9 Things You MUST Do Before 2027 (Financially)

Overview

Humphrey Yang outlines nine year-end financial actions intended to help viewers enter 2027 in better financial shape. The advice covers cash and debt management, tax planning, employer benefits, spending, retirement contributions, automation, and goal-setting.

Nine Recommended Actions

1. Take a year-end financial snapshot

• List your cash, debts, assets, and net worth. Compare your net worth with last year’s to establish a baseline for wealth growth.
• The video says the Fed raised rates to 3.75%–4%, with high-yield savings accounts (HYSAs) paying around 3.75%, versus a 0.38% national average savings-account rate.
• Keep cash for an emergency fund and near-term goals in a HYSA. Treat it as a “storage” reserve rather than an investment, and invest cash beyond those needs.
• List liabilities—including credit cards, car loans, personal loans, mortgages, and student loans—and prioritize high-interest debt.

2. Review new tax deductions

The video describes new deductions that it says generally run through 2028:

• Cash charitable contributions, even for standard-deduction filers: up to $1,000 single / $2,000 married filing jointly.
• For people 65 and older: up to $6,000 per person, subject to income limits and phaseout.
• Tip income: up to $25,000; overtime pay: up to $12,500, or $25,000 married filing jointly.
• The state and local tax (SALT) deduction cap: $40,400 for 2026, with a phaseout above $505,000 of income.

The video suggests consulting a CPA for higher-income or complex tax situations.

3. Capture employer benefits and other “free money”

• Contribute enough to a 401(k) to receive the full employer match. For example, a 100% match on contributions up to 4% of a $100,000 salary is $4,000.
• Check eligibility for the newly described Trump accounts:
  • The Treasury contribution is $1,000 per eligible child born in 2025–2028, with enrollment via IRS Form 4547.
  • The video says families may contribute up to $5,000 per child annually, and employers may contribute up to $2,500.
• Consider an employer employee stock purchase plan (ESPP). Some plans offer a discount—the video gives 15% as an example—but review holding periods, tax treatment, and concentration risk before accumulating employer stock.

4. Consider tax-gain or tax-loss harvesting

• The video gives 2026 long-term capital-gains thresholds of $49,450 single / $98,900 married filing jointly for the 0% federal rate. Eligible investors may realize gains within available room and repurchase the investment to raise its cost basis. The video notes that the wash-sale rule does not apply to gains.
• State taxes may still apply, and realized gains can affect income-based benefits or deductions.
• For investors above the 0% threshold, the video discusses selling losing positions to offset gains. It says net losses can offset up to $3,000 of ordinary income per year, with excess carried forward.
• The wash-sale rule applies to loss sales: avoid buying the same or a substantially similar investment within 30 days before or after the sale.

These are tax-sensitive strategies; the video advises running the numbers for your circumstances.

5. Renegotiate recurring bills

• Review insurance, internet, phone, cable, and credit-card costs—particularly if they have not been renegotiated in a year.
• Request promotional pricing, compare insurance quotes, or ask a card issuer for a lower APR.
• The video estimates that saving $100 per month would free up $1,200 per year.

6. Audit the three largest spending categories

• Housing, transportation, and food often represent 60%–70% of spending.
• For example, lowering rent from $3,000 to $2,500 per month saves $6,000 a year, before considering lifestyle and commute tradeoffs.
• Review the past three months of bank or credit-card statements and identify recurring charges and subscriptions. The speaker suggests using an AI tool such as ChatGPT or Claude for categorization.

7. Maximize retirement contributions and understand the catch-up rule

• The video lists 2026 limits of $24,500 for 401(k) contributions, plus an $8,000 catch-up for people over 50. For ages 60–63, it cites an $11,250 “super catch-up,” for a possible total of $35,750.
• 401(k) contributions must come from a 2026 paycheck, so the deadline is the final paycheck of the year. The video says 2026 IRA contributions can be made through the April 2027 tax-filing deadline and cites a $7,500 IRA limit.
• The video says workers aged 50 or older whose prior-year job income exceeded about $150,000 must make catch-up contributions as Roth contributions rather than choosing pre-tax treatment.
• It also cautions that high earners may be unable to make catch-up contributions if their employer plan lacks a Roth option.

8. Automate saving and investing

• Split direct deposits so a set amount goes automatically to a HYSA. You can use separate savings buckets for different goals.
• Automate contributions to a 401(k), Roth IRA, or taxable brokerage account, and schedule recurring purchases of index funds or stocks.
• The speaker prefers monthly dollar-cost averaging, while noting that contribution frequency is a personal choice.
• If you have self-employment or side income, reserve money for taxes. The speaker says he sets aside 35% of his income because he lives in California, and recommends automating this process.

9. Choose one or two achievable financial goals for 2027

Choose goals that are meaningful and realistically attainable. The speaker suggests aiming for a high likelihood of success rather than setting too many or overly ambitious targets.

Examples include:

• Opening a Roth IRA or 529 plan
• Getting the full 401(k) match
• Increasing emergency savings by one to two months
• Paying off debt
• Increasing investment contributions
• Meeting with an advisor
• Boosting income

Make each goal specific and time-bound. For example: pay off $4,000 of credit-card debt by August 2027 by earning side income and paying an extra $500 per month.

Assets, Accounts, and Instruments Mentioned

• Cash and high-yield savings accounts
• Stocks, including employer stock through ESPPs
• Index funds
• 401(k), traditional and Roth contributions, IRAs, Roth IRAs, taxable brokerage accounts, and 529 plans
• Trump accounts for children
• Credit cards, mortgages, car loans, personal loans, and student loans
• Insurance products and a Revolut Visa prepaid card

No specific public stock tickers, ETFs, bonds, or cryptocurrencies are named.

Disclosures and Cautions

• The video includes a sponsorship segment for Revolut and Visa. It claims the prepaid card has no monthly fee, supports 25+ currencies, and has no foreign-exchange fees during market hours. It also mentions a potential $20 new-user bonus through the presenter’s link. Terms and eligibility apply.
• The video description says Humphrey Yang is no longer a current financial advisor, that investment commentary reflects his opinions, and that some links are affiliate links.
• Tax thresholds and rules are presented as applying to 2026. Viewers should verify eligibility and current rules, including state tax effects and plan terms.
• The transcript does not contain a general spoken “not financial advice” disclaimer.

Presenter and sources: Humphrey Yang. Sources and institutions referenced in the video include the Federal Reserve, the IRS, employers and employer benefit plans, and the Revolut/Visa sponsor segment.