5 Financial Moves to Make Before The End Of The Year

As the year winds down, it is the perfect time to get your finances organized and set yourself up for success in the year ahead. Whether you are nearing retirement or just trying to be more intentional with your money, here are five smart steps to consider before December 31:

1. Max Out Retirement Contributions

If you are contributing to a 401(k), 403(b), or IRA, now is the time to review how much you have added this year. Increasing contributions before the end of the year can reduce your taxable income and give your retirement savings a boost.

2. Review Tax Loss Harvesting Opportunities

If you hold investments in a taxable account, see if there are any losses you could realize to offset gains from earlier in the year. This strategy can help lower your tax bill while keeping your portfolio aligned with your goals.

3. Check Your Required Minimum Distributions

If you are age 73 or older, make sure you have taken your required minimum distributions from retirement accounts. Missing them can result in steep IRS penalties, so it is important to stay on top of these deadlines.

4. Revisit Your Spending Plan

The end of the year is a good time to review your budget and make adjustments for the coming year. Look at areas where spending crept up and see where you can redirect funds toward saving or investing.

5. Schedule a Year End Review

Having a clear snapshot of your full financial picture including investments, insurance, and estate planning can help you start the new year with clarity. A quick year end review can uncover financial moves you should make and keep you on track toward your goals.