As the year winds down, now is the perfect time to take a step back and review your financial picture. For high-income professionals, business owners, and investors, December offers a unique opportunity to make strategic moves that can enhance your portfolio, optimize your taxes, and set you up for a strong 2026. Here’s a checklist of smart actions to consider before December 31.

  1. Review Your Financial Goals

Before the new year begins, take a look at the goals you set for 2025. Did you achieve them? Are there adjustments needed for the remainder of the year?

  • Assess your progress toward savings, investment, and retirement targets.
  • Update your plan to reflect any changes in your personal or professional life.
  1. Optimize Tax Strategies

Year-end is a critical time to make tax-efficient moves. Consider:

  • Tax-loss harvesting: Selling underperforming investments to offset gains.
  • Maxing out retirement contributions: Ensure you’ve contributed to 401(k)s, IRAs, or other retirement accounts.
  • Charitable giving: Donations made by December 31 can qualify for tax deductions.
  • Gifting strategies: Consider gifting appreciated assets or using annual exclusion gifts to reduce estate tax liability.
  1. Rebalance Your Portfolio

Market fluctuations can shift your asset allocation over the year. Rebalancing helps maintain your desired risk level and can improve long-term performance.

  • Review stock, bond, and alternative investment allocations.
  • Make adjustments to align with your risk tolerance and financial objectives.
  1. Review Your Estate and Insurance Plans

Year-end is a great time to ensure your legacy and protections are in order.

  • Check that beneficiary designations are up to date.
  • Review life insurance, disability insurance, and long-term care policies.
  • Update estate plans as needed to reflect any life changes.
  1. Plan for Business Owners

If you own a business, year-end planning can have a significant impact on both personal and business finances.

  • Review cash flow and outstanding invoices.
  • Maximize retirement plan contributions for yourself and employees.
  • Consider tax strategies such as deferring income or accelerating expenses.
  1. Prepare for 2026

Looking ahead ensures you start the new year with a clear strategy.

  • Set realistic financial goals for 2026.
  • Consider potential market trends and economic conditions that could affect your investments.
  • Schedule a meeting with your financial advisor to align your plan with your goals.

Closing Thoughts:
Year-end planning is more than just crunching numbers — it’s about creating a roadmap for financial success and peace of mind. By taking these steps before December 31, you can maximize tax advantages, strengthen your portfolio, and step into the new year confident in your financial strategy.