The final weeks of the year are the perfect time to give your finances a tune-up. Taxes, investments, and savings all come with deadlines — and missing them could mean lost money or missed opportunities. A few strategic adjustments before December 31 can strengthen your portfolio and set you up for a better 2026.

Here are eight key moves worth making while there’s still time:

1. Rebalance and review your overall portfolio

Markets have had a choppy year, and that can throw your portfolio’s mix of stocks, bonds, and cash off target. Review your allocations and rebalance if needed. Trim positions that have grown beyond their intended weight, and consider adding exposure where you’ve fallen short.

It’s also a good time to review dividends, income streams, and total return. If you’re living off investment income, make sure your holdings still align with your risk tolerance and long-term needs.

2. Maximize contributions to tax-advantaged accounts

Before the year closes, confirm you’ve contributed as much as possible to your 401(k) or other employer-sponsored plan. For 2025, the limit is $23,500, with an additional $7,500 for those aged 50 and older — and an enhanced $11,250 “catch-up” contribution for workers aged 60–63. If you’re eligible for an HSA or IRA, remember that contributions for 2025 can be made up to next April’s tax deadline. Still, contributing now through payroll can help you avoid unnecessary FICA taxes.

3. Check your insurance and emergency coverage

Year-end isn’t just about investments — it’s also about protection. Review your life, health, home, and auto insurance policies to make sure coverage still matches your needs. Inflation has raised replacement costs, so outdated limits could leave you exposed.

While you’re at it, make sure your emergency fund is topped off. A well-cushioned savings account can prevent future debt or panic selling in volatile markets.

4. Consider a Roth conversion

If you’ve been thinking about converting a traditional IRA to a Roth IRA, the deadline to count it for 2025 is December 31.
Roth conversions can make sense when market values — or your income — are temporarily lower, since the tax you’ll owe is based on the converted amount. Converting “in kind” allows you to move securities directly, and future growth becomes tax-free. For retirees managing their tax brackets, it’s also a way to diversify future income sources.

5. Make your money work harder through charitable giving

Strategic giving can lower your tax bill while supporting causes you care about. If you itemize deductions, cash gifts to qualified nonprofits are deductible up to 60% of AGI, while appreciated stock or ETF donations are capped at 30% of AGI.
You can also use a donor-advised fund to bunch several years’ worth of giving into a single tax year, capturing a larger deduction now while deciding later where to direct the funds.

6. Don’t forget required minimum distributions (RMDs)

For those 73 or older, the clock is ticking on RMDs from traditional IRAs or other tax-deferred accounts. Missing the year-end deadline can trigger a 25% penalty, though prompt correction reduces it to 10%. Even if you don’t need the cash, you can redirect your RMD to charity through a qualified charitable distribution (QCD) — which counts toward your RMD but isn’t taxable.

7. Use up your flexible spending account (FSA)

A surprising number of savers forget about FSA balances until it’s too late. Unless your employer offers a short grace period or limited rollover, those funds vanish if unused by December 31.

Eligible expenses range from dental and vision care to prescriptions, therapy, and over-the-counter items. A quick online purchase of essentials can prevent losing hundreds of dollars.

8. Harvest your losses before year-end

If some investments are in the red, you may be able to harvest tax losses to offset realized capital gains. The remaining losses can offset up to $3,000 of ordinary income ($1,500 if married filing separately), and unused amounts roll forward indefinitely. Just be mindful of the IRS “wash sale” rule — don’t buy back the same or substantially identical investment within 30 days.

The Bottom Line

Year-end planning isn’t glamorous, but it’s powerful. Whether it’s maximizing savings, cleaning up your portfolio, or locking in tax advantages, the small steps you take today can have a lasting effect on your wealth. Treat it like your annual financial checkup — because the more intentional you are in December, the more confident you’ll feel heading into 2026.