Smart Year-End Money Moves to Strengthen Your Financial Future
The end of the year is a natural checkpoint for your finances. It’s a chance to review what’s changed, take advantage of key tax strategies, and make sure your long-term financial plan is still aligned with your goals. At Seaside Wealth Management, these topics come up regularly in our ongoing planning conversations, and we help clients sort through them as part of a thoughtful, year-round process.
Below are some of the most impactful year-end money moves to consider.
1. Maximize Retirement Contributions (For Those Still Working)
This applies only to clients who are currently earning income. If you’re still working, year-end is a good reminder to double-check your 401(k), IRA, or SEP IRA contributions. Ensuring you’re on track can help reduce taxable income, build long-term savings, and take full advantage of yearly IRS limits.
Many of our clients are already retired, so this step may not apply, but for those still working, even small increases now can compound meaningfully over time.
2. Evaluate Tax-Loss Harvesting Opportunities
For clients with taxable investment accounts, year-end is a great time to look at whether any positions are sitting at a loss. Harvesting losses can offset capital gains and potentially reduce your tax bill, turning volatility into a strategic advantage.
At Seaside, this isn’t something we only review in December. We monitor portfolios all year long and harvest losses whenever appropriate. Year-end simply becomes a final quality check rather than a rushed review.
3. Explore Roth Conversion Opportunities
Roth conversions are a powerful tax planning tool. As income becomes clearer toward year-end, it’s easier to determine whether converting part of a traditional IRA to a Roth IRA makes sense. A well-timed conversion can secure tax-free growth for the future and help diversify your retirement income sources.
4. Confirm Required Minimum Distributions (RMDs)
Clients age 73 or older, as well as those with inherited IRAs, must take Required Minimum Distributions before year-end. Missing an RMD can lead to penalties, making this an important step.
At Seaside, Jerri and Tonja stay on top of this for our clients. They track deadlines, calculate RMD amounts, coordinate distributions, and make sure everything runs smoothly. Clients are in excellent hands, they truly pride themselves on making sure nothing slips through the cracks.
5. Make Charitable Giving More Tax-Efficient
If charitable giving is part of your financial life, there are several ways to make those gifts more tax-efficient. Strategies include:
- Donating appreciated securities
- Contributing to a donor-advised fund
- Using Qualified Charitable Distributions (QCDs) from an IRA
Each option has unique tax advantages. The right fit depends on your income, tax bracket, and long-term giving goals.
6. Review Health-Related Accounts (FSA & HSA)
Some accounts, like FSAs, have “use-it-or-lose-it” rules or limited carryovers into the new year. Year-end is a good time to check remaining balances. HSAs don’t expire, but they’re still worth reviewing to confirm contributions align with your plan and healthcare needs.
7. Review Beneficiary Designations and Estate Documents
Beneficiary designations are often overlooked but incredibly important. Year-end is a natural time to review them, along with powers of attorney, wills, and other estate documents. Life changes such as marriages, divorces, and births can make older documents outdated.
8. Consider Annual Gifting Strategies
The annual gift tax exclusion allows individuals to transfer up to a certain amount each year without reducing their lifetime estate exemption. For families who want to support children or grandchildren, this can be an effective year-end tool.
9. Assess Insurance and Risk Management
Insurance needs evolve over time. Reviewing life insurance, disability coverage, long-term care, and property and casualty policies helps ensure they still align with current circumstances, goals, and net worth.
10. Revisit Your Financial Plan and Long-Term Goals
Year-end is often when people naturally reflect on what’s changed and what’s ahead. It’s a great time to revisit your financial plan, adjust assumptions, review spending and saving habits, and make updates based on new goals or life events.
Final Thought
Year-end financial planning is less about checking boxes and more about staying aligned with your long-term goals. These reviews happen naturally throughout the year in our work with clients, and we help navigate them as part of a thoughtful, proactive planning process. If you have questions or want to understand how any of these strategies apply to your situation, we’re always here to talk.
FAQ: Year-End Financial Planning
What are the most important year-end financial planning steps?
Tax-loss harvesting, Roth conversions, RMDs, charitable giving strategies, and reviewing insurance and estate documents are among the most valuable year-end planning steps.
When should I take Required Minimum Distributions?
RMDs must be taken by December 31 each year (with a special exception for your first RMD). Missing the deadline can lead to penalties.
Is tax-loss harvesting worth it?
Yes, when done thoughtfully. It can reduce taxes by offsetting capital gains. Seaside monitors client portfolios year-round for harvesting opportunities.
When is a Roth conversion a good idea?
Roth conversions are often beneficial in years with lower taxable income or before Required Minimum Distributions begin.
This commentary reflects the personal opinions, viewpoints and analyses of the Seaside Wealth Management, Inc. employees providing such comments, and should not be regarded as a description of advisory services provided by Seaside Wealth Management, Inc. or performance returns of any Seaside Wealth Management, Inc. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Seaside Wealth Management, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.