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Why now is an ideal time to do a financial reset, advisor says

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2 years ago

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I’ve got all the paperwork here

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More than half of U.S. consumers planned to make a financial resolution for 2025, according to a December poll by Discover Personal Loans. 

Even if you didn’t ring in the new year with some money goals in mind, it’s not too late to set some, experts say. In fact, now is a great time to get started.

“The ideal time for financial reset is usually at the beginning of the year,” said financial advisor Jordan Awoye, managing partner of Awoye Capital in New York City. “You’re able to start from scratch, see what you’ve done the year prior, and just have a clean slate.”

It helps that the 2025 tax filing season will begin on Jan. 27. You can consider your priorities and goals for the year ahead as you review your finances from last year, Awoye said.

More from Your Money:

Here’s a look at more stories on how to manage, grow and protect your money for the years ahead.

Saving and earning more, spending less, improving credit scores, building an emergency fund, and paying off or consolidating debt are among the top resolutions, according to Discover. However, almost all respondents said they anticipate at least one challenge — inflation, the state of the economy, unexpected or current expenses — may prevent them from achieving those goals. 

Morning Consult, on behalf of Discover, polled 2,201 adults in early November.

Focus on what you can control

Don’t allow the state of the economy — which you cannot control — or regret over past money mistakes to prevent you from moving forward. 

“If you’re feeling down on yourself and don’t have that right positive mindset, you might just continue down that downward spiral,” said Corbin Blackwell, a New York City-based certified financial planner with Betterment. “There is no amount too small to just get started. Maybe that’s saving. Maybe that’s paying down debt little by little.”  

Determine your strategy: Save or invest?

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Make sure your asset allocation is appropriate for your time frame, said Natalie Taylor, a CFP and founder of The Goodland Group in Santa Barbara, California. Understand market volatility and how it may impact your goals.

Some resolutions, like ensuring you have a fully-funded emergency savings account, are examples of what Taylor calls “base hit” goals. Saving might be the right strategy for these goals, which may be short-term or focus on preserving cash assets.

“You typically don’t want to use more aggressive strategies to achieve those from an investment standpoint,” she said. For cash-based goals, “we’d look at a more standard, diversified portfolio using high-yield savings or [certificates of deposit].”

Other resolutions like fully funding your child’s college education, buying a second home or retiring early may be considered “home run” goals and warrant investing in a diversified stock portfolio and possibly more aggressive strategies, Taylor said. 

The key is to focus on your goals for the year ahead and then plan the steps to achieve them.  

Steps to take now to achieve your financial goals

  1. Build a better budget. Track your monthly spending and how much you save from your take-home pay. Awoye said to ask yourself, “Do you have more money coming in than going out? And if you do not, how do you fix that? What expenses can you drop? What other streams of revenue can you create that work a little bit parallel with the streams of revenue that you have now?” While you must pay for everyday expenses and recurring household bills, you should also aim to stash money away in an emergency savings account. Experts advise setting a goal to save three to six months’ worth of expenses so that you don’t have to tap your credit card for an unplanned expense.
  2. Pay down high-interest debt, if you have any, and build savings. Yes, you can do both at the same time. However, some advisors say the interest rate you’re paying on the debt or earning on your savings can help determine which goal deserves more immediate attention. “Paying off the high-interest debt is pretty much the highest priority,” Blackwell said. “If you have credit card debt, which is probably costing you about 20%, double-digit interest at least, your dollars are probably best served paying that down.” 
  3. Focus on longer-term savings and investing. This is typically money you won’t need for at least 10 years. To invest your retirement savings, you might contribute to an individual retirement account (IRA) and/or 401(k) or workplace retirement plan. Put any extra money to invest in a taxable brokerage account to help turbo-charge your savings. Your time frame can help determine how you invest and what investments you choose.

Completing your financial reset is important, so you’ve set the stage for achieving your goals.

“Ultimately, where you’re going to find financial success is going to depend on what you define as successful,” Blackwell said. 

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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7 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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