The Best Money Move for 2025

Okay my friends, here we are in a new year! I send heartfelt wishes for health and happiness. For you, and for your loved ones. Let’s always remember that is what matters most.

Does money matter? Of course it does. It is the means to financial freedom and security.

And there is a lot on the table in Washington in 2025 that could impact your household’s financial security.

Notice I said “could.” We don’t know what exactly will be proposed, nor do we know for sure what will ultimately get green-lit by Congress.

As you and I sit here in early January, the best move I think you can make right now is to not make any financial moves in haste. Because you think or worry that something may happen. Or you are excited and hopeful that something may happen.

The bottom line is that right now, We. Don’t. Know.  And making financial decisions based on hunches is never a good idea.

Here’s an action plan for right now:

1. Stay in touch.

I promise that I will report on any policy changes that impact your financial security and offer my best advice on what to do. And what not to do.

I can’t stress this enough: there is a difference between a policy being floated, and a policy being enacted. Right now we are at the floating stage.

Perhaps the most unsettling part for many of you is the mention of reducing Social Security (and Medicare) benefits. Please don’t let that concern push you to change your strategy for delaying your start date to collect benefits. Be patient. Floating is not policy.

And keep in mind that Social Security is a very popular program, regardless of party affiliation, and that a significant portion of retiree households rely on it for all (or a majority) of their income. I don’t pretend to know how Congress will act, but it would seem that they should be concerned that a majority of constituents like and rely on Social Security. Moreover, as I have explained before, anyone saying the system is “broke” is fearmongering. And you, my friend, are not going to act on fear.

I totally get the itch to “do something,” especially when you are anxious or concerned. And the good news is there are likely plenty of money moves you can and should be considering right now.

For example, when was the last time you logged into your retirement and investment accounts and checked your overall asset allocation: how much is invested in stocks, how much in bonds, and how much in cash? The U.S. stock market is up about 30% for the year, as I write this in late December 2024. And it has nearly doubled in the past five years.

Great news indeed. But if you have just been letting your long-term investments ride, might you have too much invested in stocks? Depending on how hands-off you have been, your 60% allocation to stocks could now represent 70% or so of your overall portfolio. Are you okay with that? Or would it make sense to reduce your stock allocation to match your risk and investing goals going forward?

You and I have no idea what 2025, or 2026, or 2036 will bring. But we do control our asset allocation strategy. And I want you to make sure your current asset allocation is in sync with the risk you are comfortable with going forward.

Need another financial job? Check your credit card statements and look for all your recurring payments. I bet there are plenty you have forgotten about, and no longer need. Cancel them. The expensive ones you need? Check if there are better deals to be had. And contact customer service and ask for a better deal.

And if you are carrying an unpaid credit card balance you definitely should give customer service a call. Card companies often will reduce the interest rate on your credit card balance, but only if you ask!

I want to repeat my promise: When there is actual news on what will happen with your money and financial future, I will be right here explaining the facts and offering my advice on the best moves based on those facts.  In the meantime, I hope you find the space and grace to take care of yourself, and those you love. That’s my best, and most timeless, advice.