As autumn leaves fall and the holiday season approaches, it is an ideal time to examine your financial health and update your financial plans. Taking stock of your finances in late fall gives you a head start on the coming year, allowing you to make proactive, intentional choices rather than reactive impulse decisions during busy year-end festivities. Fall also offers quiet opportunities to gather with family, reflect on long-term priorities, and make thoughtful choices about your shared future.
Here is a checklist of recommended items to review before year-end:
• Review Realized and Unrealized Portfolio Gains and Losses: Evaluate your investment portfolio; you may be able to offset capital gains with realized losses to reduce your potential income tax liability.
• Consider Year-End Charitable Donations: Making charitable gifts before December 31 supports causes you care about and may help lower your income taxes.
• Maximize 401(k) and Retirement Contributions: Check your year-to-date contributions to your employer-sponsored 401(k) or 403(b) accounts. Catch-up contributions or final payroll adjustments made before year-end can maximize tax-deferred growth and reduce your current-year taxable income.
• Consider a Partial Roth IRA Conversion: Transferring a portion of pretax retirement funds into a Roth IRA may help reduce future income taxes and create a tax-free income source for retirement. Note that Roth conversions are generally taxable in the year of conversion and may increase your current tax liability. Whether a Roth conversion is appropriate depends on your individual financial and tax situation.
• Review Health Care and Insurance Coverage: Since open enrollment is underway, review your current healthcare plan to assess if a different option offers better benefits or lower costs for the coming year.
• Check Cash Reserves and Emergency Funds: Evaluate your liquid cash reserves to ensure you maintain 3 to 6 months of essential living expenses. Keeping your emergency fund in a high-yield money market account lets you earn competitive interest.
• Review Beneficiaries and Refresh Estate Plans: Life changes quickly. Take time to confirm that designated primary and contingent beneficiaries on retirement accounts and life insurance still meet your wishes. Additionally, review core estate documents—such as your will, trust, powers of attorney, and healthcare directives—to ensure named executors and agents are up to date.
• Perform a Credit and Identity Audit: Pull your free credit reports to review all active accounts and check for unauthorized activity or errors. Confirm your credit is frozen at all 3 bureaus – Equifax, Experian, and TransUnion.
• Fund 529 College Savings Plans: Contributing to a 529 plan for children or grandchildren before December 31 allows assets to grow tax-deferred for education expenses, with several states offering state income tax deductions or credits for contributions.
• Fulfill Required Minimum Distributions (RMDs): If you have reached your required RMD age, ensure all mandatory IRA distributions are completed before the December 31 deadline to avoid steep penalty taxes. (Note: As a Longevity client, our team actively monitors your RMD status and will reach out to you directly if any action is needed before year-end.)
• Explore Qualified Charitable Distributions (QCDs): Account holders age 70½ or older can make direct transfers from an IRA to a qualified charity (up to $111,000 per individual for 2026). If you are subject to RMDs, a QCD satisfies your distribution requirement without adding to your adjusted gross income (AGI).
Taking these steps before year-end helps keep your financial plan aligned with your personal goals, providing clearer direction and confidence for the year ahead.
Ready to start planning?
We welcome the opportunity to review your current portfolio and craft a personalized plan for next year. Contact our office today at (925) 818-2389 or click on the “Book a Meeting Today!" button at the top of the page to schedule your year-end financial consultation.
For specific estate planning or tax planning advice, please consult a qualified estate planning attorney or tax advisor/CPA.