As the end of the year approaches, now is an ideal time to review your financial picture and make strategic decisions that can strengthen your long-term wealth plan. Thoughtful year-end planning can help optimize your taxes, protect your assets, and position you for a successful 2026.
Below are some of the most important items to consider:
1. Maximize Retirement Contributions
Year-end is your last opportunity to increase 2025 contributions to employer-sponsored retirement plans such as 401(k)s, 403(b)s, and 457 plans. Increasing contributions—if possible—may enhance long-term retirement savings and offer valuable tax benefits.
Remember: For IRAs and HSAs, contributions for the 2025 tax year can be made until April 15, 2026, but planning early helps avoid last-minute surprises.
2. Evaluate Tax-Loss Harvesting Opportunities
For clients with taxable investment accounts, this may be a good time to review positions with unrealized losses. Tax-loss harvesting can help offset capital gains and potentially reduce your tax liability.
This strategy should be used thoughtfully and in alignment with your long-term investment plan—our team can assist with evaluating whether it makes sense for your situation.
3. Check Beneficiaries and Estate Planning Documents
Life changes—marriages, births, divorces, or losses—may require updates to your beneficiaries or estate documents. Confirming everything is current can prevent future complications and ensure your wishes are honored.
Consider reviewing:
- Beneficiaries on retirement accounts and insurance policies
- Wills and trusts
- Powers of attorney and healthcare directives
4. Consider Charitable Giving Strategies
If charitable giving is part of your financial or tax plan, year-end is a great time to evaluate options such as:
- Donor-Advised Fund contributions
- Qualified Charitable Distributions (QCDs) if you’re 70½ or older
- Appreciated securities donations
These strategies may help support causes you care about while potentially reducing your taxable income.
5. Plan for Estimated Taxes and Withholding Adjustments
If you experienced income changes, capital gains events, or business income this year, reviewing your estimated tax payments and withholding can help avoid underpayment penalties and prepare you for the upcoming tax season.
6. Prepare for Major Goals in the New Year
Whether you’re planning a home purchase, business sale, career transition, or college funding, now is the time to align your wealth plan and cash flow strategy for 2026.
We’re Here to Help
Year-end planning can be complex, but you don’t need to navigate it alone. Our team is available to review your financial plan and help ensure you begin 2026 from a position of strength and clarity.