Top Financial Lessons from 2024: Credent’s Year in Review

Whether you are a long-time client committed to financial freedom or someone new to Credent and ready to take your finances seriously, we’re proud that many of you pursued financial wellness in 2024.  

We released a handful of articles this year to support you, helping you understand your wealth, reach your goals, and maximize your impact.  

Below is a recap of our 2024 content, including the top financial lessons from each month. Review these insights and use our resources to kick-start your new year.

To start the year, we reassessed what to expect from 2024 and commented on key market trends and indicators, including 10-year annualized rolling returns and the concentration of returns in the S&P 500.  

We helped you start the year strong with our advisors’ financial tips for the new year, a list of five simple ways to pursue financial freedom, and a reminder about the necessity of time in the market.  

In addition, we covered a few specific topics: how to determine a personalized inflation rate and answers to 11 essential HSA questions.  

This month’s big takeaway: We can analyze the economy and market, but much of it is out of our control (e.g., inflation, geopolitical events, market volatility). However, there is a lot we can control in response to what happens (e.g., creating a personalized inflation rate, setting and pursuing financial goals, and leaning into the financial resources available to us).

In February, we discussed financial gaps, including the gap between economic forecasts and reality, which creates short-term volatility in the market, and gaps in income (sometimes caused by inflation), including Social Security income. 

We also bridged a frequent financial gap that occurs when people are unprepared for changes in retirement planning.  

This month’s big takeaway: Financial gaps are common, especially without a financial plan or a financial planner to update you on relevant changes. Be aware of what you may be missing, where your knowledge gaps leave you guessing, or where your resources don’t meet your needs.  

March focused on areas of financial forgetfulness, the things you know but may overlook, such as the impact of capital gains taxes, rolling over a 401(k) from a past job, or asking specific questions before you retire.  

We also took time to remember our view of 2024 and provide updated insights.  

This month’s big takeaway: It’s easy to forget financial to-dos or tripping points, especially if you manage your finances solo. Review lessons learned and to-dos often. Alternatively, maintain your relationships with your financial advisors so they can understand your needs and prevent anything from falling through the cracks.  

April was a back-to-the-foundations review of financial planning. We covered five reasons you need a financial plan and five essential tax planning topics to consider before Tax Day. 

We also addressed the fortitude and preparation investors need to stay invested during geopolitical events and market volatility.

In addition, we debunked three Social Security myths, which is one example of how making assumptions instead of building a plan can lead to trouble. 

This month’s big takeaway: Don’t downplay the importance of planning and preparing well. A good plan can be the difference between maximizing your income or falling short, missing out on returns or staying invested when the going gets tough, and feeling confident in your retirement or retiring with nothing but a shaky wish that things will turn out okay.

This month, we addressed concerns familiar to many investors: navigating potential economic slowdowns, making financial mistakes, and preparing loved ones for the future, whether teaching them financial lessons or giving them the resources they need.  

This month’s big takeaway: Nobody wants to be kept awake at night by financial questions or concerns. That’s one of the benefits of working with an advisor — peace of mind for you and those you care about most. Acknowledge your worries, seek answers, and ask for help. 

June’s content was all about timing. Much of financial success comes from playing the long game and understanding that different times (in life, in the economy, in retirement) require different things.  

We covered ways to stay financially healthy over time, how to help your children develop a healthy relationship with money at all stages of life, and what to do the first day, week, month, and year of retirement. 

Additionally, the economy and market often evolve over time. This month, we addressed the state of inflation and updated our view on the concentration of returns in the S&P 500.  

This month’s big takeaway: Regularly review your finances to adjust for changes in the economy, market, and your needs, goals, and lifestyle. Also, understand that people in different phases of life have different needs, so taking advice from friends, family members, coworkers, or the internet can be risky without running things past a professional who knows your plan.  

This month, we covered broad and narrow topics — zooming in to discuss whether specific planning vehicles, a Roth 401(k) and a Special Needs Trust, are right for you and your family and zooming out to look at common estate planning mistakes, a midyear financial review checklist, and the Federal Reserve’s actions.  

This month’s big takeaway: Financial planning involves setting a solid financial foundation and keeping a pulse on broad topics (such as the economy) while making granular decisions to build a financial plan that revolves around you. 

In August, we focused on mitigating financial stress by covering our bases and planning ahead. We discussed principles of wise investing, looked ahead to future long-term care needs, addressed the short-term anxiety of equity market volatility, and reviewed how to create a stress-free retirement.  

This month’s big takeaway: Financial planning should create freedom, not stress. If you’re feeling financially strained, consider if you’re abiding by solid investing principles, looking ahead to future needs, consuming balanced, true information about the market or economy, and focusing enough on your biggest goals.

September centered on goals. We covered both long-term goals, such as saving for retirement or college and running a business, and short-term goals, such as making financial moves before the end of the year and staying abreast of investment news. 

This month’s big takeaway: Both short-term and long-term financial goals are necessary for achieving what matters and maintaining a healthy plan and portfolio. Goals are varied, so get advice tailored to your circumstances.

October was a month of returning to the basics and clarifying misconceptions. We reviewed how to make a financial plan and why investing in equities amidst volatility can still be a good idea. 

In addition, we explored some industry alphabet soup: RMDs (Required Minimum Distributions) and IRMAA (the Income-Related Monthly Adjustment Amount). 

We also questioned a common estate planning assumption, asking whether you should treat your kids equally in your will.  

This month’s takeaway: When your finances become overwhelming, get back to the basics. Review the essentials of being a solid investor and planner, and ask questions about what you don’t understand – whether industry jargon or common practices that aren’t right for you.  

In November, we focused on preparing for the end of the year, which meant addressing year-end stressors, holiday saving and spending decisions, and our December forecast. 

One specific event at the end of 2024 was the presidential election. With the inauguration on the horizon, now is a good time to review the six things investors need to know about the election.  

This month’s takeaway: Certain times of year might require more financial focus, perhaps because of deadlines, events, extra spending needs, or traditions. For many people, the end of the year is that time. No matter what season requires you to pay closer attention to your money, be willing to lean in.  

In December, we’ve covered the topics people think about at the close of a year: charitable giving, health insurance (which may involve a Health Savings Account), and what to expect next year.   

This month’s takeaway: Take time at the end of the year to reflect on where you are financially and prepare for the new year. What happened this year, and what do you expect next year? Where would you like to give more, save more, or invest more? What big purchases are coming?  

This year, we offered valuable lessons and resources to help you pursue financial freedom, but without your commitment, focus, and willingness to partner with us, life change would not be possible.  

Looking for more content from 2024?

This year’s most popular articles included:

1. 3 Changes to Retirement Planning in 2024  
2. What to do in Retirement: The First Day, Week, Month, and Year 
3. 5 Reasons to Supplement your Social Security Income  
4. Advisors Reveal the 5 Best Financial Tips for the New Year  
5. Are HSA Contributions Tax Deductible? Answers to 11 Essential HSA Questions 

This year’s most popular videos included: 

1. RMDs 101 – How Does a Required Minimum Distribution Work?  
2. What’s New for Retirement Planning in 2024? 
3. Our December 2024 Equity Market Forecast 
4. Our View of 2024: January Update 
5. 2 Reasons for the Current Market Volatility