Have there been any significant changes in your life in 2025? Perhaps a career change, shift in family dynamics, or a new personal milestone? Such events can all have a significant impact on your financial situation, so you may want to consider if any adjustments should be made to your current strategy.
Even if this past year has been relatively uneventful, reassessing your financial plan before year-end can help ensure you remain on track to meet your goals in 2026. Here are five key questions to get you started:
Are you leveraging tax-loss harvesting?
Tax-loss harvesting is the practice of taking capital losses (selling securities worth less than what you first paid for them) to help offset your capital gains on the year to mitigate your overall tax burden. If you’re considering this move, be sure to consult a tax professional who can help you assess the potential benefits and ensure it is executed properly.
You may even be able to take this a step further. Consider that up to $3,000 of capital losses, in excess of capital gains, can be deducted from ordinary income. Any remaining capital losses above that amount can be carried forward to offset capital gains in upcoming years.1
Should you itemize your deductions?
You may just want to take the standard deduction for the 2025 tax year, which has risen to $15,750 for single individuals and $31,500 for joint filers. However, if you think it might be better to itemize deductions this year, now would be a good time to start gathering receipts and organizing any necessary paperwork you may need.2
Itemizing deductions can help reduce your taxable income if your eligible expenses, such as medical costs, mortgage interest, or charitable donations, exceed the standard deduction amount, allowing you to maximize your tax savings on the year.3
Have you reviewed your withholding?
Review the year-to-date tax withholding on your income. This amount will determine whether you will owe money or receive a refund when filing next spring. If you have withheld too little on your W-4, you could face an unexpected tax bill and potential penalties. On the other hand, withholding too much might mean missing out on the ability to use those funds throughout the year.
To assess whether an adjustment may be needed, speak with your tax professional or use the IRS Tax Withholding Estimator to ensure your withholding amount aligns with your current financial goals and tax obligations.
Do you have a gifting strategy?
Are you thinking of gifting this year? How about donating to a qualified charity or non-profit organization? For many, gifting wealth can provide personal gratification by being able to support loved ones or causes close to their heart, but it may also offer potential financial benefits as well.
Gifts to charities that you make throughout the year may qualify as tax deductions, which can help reduce your taxable income and potentially minimize future estate taxes. Keep in mind that for some gifts you may be required to itemize your deductions, so consult with your advisor or tax professional to help optimize your tax plan based on your gifting strategy.4
Does your estate plan need updating?
While we’re on the topic of year-end moves, now is also a great opportunity to review your estate plan. After all, estate and financial planning are often directly intertwined. Take this time to ensure everything is in order; your future self and your loved ones will thank you.
Start by checking your beneficiary designations. If you haven’t reviewed them for some time, confirm that your assets are set up to go to your preferred recipients. Outdated designations could lead to unintended outcomes, regardless of what is outlined in your will. While you’re at it, review your will as well to ensure it remains valid and up to date with your wishes. This can provide much-needed clarity for your loved ones in the event of your passing and see that your estate is handled as intended.
Be Proactive
Don’t let the new year sneak up on you, take the initiative to review your financial strategy now and make adjustments as needed. Proactive financial planning, tax planning, and estate planning can improve both your short- and long-term financial situation and help set you up for success in the year to come.
Feel free to reach out if you have questions about your current financial strategy or would like to schedule a year-end review.
1IRS.gov, September 12, 2025. “Topic no. 409, Capital gains and losses”
2IRS.gov, September 10, 2025. “How to update withholding to account for tax law changes for 2025”
3For informational purposes only and not a replacement for real-life advice. Please consult your tax professional before modifying your tax strategy.
4IRS.gov, April 2, 2025. “About Publication 526, Charitable Contributions”