Improving financial health in 2026: Expert advice on planning for big events in the coming year

2025 COMING TO A CLOSE. ARE YOUR FINANCES READY FOR THE NEW YEAR? FINANCIAL EXPERT FRED KREUTZER IS JOINING US LIVE THIS MORNING WITH WHAT YOU NEED TO KNOW AHEAD OF THE NEW YEAR. GOOD MORNING. GOOD MORNING JENNIFER. SO IS THERE ANYTHING WE SHOULD BE DOING IN THE NEXT COUPLE OF DAYS TO GET READY? WELL, LET’S AGAIN, LET’S START GATHERING UP OUR INFORMATION. HOW DO WE DO? LAST YEAR IN 2025. AND NOW WE’RE GOING INTO 2026. WHAT HAS CHANGED OR MAYBE WHAT’S COMING UP. MAYBE WE HAVE GRANDCHILDREN ON THE WAY. MAYBE WE HAVE A WEDDING COMING UP. MAYBE KIDS ARE GOING TO COLLEGE. YOU KNOW, WE GOT TO PLAN FOR THAT AS WE GO INTO THE NEW YEAR. ANY CHANGES TO SOCIAL SECURITY THAT WE SHOULD BE AWARE OF? WELL, WE’RE GOING TO HAVE A 2.8% INCREASE IN COST OF LIVING. BUT ONE THING PEOPLE GOT TO UNDERSTAND IF YOU’RE BORN AFTER THE AGE OF 1960, YOUR FULL RETIREMENT AGE BENEFITS STARTS AT AGE 67. YES, WE COULD TURN IT ON AT 62, BUT WE TAKE A 30% HAIRCUT COMPARED TO WHAT YOU WOULD HAVE GOT AT 67. AND THAT’S HUGE. AND I WAS SAYING, BUT MOST RETIREMENT IS 65, AND YOU ARE EXPLAINING THAT, YOU KNOW, A LOT OF THESE DECISIONS WERE MADE YEARS AND YEARS AGO WHEN PEOPLE WEREN’T LIVING AS LONG. THAT’S THE PROBLEM. YOU HAVE A PROBLEM, BUT THAT’S A GOOD THING. PEOPLE ARE LIVING LONGER. LIVE LONGER. 1935 LIFE EXPECTANCY WAS 62. SO WHEN THEY BUILT THE SYSTEM, THAT’S WHAT IT WAS BUILT ON. BUT THEY DID CHANGE IT IN 1983. SEEING THE LONGEVITY. AND NOW THAT’S WHY PEOPLE ARE NOW MY AGE, HAVE TO WAIT UNTIL 67 TO GET FULL RETIREMENT AGE. N█OW YOUCAN TURNITONIN BETWEEN 62 AND 67. IF YOU’RE WORKING, YOU’RE LIMITED TO THE AMOUNT OF MONEY YOU CAN MAKE OR YOU’RE PENALIZED ON TAKING THAT BENEFIT. SO WE HAVE A SAY IN OUR OFFICE. YOU TURN IT ON NOT BECAUSE YOU CAN, BUT BECAUSE IT MAKES FINANCIAL SENSE. THIS IS WHY WE HOPE WE HAVE FOR ONE KS AND IRAS. IF I DO RETIRE AT 65, MAYBE I CAN USE THEM TO FILL THE GAP. BUILD A BRIDGE THAT I CAN RETAIN AND GET MY SOCIAL SECURITY BENEFIT. LET’S STAY ON SOCIAL SECURITY FOR JUST A SECOND, BECAUSE LET’S SAY YOU HAVE A SPOUSE WHO, UNFORTUNATELY MAY PASS AWAY IN THE NEXT YEAR, AND MAYBE YOU KNOW THIS AND YOU CAN YOU CAN SORT OF PLAN FOR THIS. THERE ARE SOME THINGS TO KEEP IN MIND WHEN IT COMES TO SOCIAL SECURITY AND BEING ABLE TO COLLECT BENEFITS. YES. THAT’S HUGE. SO IN THAT SITUATION, YOU KNOW, THIS IS WHY WE HAVE DISCUSSIONS WITH OUR CLIENTS. IF YOU’RE THE LARGER INCOME EARNER, IT’S VERY IMPORTANT THAT YOU DELAY YOURS. WHY? THAT BECOMES THE SURVIVOR BENEFIT FOR EITHER ONE OF YOU. SO MY SITUATION I’M MARRIED, SO IT’S NOT ABOUT ME. IT’S ABOUT WE. IT’S ALL ABOUT MY PLANNING. MY DECISION WILL AFFECT MY WIFE. SO IN