2026 Financial Tips from Boston Financial Advisors

Many Boston financial planners are seeing the same trend: individuals approach the new year expecting their financial plan to “keep working,” yet they haven’t revisited key assumptions in 12–18 months. 

Given the pending 2026 tax changes and shifting retirement rules, reviewing your plan should be your first step.

A review often begins with two core areas of interest:

Have you updated your goals and assumptions? Life changes quickly, and financial plans require regular adjustments to reflect new priorities, such as caring for aging parents, planning a career shift, helping children with college expenses, or preparing for retirement. Even if nothing major changed over the past year, market behavior and tax law updates could influence how your financial strategy is structured.

Have you made all the deductible retirement contributions you want or need to make? When working with retirement planners in Boston, contribution timing is a frequently discussed topic. Some accounts allow contributions up to tax filing deadlines, while others must be funded by the end of the calendar year. Making your final contributions before year-end may influence your tax position for 2026 and beyond.

A comprehensive review of your financial plan with financial advisors in Boston is often the easiest way to spot gaps, whether those gaps are contribution-related, tax-related, or tied to shifts in your long-term objectives.

Life insurance plays a more significant role in financial planning than many people realize, especially in states like Massachusetts, where estate taxes apply at lower thresholds. As you begin thinking about 2026, you may have important questions about life insurance that are worth exploring. 

Do you know whether your coverage is term or permanent, and whether it still meets your needs? Policies purchased many years ago may no longer reflect today’s level of income, family responsibilities, or estate-planning strategies. Term insurance may expire during your retirement, while permanent coverage may provide cash value, support legacy planning, or help offset estate taxes, depending on how your assets are structured.

Is your insurance company in strong financial standing? This point is often overlooked. Because life insurance is a long-term contract, the financial health of the carrier is crucial. Reviewing company ratings with a Boston financial planner can help you assess whether your policy remains well-positioned.

A life insurance audit can clarify whether your current coverage aligns with your broader retirement and estate goals, or whether updating your policy may better support your long-term plan.

People often focus on their investments while overlooking risk safeguards that support their entire financial picture. As fiduciary asset managers in Boston, we encourage our clients to take a step back and review their wealth accumulation and preservation strategies together.

Have you revisited your goals and personal priorities? Your financial plan isn’t just numbers. It’s shaped by what you want your life to look like in the next five, ten, twenty, or more years. Rising longevity means you and your spouse may be retired for thirty years or more. 

Reviewing goals annually helps confirm that your plan and your portfolio still reflect what matters most.

Have you reviewed your risk safeguards recently? This includes:

• Emergency fund levels
• Life insurance coverage
• Disability insurance
• Beneficiary designations
• Will and trust documents
• Healthcare proxies and durable powers of attorney

These items are foundational, yet many remain untouched for years, gathering dust in closets. At SFA, our Boston financial planners emphasize that risk safeguards should be reviewed at the same pace as your investment strategies.

When your goals, protection, and investments all work together, your plan becomes more durable across a range of market conditions and life events.

With the passage of the One Big Beautiful Bill Act, the outlook for estate planning in 2026 has shifted dramatically. For years, families anticipated a significant drop in the federal estate, gift, and generation-skipping transfer exemptions at the end of 2025. Instead, the OBBBA moves in the opposite direction. 

Beginning January 1, 2026, the federal exemption will increase to $ 15 million per person or $ 30 million for married couples who elect portability, with future adjustments for inflation. This represents one of the most substantial increases to the federal exemption in decades.

Massachusetts residents, however, must still account for the state’s separate estate tax system. The Massachusetts exemption remains fixed at $ 2 million, and no changes are scheduled for 2026. As a result, many families may owe state estate tax even when they fall well below the new federal threshold.

This mismatch between state and federal rules makes proactive planning especially important. With federal thresholds rising and state thresholds remaining in place, your estate plan may need recalibration to reflect where potential exposure still exists and where new opportunities may become available.

Estate, Gift, and GST Tax Changes Under OBBBA

Beginning January 1, 2026, the federal estate, gift, and generation-skipping transfer (GST) tax exemption increases to $15 million per person, or $30 million for married couples using portability. These amounts will continue to adjust for inflation over time.

This matters because, under the 2017 Tax Cuts and Jobs Act, the higher exemption was scheduled to expire at the end of 2025. Without new legislation, it would have dropped back to roughly half that level. The OBBBA steps in to prevent that rollback and maintains the exemption at a significantly higher level going forward.

Unlike the prior law, the updated exemption does not come with a built-in expiration date. While Congress can always revisit tax rules in the future, the exemption is treated as ongoing rather than temporary.

Other Major Tax “Sunsets” the OBBBA Addresses

Estate taxes aren’t the only area affected. The OBBBA also addresses several tax provisions that were scheduled to expire after 2025.

