February is often seen as the month of love, filled with grand romantic gestures, lavish gifts, flowers, chocolates and an expensive night out. But there’s another kind of love that deserves our attention: the love we show ourselves, our families, and our financial future through smart financial planning.
Now, I know what you’re thinking—financial planning doesn’t seem as exciting as a night out or a thoughtful gift. But trust me, making informed decisions about your assets is one of the best gifts you can give yourself and your loved ones, with benefits that last well beyond Valentine’s Day.
This week, we explore seven financial strategies that not only secure your family’s future, but also create opportunities for generosity and financial stability. Next week, we’ll be back with seven more ways to strengthen your financial well-being in 2025.
1 | Make a Qualified Charitable Distribution (QCD)
If you’re taking required minimum distributions that you don’t need, consider making a Qualified Charitable Distribution directly to a charity you care about. This strategy fulfills your required minimum distributions while excluding the amount you distribute from taxable income. By giving back to meaningful causes, you can make a positive impact while enjoying tax benefits—a true win-win. In 2025, you can give up to $108,000 in a Qualified Charitable Distribution.
2 | Front-load Your 401(k) Contributions
Show love to your future self by maximizing your 401(k) contributions earlier in the year instead of spreading them out over 12 months. The 2025 contribution limit is $23,500, and by contributing earlier in the year and front-loading your contributions your investments will have more time to grow, increasing your long-term financial security.
3 | Set Up an IRA for a Child
Do you want to teach your children financial responsibility while reaping tax advantages? If your child earns income from babysitting, part-time work, or assisting in your business, consider opening an IRA in their name and having them contribute a percentage toward their IRA. By teaching them this responsibility early, you’re setting them up for long-term financial success while reinforcing positive money habits.
According to U.S. Bank, “most people work 30 or 40 years until they retire, kids who open a Roth IRA could benefit from 50 years or more of tax-free growth due to compound growth. As a hypothetical example, just one $7,000 deposit into a Roth IRA for kids could be worth over $190,000 after 50 years and more than $375,000 in 60 years, assuming a 7% annual return. If the child continues to contribute $7,000 a year, they could have more than $3 million after 50 years and more than $6 million in 60 years, assuming the same rate of return.”
4 | Make Donations During Spring Cleaning
As you declutter your home, consider donating gently used items to charity. Whether it’s clothing, books, or household items, your donations can benefit others while providing you with a potential tax deduction. Be sure to keep records of your contributions so you can maximize your deductions on your 2025 tax return.
5 | Give the Gift of Appreciated Stock Shares
Instead of selling appreciated stock and incurring capital gains tax, consider donating it directly to a charity or a loved one’s favorite nonprofit. This strategy allows you to support meaningful causes while minimizing your taxable income—another great way to spread love while being financially savvy.
6 | Establish a 529 College Plan
Invest in the educational future of your loved ones by contributing to a 529 college savings plan. While contributions aren’t tax-deductible at the federal level, they grow tax-free and can be withdrawn tax-free when used for qualified educational expenses such as tuition, books, and housing. Additionally, proper estate planning can help maximize FAFSA financial aid eligibility. Learn more about strategies to maximize financial aid: Estate Planning Strategies for FAFSA.
7 | Make a Roth Conversion
Consider converting a traditional IRA into a Roth IRA, especially if your traditional IRA has decreased in value. A Roth conversion allows your retirement funds to grow tax-free, reducing your tax liability in retirement. This proactive step helps secure your financial freedom in your later years.
As a result of the SECURE Act, it is always our recommendation to begin liquidating your IRA and making a Roth converstion as early as possible, if feasible, to reduce the burden on your beneficiaries. In retirement, you may strategically make a conversion each year to keep your family in the same tax bracket that you are currently in, to maximize the amount of your conversion, while minimizing the tax effects over time. The reason is that while you are in retirement you may be paying a 22% – 24% tax rate in 2025, but when your children inherit those funds in their highest earning years, they may end up paying 32% – 35% when adding the required withdrawals to liquidate your IRA within 10 years, on top of their existing household income.
Let Us Help You Show Your Finances Some Love
February is a time to celebrate love—not just in relationships but in how we take care of ourselves, our families, and our financial future. Thoughtful financial planning ensures stability, security, and generosity for years to come.
Not sure where to start? Family Wealth & Legacy Legal Solutions (FWLLS) is here to help. We guide individuals and families through estate planning and wealth preservation strategies tailored to their needs. Schedule a complimentary 15-minute consultation today to begin your journey toward financial confidence: Schedule Here.
For more financial planning insights, visit Forbes Finance Council, a trusted resource for expert advice on wealth-building strategies.
Learn more about how estate planning can secure your legacy and provide peace of mind: FWLLS Estate Planning.
This article is a service of Family Wealth & Legacy Legal Solutions (FWLLS). At FWLLS, we do not just draft documents; we ensure you make educated, informed and empowered decisions for yourself and the people you love. That’s why we offer a Family Wealth & Legacy Strategy Session™, during which you will get educated and begin to prepare to avoid life’s most common legal problems and get a plan in place to make the best possible choices for the people you love. You can begin by calling our office today to schedule a Family Wealth & Legacy Strategy Session and mention this article to find out how to get this $900 session at a significantly discounted rate, or even for free.