Smart Money Moves to Make for 2026

Planning opportunities to help pre-retirees feel more confident heading into the new year.

As the calendar turns to 2026, many pre-retirees are starting to feel the shift: retirement is no longer a distant concept. It’s real, approaching fast, and suddenly decisions feel more permanent. This stage of life brings both opportunity and complexity, especially when it comes to your finances.

Whether you’re retiring in five years or still figuring out your ideal timeline, here are some smart money moves to make now that can strengthen your financial position heading into 2026 and beyond.

1. Review Your Retirement Income Plan

Now’s the time to pressure-test your retirement plan. Ask yourself:

How much income will you need in retirement and where will it come from?
Are your investments structured to generate reliable income?
Have you accounted for inflation, taxes, and healthcare?

Run a projection using today’s numbers and assumptions. It’s better to discover a gap now than after your paycheck stops.

2. Strategically Plan Roth Conversions

With tax brackets still relatively low (thanks to the extended Tax Cuts and Jobs Act provisions), 2026 could be another prime opportunity to convert pre-tax dollars to Roth while rates remain favorable. This is especially important if:

You’re in a lower tax bracket now than you expect in retirement.
You’re trying to reduce future Required Minimum Distributions (RMDs).
You want to leave tax-free assets to your heirs.

A little tax planning now could save you significantly in the future but timing matters.

3. Check Your Health Coverage Timeline

If you’re planning to retire before 65, make sure you have a solid plan for health insurance. Whether it’s COBRA, a spouse’s plan, or a marketplace policy, healthcare costs can sneak up fast.

If you’ll be turning 65 in 2026, start preparing for Medicare enrollment:

Learn about IRMAA (income-related Medicare surcharges).
Review your Modified Adjusted Gross Income (MAGI) from two years prior (that’s 2024 for 2026 premiums).
Look for ways to manage taxable income now to keep Medicare costs lower later.

4. Max Out Retirement Contributions While You Can

If you’re still working, 2026 might be one of your last chances to make full contributions to your 401(k), Roth 401(k), or IRA:

Take advantage of catch-up contributions if you’re 50 or older.
Consider shifting future contributions toward Roth options if you expect higher taxes later.
Evaluate whether a Mega Backdoor Roth IRA strategy is available to you through your 401(k) plan.

Once retirement hits, you may not be able to contribute anymore so make this year count.

5. Rebalance Your Investment Portfolio

Market conditions change. So should your portfolio. Heading into retirement, it’s time to reassess:

Are you too concentrated in one sector or stock?
Do you need to reduce volatility or generate more income?
Are you diversified globally and across asset classes?

A smart portfolio in your 40s and 50s may not serve you as well in your 60s and 70s. Rebalancing doesn’t mean getting ultra-conservative it means being intentional.

6. Revisit Your Withdrawal Strategy

If you’re within five years of retirement, map out a game plan for which accounts you’ll tap and in what order.

Should you delay Social Security and draw from your brokerage account first?
Should you use IRA withdrawals to “fill up” low tax brackets before RMDs kick in?
Do you want to preserve certain accounts for legacy or long-term care?

The right withdrawal strategy can extend the life of your portfolio and reduce taxes over time.

7. Update Estate & Legacy Documents

If your financial situation has changed in the past few years or your children are now adults, it may be time to:

Review your trust, will, and powers of attorney.
Update your beneficiary designations on retirement accounts and insurance.
Consider charitable giving strategies or gifting plans if you’re approaching the estate tax threshold (which may be cut in half after 2025).

You’ve worked hard to build your nest egg. Make sure it’s protected and aligned with your wishes.

8. Build or Replenish Cash Reserves

Even if retirement is still a few years away, start building your cash cushion now. Think of this as your personal "retirement runway." We typically recommend:

At least 6–12 months of living expenses in cash or cash equivalents.
Use a high-yield savings or money market account (some are still yielding 4–5%).
Keep cash reserves separate from your investment accounts so you’re not forced to sell during down markets.

Having accessible cash helps reduce stress when retirement begins and creates breathing room in volatile years.

9. Prepare Emotionally, Not Just Financially

Too often, the emotional side of retirement gets overlooked. Pre-retirees spend decades in the routine of work and stepping away can feel disorienting. Think about:

What you want your days to look like in retirement.
Where you want to live and whether downsizing or relocating makes sense.
How you’ll stay active, connected, and engaged.

The money is important. But peace of mind and purpose matter too.

Final Thoughts

2026 offers pre-retirees a valuable window for preparation especially while tax laws are still favorable and the markets continue to evolve. A few strategic moves this year could significantly impact your income, taxes, and confidence in the years ahead.

At Seaside Wealth Management, we walk alongside pre-retirees every day as they navigate this transition. Whether you’re retiring in 1 year or 10, the best time to start preparing is now.

Let 2026 be the year you get proactive with a plan that works for you.

This commentary reflects the personal opinions, viewpoints and analyses of the Seaside Wealth Management, Inc. employees providing such comments, and should not be regarded as a description of advisory services provided by Seaside Wealth Management, Inc. or performance returns of any Seaside Wealth Management, Inc. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Seaside Wealth Management, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.