The More You Know: Key Steps to Help Improve Your Financial Future 

By The Lerner Group on April 21, 2026

If managing your personal finances feels like a daunting task, you are not alone. According to a 2025 Allianz Life study, nearly half of Americans (47%) do not have a written financial plan[1], and long-term planning—especially for retirement—continues to take a back seat for many households.

The consequences of limited financial knowledge are significant. In 2025, Americans estimated they lost more than $246 billion due to a lack of financial literacy, or roughly $948 per adult[2], through avoidable fees, poor financial decisions, and missed opportunities.

You may be asking yourself: “Where should I even start?” Here are some practical tips and strategies to help you begin taking control of your personal finances.

Retirement Planning

To many people, compound interest is considered the eighth wonder of the world. While that may be a bit hyperbolic, saving early and consistently remains foundational to long-term retirement success.

Despite this, confidence around retirement remains fragile. Recent surveys show that only about 45% of non-retired Americans believe they will be financially comfortable in retirement, and roughly 40% of workers are not saving enough to maintain their lifestyle in retirement[3]. Concerns are being driven by longevity, rising healthcare costs, inflation, and uncertainty surrounding Social Security benefits.

Here are a few ways to strengthen your retirement strategy:

• Maximize contributions to employer retirement plans.
  • For 2026, the employee contribution limit for 401(k) and 403(b) plans is $24,500, with a standard $8,000 catch-up contribution for those age 50+.[4]
  • Individuals ages 60–63 may be eligible for a higher catch-up contribution of up to $11,250, depending on plan provisions[5].
  • At a minimum, contribute enough to receive the full employer match.
• Consider backdoor Roth IRA contributions if your income exceeds Roth eligibility limits. This strategy involves making a nondeductible contribution to a traditional IRA and then converting it to a Roth IRA. IRS rules apply, so coordination with a tax advisor or financial planner is essential.
• Self-employed? Retirement planning opportunities can be substantial:
  • Solo 401(k): total contributions of up to $72,000 in 2026[6] (or more with eligible catch-up contributions).
  • SEP-IRA: employer contributions up to 25% of compensation, capped at $72,000 in 2026[7].
  • Defined benefit plans may also be appropriate for high-income earners seeking larger deductions.
• Model your retirement income needs realistically.
  Work with a financial advisor—or use retirement projection tools—to compare current savings against future spending needs, factoring in longevity, healthcare costs, and inflation.

Income Tax Planning

Taxes can have a significant impact on wealth accumulation, investment returns, and long-term planning outcomes. While April is when most people file returns, effective tax planning requires year-round attention.

Consider the following strategies:

• Understand the difference between your marginal tax bracket and your effective tax rate. Knowing what you actually pay after deductions and credits can inform decisions around charitable giving, Roth conversions, or part-time work in retirement.
• Review asset location. Holding tax-inefficient investments in tax-deferred accounts and tax-efficient assets in taxable accounts can help improve after-tax returns.
• Donate appreciated securities instead of cash. This strategy can eliminate capital gains taxes while still allowing you to deduct the full fair market value of the gift.
• Manage withholding and estimated payments carefully. If income fluctuates year to year, maintaining safe harbor withholding or making estimated payments can help avoid costly IRS underpayment penalties.

Estate Planning

Estate planning is essential regardless of your level of wealth. A well-structured plan ensures that your wishes are honored and that your loved ones are protected.

Key steps include:

• Establish foundational documents, including wills and financial and healthcare powers of attorney. These documents also allow you to name guardians for minor children and outline specific bequests.
• Review your estate plan regularly, particularly as family circumstances change or as federal and state exemption limits evolve.
• Account for state-level estate taxes, which often have exemption amounts well below the federal level.
• Review beneficiary designations annually, especially after life events such as marriage, divorce, birth of a child, or changes in net worth.
• Explore advanced planning strategies, including gifting, trusts, and charitable planning vehicles, to help reduce estate tax exposure during life.

Insurance Planning

Insurance plays a critical role in protecting income, assets, and family members from financial risk.

Best practices include:

• Review existing life insurance policies to confirm they still align with your goals or explore conversion options if circumstances have changed.
• Evaluate property, casualty, and umbrella coverage, particularly following increases in net worth or changes in property values.
• Assess health and long-term care insurance, including how current coverage integrates with Medicare and potential Medicaid planning strategies.

While this is not a comprehensive list, addressing even a few of these areas today can meaningfully improve your long-term financial outlook. And you don’t have to do it alone.

If you’d like guidance, The Lerner Group can collaborate with your accountant, attorney, and other advisors to help develop integrated investment, tax, estate, and insurance strategies aligned with your personal goals.

[1] https://www.allianzlife.com/-/media/Files/Global/documents/2025/07/22/09/10/EXT-1127.pdf

[2] https://www.financialeducatorscouncil.org/financial-illiteracy-costs/

[3] https://www.minneapolisfed.org/article/2025/saving-for-retirement-in-america

[4] https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500

[5] https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500

[6] https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500

[7] https://www.irs.gov/retirement-plans/plan-participant-employee/sep-contribution-limits-including-grandfathered-sarseps