As the year winds down, now is the time to take thoughtful and strategic action to preserve your wealth, optimize your tax exposure, and build your legacy. The weeks leading into year-end often present valuable planning opportunities that disappear once the calendar turns.
Whether your focus is protecting your financial foundation, positioning assets for long-term growth, or giving with intention, the decisions made in November and December can have significant long-term impact.
Over the coming weeks, we help our planning clients evaluate and implement strategic year-end planning in the areas of investment allocation, tax strategies, charitable giving, estate preparation, retirement planning, and advisor coordination—with the goal of finishing 2025 strong and entering 2026 with clarity, purpose, and momentum.
Use these concepts for your Financial and Life Year-End Tune-Up
🔹 Capture available tax benefits
🔹 Realign and rebalance your investments
🔹 Maximize contribution and distribution strategies
🔹 Revisit charitable and estate intentions
🔹 Coordinate your professional advisory team
🔹 Enter the new year confident and intentional
1. Align Your Investments with Your Future
Best year-end investment strategies
- Rebalance your portfolio to lock in gains, harvest losses, and maintain your desired risk profile.
- Review concentrated positions to help manage volatility and promote long-term growth.
- Evaluate private investments and alternatives, such as real estate, private equity, and opportunity zones, for performance and potential taxation.
- Plan around early 2026 cash needs to ensure liquidity is properly positioned.
2. Optimize Your Tax Strategy Before December 31
How can I reduce taxes before the new year?
- Adjust timing of income and deductions based on tax bracket projections, IRMAA thresholds, or Roth conversion strategy.
- Harvest tax losses to help offset gains and manage Net Investment Income Tax exposure.
- Review business entity structures for tax efficiency.
- Evaluate state residency planning, especially when navigating relocation.
- Consider Roth IRA conversions to reduce future RMDs and allow tax-free compounding.
3. Give with Purpose
What is the smartest way to give to charity at year-end?
- Use Donor-Advised Funds (DAFs) funded with appreciated assets.
- If over age 70½, consider Qualified Charitable Distributions (QCDs) directly from your IRA instead of donating from cash—before committing 2026 charitable contributions.
- Explore charitable trusts (CRTs/CLTs) to support multi-year income distribution and legacy planning.
- Donate appreciated securities to potentially avoid capital gains.
- Review your philanthropic mission to ensure gifting aligns with your broader legacy vision.
4. Build and Protect Your Legacy
Which estate documents should be updated each year?
- Ensure wills, trusts, powers of attorney, and healthcare directives reflect current intentions.
- Review beneficiary designations, which override legal documents if inconsistent.
- Make strategic gifts ($19,000 annual exclusion per recipient for 2025).
- Consider intrafamily loans or GRATs to transfer wealth efficiently.
- Fund 529 or educational accounts to support family goals while reducing estate value.
Host a family financial governance meeting to communicate legacy values and stewardship expectations.
5. Coordinate Your Professional Team
When should I meet with my advisor before year-end?
- Complete a balance sheet review, including real estate, trust accounts, business assets, and illiquid holdings.
- Confirm tax, legal, and investment strategies are aligned and implemented before deadlines.
- Ensure updated titling and beneficiary designations are coordinated across your estate and tax plan.
- Establish a 2026 planning roadmap to continue progress into the new year
Frequently Asked Year-End Questions
These are some of the most searched financial questions around year-end planning. Consider them when reviewing your strategy:
- What are the top financial moves to make before December 31?
Rebalance investments, harvest tax losses, complete Roth conversions, finalize charitable contributions, meet RMD requirements, and schedule planning meetings. - Should I rebalance my portfolio before or after the end of the year?
Typically before year-end to lock in gains and address tax implications. Timing can depend on income strategy—consult your advisor. - What is the deadline for 2025 Roth conversions?
Conversions must be completed by December 31 to count for the current tax year. - What is a QCD and how can it help reduce taxes?
A Qualified Charitable Distribution allows individuals aged 70½+ to send up to $100,000 directly from an IRA to charity, potentially reducing taxable income while satisfying part of RMDs. - How do I make sure my estate plan is current?
Review documents annually and update beneficiary designations, account titling, and asset coordination with your legal and financial team.
Make Smart Moves Now for a Strong Start to 2026
By intentionally focusing on how you preserve, grow, and give before December 31, you align your financial strategies with your long-term goals and values. These actions—taken proactively—can build lasting impact across generations and position you for success in the year ahead.
Converting from a traditional IRA to a Roth IRA is a taxable event.
A Roth IRA offers tax free withdrawals on taxable contributions.
To qualify for the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first-time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.
Cetera Wealth Services, LLC exclusively provides investment products and services through its representatives. Although Cetera does not provide tax or legal advice, or supervise tax, accounting or legal services, Cetera representatives may offer these services through their independent outside business. This information is not intended as tax or legal advice.