The start of a new year offers a perfect moment to pause and evaluate what truly matters. While you’re planning for the year ahead, here’s a question worth asking: Is your financial advisor actually earning their keep?
This isn’t about being cynical. It’s about ensuring you’re receiving the proactive, value-driven service you’re paying for. Because here’s the truth: strategies like tax loss harvesting and 401(k) optimization can make a meaningful difference in your finances but only if your advisor is rolling up their sleeves and doing the work.
Tax Loss Harvesting: Your Hidden Bonus
Think of tax loss harvesting as financial recycling. When investments dip in value (a normal part of market cycles), a savvy advisor can sell those positions to realize a loss and use it to offset capital gains, which may help reduce your tax bill.
The catch? This isn’t a set-it-and-forget-it strategy. It requires vigilance, market awareness, and proactive management throughout the year—especially during volatile periods.
Ask yourself: When’s the last time your advisor proactively contacted you about tax loss harvesting opportunities? If you can’t remember, that’s your first red flag.
401(k) Reviews: Are You Leaving Money on the Table?
Let’s talk about the easiest money you’ll ever make: your employer’s 401(k) match. It’s literally free money, extra dollars added to your retirement savings based on your employer’s contribution. Yet countless people aren’t maximizing this benefit simply because no one’s paying attention.
Here’s what a great advisor does regularly:
- Reviews your contribution levels to confirm you’re capturing the full match
- Analyzes your fund selections for hidden fees and optimal performance
- Recommends adjusting your allocations as your life circumstances change
- Identifies opportunities to increase contributions during bonus seasons
To put it in perspective: depending on your compensation and plan design, an employer match can represent a substantial annual boost to your retirement savings. For many people, that boost is the equivalent of a family vacation or a significant portion of a child’s college fund- a value that’s easy to overlook, if you’re not taking full advantage of the benefit.
The Daily Latte Factor Meets Reality
You’ve heard it a million times: “Skip the $5 Starbucks, and you’ll be rich!” While there’s truth to mindful spending, it demands a more nuanced approach.
The smarter strategy? Identify the leaks that don’t bring you joy:
- Subscription audit: That gym membership from your New Year’s resolution? The streaming service you forgot you had? Those add up to $50-200 monthly for many households.
- Autopilot spending: Review recurring charges on your credit card. You might be shocked by what you’re paying for without realizing it.
- Strategic swaps: Love your daily coffee ritual? Invest in a quality espresso machine for $400-800. It pays for itself in 4-6 months while preserving your morning joy.
The twist: What if you redirected just one underutilized subscription into your investment account? That $15/month becomes $180/year- and over time, steady contributions like that can grow into meaningful savings when invested.
The Price Is Right: A Financial Reality Check
Let’s play a game. Imagine you’re on “The Price Is Right,” but instead of guessing the cost of a washer-dryer combo, you’re estimating the true impact of your financial decisions:
Showcase #1: The Coffee Conundrum
- Daily $5 coffee × 365 days = $1,825/year
- Illustrative projection: If invested at an assumed 7% annual return over 30 years (pre-tax, no fees deducted, actual results vary widely due to market volatility, inflation, and taxes), this could grow to approximately $174,000.
- Alternative: Buy a $600 espresso machine to potentially save $1,200+/year and invest the difference (hypothetical only, outcomes not guaranteed).
Disclaimer: These are simplified examples for educational purposes; consult a professional for personalized advice.
Showcase #2: The Advisor Activity Assessment
- Proactive tax-loss harvesting, when applicable and appropriately executed, can potentially generate tax savings – often in the range of thousands annually for qualifying clients.
- Optimized 401(k) strategies, such as maximizing employer matches, may unlock additional value, potentially thousands yearly, depending on salary and plan details.
- Total potential value could add up to several thousand dollars annually through such strategies, based on typical scenarios; actual amounts vary by individual circumstances.
Disclaimer: These are simplified examples for educational purposes; consult a professional for personalized advice.
The question: Which showcase delivers better returns—your coffee habit or your advisor’s proactive strategies? If your advisor isn’t delivering Showcase #2, you’re playing the wrong game.
The New Year Challenge: Demand More
This year, give yourself the New Year’s resolution of financial clarity. Here’s your action plan:
1. Schedule an annual review with your advisor and ask:
- “How much did we save through tax loss harvesting last year?”
- “When did you last review my 401(k) allocation and contribution levels?”
- “What proactive strategies have you implemented to reduce my tax burden?”
2. Compare their answers to your spending:
- If your Starbucks habit got more attention last year than your tax strategy, something’s wrong
- If they can’t provide specific dollar amounts for tax savings, they may not be tracking them
3. Audit your own spending:
- Pull up three months of credit card statements
- Highlight every recurring subscription and membership
- Calculate what redirecting unused services into investments could mean for your future
4. Make the tough call:
- If your advisor can’t articulate clear, measurable value they’ve delivered, it might be time to find one who can
- Remember: You’re not paying for a portfolio babysitter, you’re paying for proactive financial optimization
Why This Matters More Than Ever
In a low-fee robo-advisor landscape, human advisors differentiate through proactive, personalized strategies. Tax-loss harvesting, 401(k) optimization, tax planning, and behavioral coaching set exceptional advisors apart from mediocre ones.
Your New Year’s Resolution
In 2026, commit to financial accountability, both for yourself and your advisor. Trim the spending that doesn’t spark joy, maximize the free money your employer offers, and demand that your advisor earn their fee through measurable, proactive strategies.
Because the best gift you can give yourself this year isn’t another gadget or trendy appliance, it’s the peace of mind that comes from knowing every dollar is working as hard as you do.
Ready to take the challenge? Start by scheduling a financial review with a Crux Wealth Advisor. Your future self will thank you, probably while sipping a perfectly crafted espresso from your new home machine.
Crux Wealth Advisors is an investment advisor registered with the Securities and Exchange Commission. Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Securities offered through Arete Wealth Management, LLC, member FINRA and SIPC. The information contained in this material is intended to provide general information about Crux Wealth Advisors and its services. It is not intended to offer investment advice. Investing involves risk. Information regarding investment products and services is provided for informational purposes only. Market data, articles and other content in this material are based on generally available information and are believed to be reliable. Crux Wealth Advisors does not guarantee the accuracy of the information contained in this material. Past performance does not guarantee future results.