Year-End Financial Moves: Smart Strategies for 2025 and Beyond

As 2025 comes to an end, it’s a great opportunity for investors and families to review their finances and make thoughtful decisions about their wealth. With markets shifting, new tax rules emerging, and financial technology evolving quickly, year-end planning is key to reaching your goals and setting up your investments for success in the coming year.

Tax Planning Strategies

• Take advantage of higher contribution limits by maximizing your deposits into retirement accounts—like 401(k)s, IRAs, and Health Savings Accounts (HSAs). Doing so can help you reduce your tax bill while saving more for the future.
• If you expect your income to rise or want to lower future Required Minimum Distributions (RMDs), consider Roth IRA conversions or "backdoor Roth" strategies while current tax rates are still favorable.
• Use year-end tax loss harvesting—selling investments that have lost value—to offset gains and lower your taxable income for 2025.
• Consider different ways to give to charity, like donor-advised funds or donating stocks that have increased in value. These strategies can help you make a bigger impact while also reducing your taxes.
• Review any new tax rules or deductions for the upcoming year, and double-check that you’ve taken advantage of all available deductions, credits, or special catch-up contributions.

Portfolio Rebalancing

• Check if your current mix of investments still matches your goals, risk tolerance, and view of the market. If recent market changes have thrown things off, consider rebalancing your portfolio to get back on track.
• Look at how all your investments—stocks, bonds, real assets, and alternatives—have performed this year. Think about how recent ups and downs in the market might shape your plans for 2026.
• Make sure you’re well-diversified by checking how much you have invested in different sectors, regions, and types of investments.
• If you’re getting closer to retirement or your financial priorities have changed, start adjusting your investments to better fit your income needs and comfort with risk.

Artificial Intelligence in Wealth Management

• AI-powered tools are changing the way advisors and investors manage portfolios. These technologies make it possible to quickly analyze market risks, spot connections between assets, and find new investment opportunities.
• Automated strategies can handle routine tasks like rebalancing your portfolio, harvesting tax losses, and making adjustments as the economy changes.
• Wealth managers are using AI to offer more personalized advice, provide real-time insights, and help clients manage risk more proactively.
• As 2026 approaches, think about how adding AI tools to your approach could help you improve your strategy, work more efficiently, and stay ahead in a fast-changing financial world.

Sources

• https://www.key.com/wealth/our-insights/articles/2025-year-end-planning-individuals.html
• https://www.edwardjones.com/us-en/market-news-insights/guidance-perspective/year-end-checklist
• https://www.withum.com/resources/year-end-planning-checklist-for-your-wealth-management/
• https://www.bairdwealth.com/insights/baird-digest/articles/2025/10/wrapping-up-2025-your-year-end-planning-checklist/
• https://www.wealthmanagement.com/estate-planning/five-year-end-tax-planning-strategies-to-review-with-clients
• https://www.empaxis.com/blog/wealth-management-trends

Disclosure

This article is for informational purposes only and does not constitute tax, legal, or investment advice. Please consult your financial advisor, accountant, or attorney before taking any action. The author does not hold positions in referenced companies or products at the time of writing.

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