As we approach the end of the year, now is an opportune time to assess your financial strategy and make any necessary adjustments before the new year begins. From maximizing retirement contributions to updating your estate plan, conducting a thorough review can help you avoid potential missed opportunities and position yourself for success in the year ahead.
Here are some key financial planning areas to consider revisiting before year-end:
1. Tax-Advantaged Accounts
If you are able to, contribute the full allowable amount to your retirement accounts—including traditional IRAs, Roth IRAs, 401(k)s, and other employer-sponsored plans—to take advantage of potential tax benefits. Contributing to these accounts will not only allow you to save for your future but can also help reduce your taxable income for the current year.
If you are self-employed, there are options for you, too. Consider exploring accounts such as a SEP IRA or Solo 401(k), which often allow for higher contribution limits and can offer significant tax deferral opportunities.
2. Gifting Strategy
For 2025, the annual gift tax exclusion is $19,000 per individual. This allows you to give up to that amount without incurring gift taxes. Beyond direct cash gifts, you can also contribute to a 529 plan to fund a child or grandchild’s education. While these plans are not tax-deductible, they offer tax-deferred growth and tax-free withdrawals for qualified educational expenses.1,2
Similarly, strategic charitable giving can allow you to support the causes you care about while also potentially benefiting your tax situation. Consider donating appreciated assets to help avoid capital gains taxes, using Qualified Charitable Distributions (QCD) to satisfy Required Minimum Distributions (RMD), or establishing a Donor-Advised Fund (DAF) to claim an immediate tax deduction while you decide which causes you want to support.3
Keep in mind that this information is for educational purposes only and is not intended as specific tax or legal advice. These strategies may not be suitable for everyone, so be sure to consult with a financial or tax professional regarding your individual situation before making any changes to your strategy.
3. Estate Planning
The end of the year is an excellent time to review your estate plan and ensure that it still reflects your current wishes. This might involve updating your will, setting up trusts to help protect your assets and support your loved ones, or changing designated beneficiaries.
Estate planning is a crucial component of a strong financial strategy, helping you minimize potential taxes, simplify the transfer of assets to your loved ones, and ensure your wishes are honored after your passing.
4. Investment Strategy
Take some time to review your financial decisions over the past year and ensure your investment strategy still aligns with your goals. This process can provide a clearer view of your portfolio, allowing you to evaluate performance, rebalance assets if needed, and adjust your risk tolerance to account for any life changes or economic shifts.
Consider working with an advisor to address key questions such as: Have my financial goals changed? Is my portfolio properly diversified? Are there any tax-loss harvesting opportunities? By evaluating your investment strategy proactively, you can help optimize potential returns and remain on track towards your goals in the year ahead.
5. Income Timing
Don’t forget to evaluate the timing of your income, such as bonuses, commissions, and other variable earnings. Understanding when you expect to receive these funds can help you plan your expenses, savings, and investment contributions more effectively. For example, a year-end bonus may provide an opportunity to make additional contributions to your retirement accounts, pay down debt, or build up your emergency fund.
Assessing your income sources can help you align your financial goals with your expected cash flow, preparing you to not only accommodate future planned expenses but also take advantage of potential unforeseen opportunities.
Schedule a Year-End Review
Reviewing your financial plan at the end of each year isn’t just about meeting certain deadlines—it’s an opportunity to make strategic adjustments to help keep you on track towards your long-term goals in the coming year and beyond.
Have questions about your financial strategy or need help getting started? Please don’t hesitate to reach out to schedule a year-end review.
1Frequently asked questions on gift taxes, IRS.gov, 28 Oct. 2025.
2529 Plans: Questions and answers, IRS.gov, 4 Sept. 2025.
3Adams, Hayden and Lund, Caleb. 12 Tax-Smart Charitable Giving Tips for 2025, Schwab.com, 9 Oct. 2025.