• Individual income tax rates and deductions: The personal tax brackets introduced in 2017 were set to expire at the end of 2025. Under the OBBBA, those rates continue beyond that date. The larger standard deduction and several related itemized deduction rules also remain in place.
• Charitable Giving Rules: Starting in 2026, updated charitable deduction provisions will take effect. These include changes that allow some taxpayers who do not itemize deductions to receive a tax benefit for charitable contributions.
• Temporary deductions and credits: Not everything in the bill is permanent. Several newer provisions, including deductions related to tips, overtime pay, auto loan interest, and certain age-based benefits, are scheduled to expire in 2028 unless Congress extends them.
• SALT deduction cap: The state and local tax (SALT) deduction cap increases from $10,000 to $40,000 under the new law. That higher cap is not permanent and generally drops back to $10,000 after 2029.
• Clean energy and vehicle credits: Several clean energy and electric vehicle tax credits from prior legislation are reduced or phased out. Some end in late 2025, while others continue into 2026 before coming to a stop.

Have you recently reviewed your estate documents with your attorney? Even if you have a will or trust in place, outdated documents may not reflect the upcoming tax environment. Boston estate planning attorneys are helping families reassess trusts, beneficiary arrangements, titling decisions, and overall transfer strategies.

Should you consider gifting or life insurance trust strategies? For some families, gifting can be a way to transfer assets under today’s higher exemption, especially if the value of those assets is expected to grow. Others may find that introducing or updating an irrevocable life insurance trust (ILIT) helps keep insurance proceeds outside the taxable estate. The right approach depends on your goals, the size of your estate, and how comfortable you are giving up control of certain assets.

Would a life insurance trust help offset future estate tax costs? An ILIT can hold a policy outside of your estate, which may help provide liquidity for heirs who will eventually face estate tax obligations. This strategy is a frequent point of discussion for families with significant illiquid assets, such as real estate, private equity, or business interests. Working with advisors who understand the financial, tax, and legal components can help you determine whether this aligns with your estate goals.

Is gifting appropriate or premature in my situation? Gifting isn’t a one-size-fits-all strategy. Some families prefer to gift early to reduce future estate values, while others prioritize keeping assets available during their lifetime. A review of your cash flow, long-term needs, and planning priorities can help determine whether gifting now supports your broader financial picture or whether it may be better to wait and explore alternatives later in life.

Each of these questions points to the same conclusion: thoughtful coordination among your financial advisor, estate attorney, and tax professional can help you determine the best way to prepare for the future in a manner that aligns with your goals and comfort level.

Required Minimum Distributions (RMDs) continue to evolve under recent legislation, leaving many investors unsure about how to prepare.

Would a qualified charitable distribution (QCD) help support your philanthropic goals while managing taxable income? For individuals already taking RMDs, a QCD allows gifts to come directly from an IRA to a qualified charity, which may help limit current tax liabilities. This strategy appeals to individuals who want to support charitable causes while minimizing their tax burden during retirement years. 

Should you consider Roth conversions before reaching RMD age? Roth conversions are receiving new attention as families prepare for the 2026 tax sunset. Converting earlier may spread taxable income across more years, and future Roth withdrawals are not subject to RMD rules.

At SFA, our financial advisors in Boston frequently run multiple scenarios to compare how different conversion schedules may impact long-term retirement outcomes. Because Roth decisions involve both taxes and investment planning, many people prefer to walk through these conversations with a fiduciary asset manager and tax professional who work together.

Retirement planning isn’t just about accumulating more savings; it’s about creating a sustainable income structure that supports your lifestyle over multiple decades. As Boston financial planners, we are seeing a growing interest in strategies that coordinate investment decisions with tax planning and overall spending requirements. 

Do I have enough stability for withdrawals during down markets? This question often arises for retirees and those nearing retirement. A portion of your portfolio may need to support withdrawals even when markets are strained, which is why a certain level of stability can be beneficial. Reviewing how much of your allocation is positioned for near-term spending needs can help clarify whether your current structure aligns with your long-term withdrawal plan.

Do I have enough growth potential to support my future needs? As noted, retirement can last twenty to thirty years or more, which means your portfolio may need some exposure to long-term growth to offset the impact of inflation and provide more income late in life. A review of your investment strategy can help you determine whether your current approach includes sufficient growth-oriented assets to align with your risk tolerance, time horizon, and spending goals.

Does your current portfolio strike a balance between risk safeguards and the growth needed to support your lifestyle? Balancing short-term stability with long-term growth is a key challenge in retirement planning. Over time, market changes, as well as tax rules and shifts in your personal goals, may influence how your portfolio is managed. 

Are you drawing from the proper accounts at the right time? Coordinating taxes across IRAs, Roth accounts, taxable accounts, and Social Security is central to retirement planning. Strategic withdrawals can help manage yearly tax exposure, which is particularly important as rules shift heading into 2026.

Do you have a plan in place to support your needs for income and financial stability throughout your retirement years? While no advisor can guarantee future outcomes, planning can help illustrate how different choices may impact your financial life over extended periods. Our retirement planners in Boston frequently utilize detailed projections, scenario modeling, and tax-aware withdrawal strategies to help clients make informed decisions.