Navjot Brar | Sep 18 2025 15:00
As the end of the year quickly approaches, it's the perfect time to review your financial plans. We understand that financial to-dos can feel overwhelming, but making proactive decisions now can set you up for success in the new year. Let's explore four impactful strategies to enhance your financial well-being before December 31st.
Strategize Charitable Giving
One efficient way to manage your finances is through charitable giving. Consider donation bunching or setting up a donor-advised fund. If you're over 70½, utilizing a Qualified Charitable Distribution (QCD) from your IRA can meet your charitable goals and fulfill your required minimum distribution (RMD) when you turn 73. Thoughtful planning can make your generosity work harder for you and the charities you support.
Review your investment portfolio
A year-end review helps ensure your investments stay aligned with your risk tolerance and financial objectives. Harvesting capital losses before December 31st can offset taxable gains, potentially reducing your overall tax liability for the year.
Explore Roth IRA Conversions
This may be the year to explore a Roth IRA conversion, especially if you find yourself in a lower tax bracket. Converting now could save you money in the long run, although it's not a one-size-fits-all strategy. Consider your unique financial circumstances and evaluate whether a Roth conversion aligns with your long-term goals.
Maximize Retirement Contributions
Take full advantage of your retirement contributions. For 2025, you can contribute up to $23,500 to your 401(k), with an additional $7,500 catch-up contribution if you're over 50. For traditional or Roth IRAs, the limit is $7,000, with a $1,000 catch-up. Maximizing these contributions now can help reduce your taxable income and build wealth for retirement.
Remember, these are just a few strategies to consider before year-end. Not every tip is right for everyone, so it's wise to consult with a financial professional or certified public accountant (CPA) to ensure these moves align with your personal financial situation. Evaluate your options now or schedule a financial check-in to start the new year on strong financial footing.
