Moves to Make Before Year's End

Before you close the book on 2025, give yourself a head start on 2026. A year-end review of your portfolio and insurance policies can help ensure your investments are in line with your goals and your risks are properly covered for the new year.

Rebalance Investments

You chose your investments based on your risk tolerance and time frame. But market ups and downs can change your asset allocation and risk exposure. Rebalancing your portfolio at the end of the year can return your asset mix to your desired allocation.

Review Your Plan Contributions

Make sure you're contributing as much as possible to your company's retirement plan, or at least enough to take full advantage of any employer matching funds. Then review how your funds are invested. Swap funds if necessary to align with your goals.

Consider Losses

Selling individual stocks that have lost value since you acquired them allows you to offset taxable capital gains on stocks you've sold at a profit and up to $3,000 ($1,500 married, filing separately) of ordinary income in the year of the sale. Any additional losses can be carried over for deduction in future years. Keep in mind that the wash-sale rule prevents you from deducting losses if you purchase the same or similar securities within 30 days of the sale.

Be Charitable

Consider making next year's charitable contributions before year's end to get a charitable deduction on this year's tax return. Gifts charged to a credit card by December 31 will qualify for the deduction, and you won't be billed until January.

Bunch Expenses

Moving elective medical and dental procedures to this year may allow you to exceed the adjusted gross income (AGI) threshold for deduction on your 2025 tax return. To be deductible, medical expenses must exceed 7.5% of your adjusted gross income.

Take Your RMD

If you were born between 1951 and 1959 you must begin taking required Minimum Distributions (RMD) from your qualified retirement accounts at age 73. If you were born in 1960 or later, you do not have to start taking RMDs until you reach age 75. Failure to take an RMD by December 31 could subject you to a penalty of 50% of the amount you should have withdrawn, but didn't.

Make an appointment with your financial professional to discuss and implement strategies.