The best things to do with your money, according to 5 financial planners

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• I asked financial planners for their best advice for my money in 2025 so I know what goals to set.
• I expect to have lower income this year, so converting money in a traditional IRA to a Roth IRA may help.
• While it may be tempting to invest in stocks that have grown recently, that strategy is risky.

Every year, I set a number of financial goals. However, most of them never make it off my to-do list. The main reason is that I don't know which ones are the most important or even worth starting first.

To help me stay focused and pick actionable and strategic goals, I decided to get input from professionals.

I asked five certified financial planners to share their No. 1 tip for managing money.

1. Update your budget

Before diving into financial goals, certified financial planner Jason Fannon recommended that people first take inventory of their finances and create a detailed household budget.

"This is the building block for overall wealth management, as it allows savers to understand how and why they are spending money," he said. "Once they have a detailed understanding of their expenses, they can review and improve expenditures and build a surplus of cash flow monthly."

Once that happens, Fannon said you can then take advantage of tax-deferred accounts (such as a 401(k), IRA, or HSA), which also improves your tax situation.

Fannon suggested that I set aside one hour on the first of each month to review my previous month's budget and project the current month.

"It's important to measure your progress each month throughout the course of the year. By committing 12 hours a year to this exercise, savers will improve their overall net worth," he said.

2. Consider a Roth conversion

When I explained to certified financial planner Said Israilov that my income in 2025 is likely to be much lower than previous years, he recommended that I consider a Roth conversion.

"If you find yourself in a lower tax bracket in 2025, whether due to a job loss or a decision to work part-time, it might make sense to transfer a portion of your funds from a traditional IRA to a Roth IRA," he said. "The amount you convert will be treated as taxable income for the year of the conversion."

The biggest benefit of doing this, according to Israilov, is that the converted funds will grow tax-free in your Roth IRA, and you won't pay taxes on withdrawals as long as you meet the Roth distribution rules.

3. Review your insurance and estate plans

Certified financial planner Stefan Greenberg mentioned something that's been at the top of my personal to-do list: creating an estate plan and reviewing my insurance policies.

"If you don't already have an estate plan — including a will, power of Aattorney, and health care proxy — now is the perfect time to prioritize it," Greenberg said." Planning ahead not only gives you greater control over your future but also ensures that your legacy is preserved according to your wishes."

Greenberg also mentioned additional benefits that come with an estate plan, like minimizing unnecessary taxes and avoiding the lengthy probate process.

On the insurance front, he suggested reviewing all of our policies to ensure they align with our financial needs.

"It's important to have a clear understanding of the key types of insurance — such as life, long-term care, homeowners, auto, and disability insurance," he said. "Major life events like marriage, divorce, having children, buying a home, or starting a business can significantly impact the coverage you require."

4. Focus on your retirement accounts

I wanted to set one retirement goal this year, and certified financial planner Faron Daugs suggested contributing systemically to a tax-advantaged account like an IRA, Roth IRA, or your employer's retirement plan.

He said that people whose employers offer a matching program should contribute the amount needed to receive the full match, as this is essentially "free money" that can help further support their long-term financial reserve.

"Another avenue to explore would be maximizing your contributions to the IRS limit to take full advantage of the tax efficiencies," he said.

Since I have an established retirement account that I've been contributing to for years, Daugs suggested looking into what stocks the money is invested in and taking a look at my strategy.

"Focus on growth-oriented investments like stocks that can help expand your passive income," he said. "When you approach retirement, consider shifting your investments to more conservative options that reduce risk."

5. Diversify your investment portfolio

I asked certified financial planner Jason Dall'Acqua if I should change up my investment strategy. He suggested evaluating my investment portfolio and sticking to a diversified approach.

"Since 2025 brings a lot of unknowns, it could be best to evaluate your investment portfolio and stick to a diversified approach," he said. "Maintain exposure to different sectors of the economy and different types of investments such as stocks, bonds, cash equivalents, and real estate."

Jason Dall'Acqua also said that it can be tempting to invest in stocks that have experienced tremendous growth over the past few years, like tech stocks, but this could come with risk.

"With a changing political landscape and economic agenda, it remains to be seen how that will impact different types of investments," he said. "A diversified approach helps to manage your portfolio risk and better weather different market and economic cycles."