With Halloween just around the corner, it may be hard to believe but it’s time to start looking at end of year planning. In lieu of a traditional chart this week, we thought it would be a good idea to remind everyone of some year-end “tricks” that could lead to some “treats” down the road! In actuality, there are no tricks here just good sound financial planning tips as the year winds down, many of which we are actively working on for and with clients as we type this.
Top 10 Financial Planning Tips for Year-End
- Max Out Retirement Accounts: Boost contributions to your 401(k), 403(b), or IRA to lower taxable income before the year closes out. For 2026 the limits are $24,500 (an additional $8,000 if over 50+) for 401(k) and 403(b) contributions, and $7,500 (an additional $1,100 for 50+) for traditional IRA contributions.
- Take Your RMDs: If you are 73 or older, if you haven’t already, withdraw your Required Minimum Distributions (RMDs) to avoid steep IRS penalties.
- Harvest Tax Losses: Sell underperforming investments to offset capital gains and reduce your overall taxable income.
- Review Open Enrollment: Compare health insurance plans and update your elections during workplace open enrollment periods.
- Contribute to an HSA: Max out your Health Savings Account if you have a high-deductible health plan for triple-tax benefits ($4,400 for single, $8,750 for family).
- Use FSA Balances: Check your Flexible Spending Account to use up remaining funds so you do not lose them to “use-it-or-lose-it” rules.
- Evaluate Roth Conversions: Convert traditional IRA funds to a Roth account if you expect to be in a lower tax bracket this year.
- Execute Charitable Giving: Make end-of-year donations, use a donor-advised fund, or make Qualified Charitable Distributions (QCDs).
- Rebalance Your Portfolio: Review your asset allocation to make sure your risk level matches your long-term goals.
- Update Estate & Beneficiaries: Review your wills, powers of attorney, and account beneficiary designations to reflect major life changes.
As noted above, many of these year-end tasks such as RMDs and Rebalancing are well underway in our office, and you may have seen the related activity in your accounts. If you have any questions about any of the above or wonder if you are a candidate, don’t be “scared” to give us a call to discuss!
“This presentation is not an offer or 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, but its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. Fagan portfolio characteristics and holdings are subject to change at any time and are based on a representative portfolio. Holdings and portfolio characteristics of individual client portfolios may differ, sometimes significantly, from those shown. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the securities listed.
Additional information including management fees and expenses is provided on our Form ADV Part 2. The actual return and value of an account fluctuate and, at any time, the account may be worth more or less than the amount invested. Bond Investments are affected by interest rate changes and the credit-worthiness of the issues held in the portfolio. A rise in interest rates will cause a decrease in the value of fixed income positions. Past performance results are not indicative of future results.”
