As summer winds down and the holidays come into view, it’s a great moment to pause, reflect, and take some practical steps to wrap up 2025 on a high note. A little attention now can help you feel more in control—and less stressed—about your finances as the year ends.
1. Review Your Budget and Revisit Your Goals
Set aside a few minutes to look over your 2025 budget. Think about where your money went this year—no judgment, just honest reflection. Are there places you could shift your spending to make a bigger difference? Handy budgeting apps can help you spot patterns and set goals that really fit your life, whether you’re focused on paying off debt, boosting your emergency fund, or putting more into investments.
2. Max Out Retirement and Savings Contributions
For 2025, the IRS has raised the contribution limits on retirement accounts like 401(k)s and IRAs. If you’re able, try to bump up your contributions—it can help lower your taxable income and give your savings a healthy boost for the future. If you’re over 50, don’t forget about catch-up contributions. And while you’re at it, check your Health Savings Account or Flexible Spending Account for any extra ways to save.
3. Assess Your Tax Moves—Big Changes Ahead in 2026
Big changes are coming to the tax code in 2026, so 2025 is a unique chance to make the most of current rules and potentially save more on taxes:
- If you’re charitably inclined, you might consider ‘bunching’ your donations—using donor-advised funds to combine a few years’ worth of gifts. This can help you qualify for a larger deduction while the current rules are still in effect.
- If you have investments, investigate tax-loss harvesting—selling some investments that lost value to offset gains elsewhere. Or, if you think you’ll be in a higher tax bracket next year, it might make sense to sell appreciated assets now.
- Take a moment to double-check the new 2025 income limits for tax brackets and deductions. Adjust your plans as needed to make the most of your situation.
4. Rebalance and Refresh Your Investment Portfolio
The markets have been on the move this year, and your investment mix might be a little off track. Taking time to rebalance before year-end helps you stay in line with your comfort zone and goals. It might also open fresh opportunities in strong sectors or help you build a bit more resilience for whatever comes next.
5. Beef Up Your Emergency Fund
Life is unpredictable, and the economy can be too. Try to keep at least three to six months’ worth of living expenses tucked away. It’s a simple step that gives you peace of mind—and can really help if life throws you a curveball.
6. Review Key Documents and Insurance
Have you had any big life changes this year—like getting married, divorced, welcoming a new child, or buying a home? Now’s a smart time to make sure your beneficiary designations, will, power of attorney, and insurance policies are all up to date.
7. Think Strategically About Charitable Giving
Charitable giving isn’t just a holiday tradition—it can also be a smart financial move. If you’re thinking about giving, you might donate appreciated investments or group several years’ gifts into 2025 to make the most of your tax deduction, especially with the rules set to change next year.
Disclaimer:
This article is for informational purposes only and does not constitute financial, tax, or investment advice. Laws and market conditions can change, and not every strategy applies to every individual. Please consult a qualified financial or tax advisor regarding your specific circumstances before making any decisions. This material is not intended to serve as personalized tax, legal and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Duncan Williams Asset Management is not a legal or accounting firm. Please consult with your legal or tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.
Sources
- https://www.midwestone.bank/blog/post/2025-financial-checklist-7-ways-to-prepare-for-the-new-year
- https://www.jpmorgan.com/insights/wealth-planning/taxes/7-strategies-to-consider-before-year-end
- https://www.morganstanley.com/articles/financial-planning-new-year-financial-resolutions
- https://www.securian.com/insights-tools/articles/year-end-financial-checklist.html
- https://www.onedigital.com/blog/starting-the-year-strong/
- https://www.fidelity.com/learning-center/personal-finance/tax-moves
- https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025
- https://www.troweprice.com/personal-investing/resources/insights/how-improve-your-investment-returns-through-tax-loss-harvesting.html
- https://www.kiplinger.com/taxes/capital-gains-tax/602224/capital-gains-tax-rates
- https://www.joneswalker.com/en/insights/blogs/perspectives/2025-is-now-a-strategic-year-for-charitable-giving.html
- https://www.fidelitycharitable.org/guidance/charitable-tax-strategies.html
- https://www.manning-napier.com/insights/6-ways-to-keep-your-financial-plan-on-track-this-summer
- https://www.privatebank.bankofamerica.com/articles/how-to-build-investment-portfolio.html
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