax and excess oil or hydrogen peroxide (make sure to have a towel pressed against your ear while you do this). When you’re finished, use a cotton ball or tissue to soak up any liquid at the entrance to your ear canal. You can use this technique three times a day.
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Warm Compress
Take a wash cloth, run it under warm water, and wring out the water. Apply the cloth to your ear for five to ten minutes, and the fluids in your ear should start to drain.
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Steaming
Boil a pot of water and transfer it to a large bowl. Create a tent with a towel by covering both yourself and the bowl with it. Inhale the steam to help thin the mucus and earwax in your ear. If you want, you can add a couple of drops of tea tree or lavender oil to the water to further reduce pain and inflammation. Breathe in until you feel your ear canals start to open up.
Similarly, you can also hop in the shower for 10 minutes. If your ear is clogged on your flight and you need quick pain relief, ask your flight attendant for a tea bag and two cups, one empty and one filled with hot water. Steep the tea bag in the cup of hot water, and then transfer the tea to the empty cup, keeping the tea bag and a little bit of water in the first cup. Hold that first cup up to your ear; the tea bag will lock in the heat from the water, and the steam from the tea bag will help relieve your ear pain.
How to Prevent Clogged Ears Next Time
The best way to get rid of an ear blockage is to prevent it from happening in the first place. To that end, here are a few tricks to keeping your eustachian tubes clear on your next flight.
- Take Sudafed or your preferred decongestant one hour before your flight to thin the mucus in your sinuses. (Of course, follow directions and consult a doctor if there’s any question as to whether or not you should take the over-the-counter drugs.)
- Open up your eustachian tubes by using nasal spray both before you board and 45 minutes prior to landing.
- Wear earplugs to relieve air pressure mid-flight.
- Chew gum, yawn, or suck on hard candy when you’re taking off and landing.
Travel Tip adapted from travelandleisure.comiii
Copyright © 2025. Ballentine Capital Advisors. All rights reserved.
Our mailing address is:
Ballentine Capital Advisors
15 Halton Green Way
Greenville, SC 29607
Sources:
- Ballentine, B. (2023) Wealth on Purpose: Your Path to Grow, Protect, and Keep Real Wealth
- IRS Newsroom: 401(k) Limit Increases to $23,500 for 2025; IRA Limit Remains $7,000
- IRS Newsroom: IRS Releases Tax Inflation Adjustments for Tax Year 2025
- Tax Foundation: Overview of TCJA Provisions Expiring in 2025
- CBH Insights: Trump Tax Policy Changes in 2025 and What to Expect
- MarketWatch: SALT Deduction Cap Discussions Under New Administration
- Consumer Financial Protection Bureau: Paying Down Debt
- Federal Reserve: Economic Well-Being of U.S. Households Report
- Congressional Research Service: SECURE 2.0 Act Summary
Disclosure:
Ballentine Capital Advisors is a registered investment adviser. The advisory services of Ballentine Capital Advisors are not made available in any jurisdiction in which Ballentine Capital Advisors is not registered or is otherwise exempt from registration.
Please review Ballentine Capital Advisors Disclosure Brochure for a complete explanation of fees. Investing involves risks. Investments are not guaranteed and may lose value.
This material is prepared by Ballentine Capital Advisors for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation or any particular security, strategy, or investment product.
No representation is being made that any account will or is likely to achieve future profits or losses similar to those shown. You should not assume that investment decisions we make in the future will be profitable or equal the investment performance of the past. Past performance does not indicate future results.
Advisory services through Ballentine Capital Advisors, Inc.
ihttps://www.golfdigest.com/story/hitting-under-trees-golf-approach-shot-tips
