As the year winds down, many people focus on holiday plans, travel, and family time — but it’s also one of the most important moments to review your finances. This year-end financial checklist highlights the key steps you can take before December 31 to strengthen your financial position and set up a smoother start to 2026.
1. Review Your Investment Portfolio and Rebalance as Needed
Market performance throughout the year can shift your allocations away from your original plan. Rebalancing helps realign your portfolio with your long-term risk tolerance and investment strategy [1].
This is also a smart time to revisit life changes — income shifts, new goals, or major family updates.
2. Maximize Retirement Contributions
Year-end is the deadline for adjusting contributions to most workplace retirement plans, including 401(k) and 403(b) accounts [2]. Increasing contributions can reduce taxable income and boost long-term retirement savings.
Don’t forget about:
- Catch-up contributions for those age 50+ [2]
- Roth conversion opportunities (taxed in the year completed) [3]
3. Consider Tax-Loss Harvesting
If some investments declined this year, you may be able to use realized losses to offset gains and potentially reduce your tax bill [4].
Tax-loss harvesting must be completed by December 31.
4. Double-Check Required Minimum Distributions (RMDs)
If you’re age 73 or older, or you’ve inherited certain accounts, you may have an RMD due before year-end. Failing to take an RMD can result in IRS penalties [5].
Charitably minded retirees may also use a Qualified Charitable Distribution (QCD) from an IRA to satisfy RMDs tax-efficiently [6].
5. Make Any Charitable Gifts Before December 31
For those looking to reduce taxable income or maximize impact, year-end charitable strategies may include:
- Donating appreciated securities
- Using a donor-advised fund
- Making QCDs from IRAs [6]
- Bundling multiple years of gifts into one tax year [7]
These strategies can offer meaningful tax benefits when implemented before the calendar year closes.
6. Check Beneficiaries and Estate Planning Documents
Beneficiary updates on retirement accounts and insurance policies are simple but essential. The end of the year is also a good moment to review estate planning documents such as wills, trusts, and powers of attorney to ensure they still reflect your wishes [8].
7. Evaluate Your Cash Flow and Emergency Savings
It’s easy to lose financial footing during the holidays. Reviewing cash flow, upcoming expenses, and your emergency reserve helps maintain stability going into the new year [9].
Looking Ahead to 2026
January is traditionally a time of fresh starts — but the real foundation is laid in December. By reviewing your accounts, taking advantage of tax opportunities, and aligning your strategy with next year’s goals, you can begin the new year with clarity and momentum. For more seasonal guidance, you may also enjoy our Fall Financial Check-In.
If you’d like help with any of these steps or want a personalized year-end review, we are here to guide you.
Warm regards,
Sage Capital Wealth Partners
Phone: 864-999-4150
Email: admin@sagecapitalwealth.com
Website: www.sagecapitalwealth.com
Sources
- Vanguard — “Rebalancing Your Portfolio” https://investor.vanguard.com/investor-resources-education/portfolio-management/rebalancing-your-portfolio
- IRS — Retirement Topics: Contributions https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-contributions
- IRS — IRA Contribution Limits https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
- Charles Schwab — “Understanding Tax-Loss Harvesting” https://www.schwab.com/learn/story/tax-loss-harvesting
- IRS — Required Minimum Distributions (RMDs) https://www.irs.gov/retirement-plans/required-minimum-distributions-rmds
- IRS — Charitable Distributions from IRAs (QCDs) https://www.irs.gov/retirement-plans/charitable-contributions-from-iras
- Fidelity Charitable — “Charitable Bunching Strategy” https://www.fidelitycharitable.org/guidance/philanthropy/charitable-bunching-strategy.html
- American Bar Association — Estate Planning Basics https://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/
- CFPB — “Emergency Savings Planning Guide” https://www.consumerfinance.gov/start-small-save-up/
