A Year-End Update from Full Circle Financial Planning

7 minutes ago

4 min read

As we get near the holiday season, the next two months tend to fly by! Between family gatherings, holiday preparations, and everything else that comes with this time of year, it's easy to put financial matters on the back burner.

Before we turn the calendar to 2027, we wanted to share a few timely reminders, highlight some impo

rtant changes coming in the new year, and introduce an exciting addition to our office.

As always, our goal at Full Circle Financial Planning is to help individuals and families stay informed and make confident financial decisions.

Before December 31: A Few Financial Reminders

The end of the year is a great opportunity to take a quick look at your financial picture and make sure there aren't any opportunities you've overlooked.

Retirement Contributions

If you're contributing to a workplace retirement plan such as a 401(k) or 403(b), now is a good time to review your contributions.

For 2026, the employee contribution limit for most 401(k) and 403(b) plans is $24,500, with additional catch-up contributions available for eligible individuals.

IRA contributions have a 2026 limit of $7,500, plus an additional $1,100 for those age 50 and older. Unlike most workplace retirement contributions, IRA contributions for 2026 can generally be made until April 15, 2027, subject to eligibility requirements.

A Few Other Items Worth Reviewing:

Beneficiaries: Have you reviewed the beneficiaries on your retirement accounts, life insurance policies, and other financial accounts? This simple step is often overlooked.
Charitable Giving: If you're planning to make charitable contributions, consider whether completing them before December 31 makes sense for your tax situation.
Tax Planning: Review your withholding, potential capital gains or losses, and any other tax considerations before year-end.
Life Changes: Retirement, job changes, inheritances, or changes in family circumstances can all affect your financial plan.

Sometimes a quick conversation before December 31 can make a meaningful difference.

Looking Ahead to 2027: Social Security & Tax Updates

Each year brings adjustments to important financial planning numbers. Here are a few changes worth knowing as we head into 2027.

Social Security Benefits Increasing 3.6%

The Social Security Administration has announced a 3.6% cost-of-living adjustment (COLA) for 2027.

For the average retired worker, that translates to an estimated increase of approximately $75 per month, bringing the average monthly benefit to $2,170.

The increase will generally begin with Social Security benefits payable in January 2027.

Updated Federal Income Tax Brackets

The IRS has also announced inflation adjustments to federal income tax brackets and standard deductions for 2027.

The standard deduction will increase to:

$33,200 for married couples filing jointly
$16,600 for single filers
$24,925 for heads of household

These adjustments may affect tax planning strategies, retirement distributions, and other financial decisions in the coming year.

For additional information, visit:

Social Security: https://www.ssa.gov/cola/

IRS Tax Updates: https://www.irs.gov/

Elections, Markets & Keeping Perspective

With the 2026 midterm elections now behind us, it's natural to wonder what the results could mean for the economy and financial markets.

Elections can certainly influence investor sentiment and contribute to short-term volatility. However, markets are influenced by a much broader range of factors, including corporate earnings, interest rates, inflation, and economic growth.

While political headlines may change quickly, our approach to financial planning remains focused on the bigger picture.

As we head into 2027, keeping perspective, diversification, reviewing financial plans, and making thoughtful adjustments when appropriate, are always sound financial moves.

The bottom line: Your financial plan should be built around your goals, your timeline, and your circumstances - not simply the latest headlines.

Welcome to Our Office: Emily Nestor Lippert of Perryman Law

We're happy to share that Emily Nestor Lippert, an attorney with Perryman Law, is now sharing office space with Full Circle Financial Planning!

Perryman Law is based in Flint, Michigan, and now has an additional office presence here in Lansing.

Estate planning is an important part of an overall financial plan, yet it's something that can easily get pushed aside.

Whether you're looking to establish a will or trust, update existing estate planning documents, or simply have questions about where to begin, Emily can be a valuable resource.

While Perryman Law and Full Circle Financial Planning remain separate practices, we're pleased to have an estate planning attorney conveniently located in our office.

If you'd like to be introduced to Emily to discuss your estate planning needs, just let us know. We'd be happy to help make that connection.

End the Year Strong. Start 2027 with a Plan!

As we wrap up 2026, we want to thank everyone who has connected with Full Circle Financial Planning throughout the year.

Whether you're approaching retirement, looking to get your finances organized, or simply wondering if you're on the right track, there's no better time to start the conversation.

End this year and start the next on the right foot by scheduling a meeting with Full Circle Financial Planning.

Call or text us at 517-225-2570 or email info@fullcirclefp.com to get started.

From all of us at Full Circle Financial Planning, we wish you and your family a wonderful holiday season and a happy, healthy New Year!