THAT SITUATION, IF I HAVE AN OLDER SPOUSE AND THEY PREDECEASE ME, IF I HAVE NOT TURNED MY BENEFIT, I CAN COLLECT A WIDOW’S BENEFIT ON THEIRS. AND MY BENEFIT, LILY CAN CONTINUE TO GROW UNTIL AGE 70. WOW, THAT THAT IS HUGE FOR A LOT OF FOLKS TO KEEP IN MIND. A LOT OF PEOPLE GET REALLY CONFUSED ABOUT THAT. ANOTHER THING IS THAT A LOT OF FOLKS THIS YEAR ARE STILL PAYING OFF THEIR HOLIDAY GIFTS FROM LAST YEAR. WE SEE THAT ALL THE TIME, AND YOU GOT TO REMEMBER, THE AVERAGE CREDIT CARD IS 20% TODAY, SO THERE’S NO PLACE I CAN PUT YOUR MONEY AND GUARANTEE YOU 20%. YOU’RE GOING TO HAVE TO ATTACK THAT. WE CAN’T GET BEHIND ON THESE CREDIT CARDS. I SEE IT ALL TOO OFTEN, AND IT BECOMES A DETRIMENT TO ANYBODY’S FINANCIAL SITUATION. IT’S NO DIFFERENT THAN A KID COMING OUT WITH BIG COLLEGE LOANS, AND THEY WANT TO BUY A HOUSE. WELL, YOU GOT A LOT OF COLLEGE LOANS. IT’S REALLY HARD TO MOVE FORWARD. CREDIT CARDS IS THE SAME THING. I KNOW IT’S CHRISTMAS TIME. WE WANT TO GIVE. WE WANT TO GIVE THESE NICE THINGS OUT. BUT AT WHAT COST DOES IT COME? SO LET’S TRY TO GET AHEAD OF IT IN 2026. LET’S NOT LET THAT GET BEHIND THAT THOUGH. HOW DO YOU DO THAT IF YOU’VE ALREADY IF YOU’VE ALREADY DONE THE DAMAGE, YOU KNOW, WHAT CAN YOU DO? IS THERE ANYTHING YOU CAN DO TO MAKE THINGS EASIER FOR YOURSELF? SO ATTACK THE BILLS. YOU KNOW WHAT ARE WHAT AM I? YOU KNOW, HOW MANY THINGS DO WE PAY THAT WE’RE PAYING A MONTHLY FEE ON THAT? MAYBE WE COULD CUT BACK A LITTLE BIT. EVERY ONE OF US HAS A WAY WE COULD CUT BACK A LITTLE BIT ON SOME AREA. YOU GOT TO ATTACK THIS CREDIT CARDS BECAUSE WHAT THEY’RE DOING IS YOU’RE ONLY PAYING THE INTEREST. YOU’RE NOT EVEN PAYING DOWN THE PRINCIPAL. SO IF YOU CAN’T ATTACK IT, THEN WE’RE BEHIND. IF YOU’VE GOT A 401 K, YOU MUST DO AT LEAST A MATCH, BECAUSE THAT’S FREE MONEY THAT THEY’RE PUTTING IN YOUR POCKET. BUT IF MAYBE YOU TAKE MAYBE SEND ME PUT IN 10% IT MAYBE I’LL ONLY DO THE 5% WHICH GIVES ME THE MATCH. BUT I WANT TO ATTACK THE CREDIT CARD BECAUSE EVEN THAT 41K, THEY’RE NOT GIVING YOU A 20% RETURN, RIGHT? SO THAT’S, YOU KNOW, YOU’RE DOING WHAT YOU CAN TO SET YOURSELF UP FOR SUCCESS FOR THE YEAR AHEAD. LOOKING AT THE WAYS THAT YOU CAN CUT ANYTHING ELSE THAT WE SHOULD THINK ABOUT GOING INTO 2026, A LOT OF PEOPLE, IT’S THEIR GOAL TO TO BE MORE FINANCIALLY SOUND. IT IS. BUT, YOU KNOW, YOU’VE GOT TO TAKE THE TIME TO SIT DOWN IF YOU’RE BY YOURSELF OR A SPOUSE, CREATE A BUDGET. YOU KNOW, IF YOU DON’T KNOW WHAT’S COMING IN, HOW ARE YOU GOING TO KNOW WHAT’S GOING OUT? RIGHT? YOU’VE GOT TO HAVE A BUDGET. YOU KNOW, EVERYTHING BEGINS AND STARTS WITH A BUDGET. DON’T SWEAR AT ME. JUST SAYING THE B WORD AT ME RIGHT THERE. HEY, SPEAKING OF THE B WORD, BROWNS. GO, BROWNS! LET’S GO! BROWNS! ALL RIGHT, FRIENDS, A