4 Key Year-End Strategies for Your Financial Planning

 

The kids are back to school, the temperatures are dropping and plans are being made to close out 2025. As the year swiftly approaches its end, it's important to take control of your financial future. Although year-end financial preparations might seem daunting, taking proactive steps now can bring a sense of empowerment. This article presents four actionable strategies to help enhance your financial well-being before the year wraps up.

Maximize Retirement Contributions

One key move is to consider maximizing your retirement contributions. For 2025, the contribution limits have been set at $23,500 for 401(k)s, with an additional $7,500 catch-up for those over 50. Similarly, traditional and Roth IRAs have a limit of $7,000, with a $1,000 catch-up for individuals over 50. Seizing these opportunities now could reduce your taxable income while building a solid nest egg for the future.

Fund Your HSA

Contributing to a Health Savings Account (HSA) is another powerful strategy. In 2025, individuals can contribute up to $4,300, while families can contribute up to $8,550. HSAs offer triple tax benefits: contributions reduce your taxable income, grow tax-free, and withdrawals for qualifying medical expenses are tax-free. They serve as excellent tools for meeting both short-term and long-term financial goals.

Strategize Charitable Giving

Generous giving can also be tactically advantageous if correctly planned. Consider strategies such as donation bunching or utilizing a donor-advised fund. For those over the age of 70½, a Qualified Charitable Distribution (QCD) from an IRA is a viable option as it can also count towards your required minimum distribution (which starts at age 73). Aptly planning your charitable giving can both enhance your impact and optimize your tax situation.

Explore Roth IRA Conversions

Another tactic is to explore the possibility of Roth IRA conversions. When converting, you’ll pay taxes at current income levels to enjoy tax-free withdrawals in retirement. This year might be an opportune moment if you find yourself in a lower tax bracket. However, keep in mind that Roth conversions aren’t suitable for everyone and should be assessed annually based on individual circumstances.

It’s truly remarkable what a little planning can do for your financial future. While not all strategies will be suitable for every individual, consulting with a financial professional can yield personalized advice. Taking these steps now ensures a more secure and prosperous year ahead. Deliberately evaluate your options or schedule a financial check-in today.

 

 

 

This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third-party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way whatsoever. This presentation may not be construed as investment, tax or legal advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and is subject to change without notice.

 

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