2025 is Almost Over—Have You Made the 8 Money Moves That Could Shape Your 2026

As 2025 winds down, higher living costs, changing interest rates, and ongoing market uncertainty are putting household finances under more pressure than ever. Year-end financial planning is the ideal time to reduce your tax bill, review your 2025 retirement contribution limits, and position yourself for a more confident 2026. A few focused moves in the next couple of weeks can make a meaningful difference in your long-term financial security.​

Year-end financial planning does not have to be complicated. By focusing on seven smart money moves, you can improve your tax efficiency, strengthen your cash flow, and align your investments with your goals. The problem is that most people tell themselves they will “get to it after the holidays,” and then nothing gets done until well into the new year.​

1. Lock in smart 2025 tax moves before December 31

Many of the most valuable tax strategies are “use it or lose it” by year's‑end, especially in taxable investment accounts. Reviewing realized gains and losses now can reveal opportunities for tax‑loss harvesting, tax‑gain harvesting in lower‑income years, or realizing strategic capital gains before potential future tax changes. Coordinating these decisions with your overall financial plan can help you keep more of what you earn and reduce surprises at tax time.​

Charitable giving is another key year‑end lever. Many taxpayers can deduct charitable cash contributions to qualifying public charities up to a significant percentage of adjusted gross income in 2025, while appreciated securities are often capped at a lower percentage. For example, a household with $150,000 of adjusted gross income may be able to deduct tens of thousands of dollars of charitable gifts in 2025, depending on the mix of cash versus appreciated securities, how the gifts are structured, and other itemized deductions. Strategies such as bunching charitable deductions, gifting appreciated securities, or using qualified charitable distributions (QCDs) for those who qualify can enhance both your tax outcome and philanthropic impact.​

2. Maximize 2025 retirement contribution limits

Year‑end is a good checkpoint to confirm you are on track with the 2025 retirement contribution limits for your 401(k), 403(b), most 457 plans, and IRAs. For 2025, the employee contribution limit to 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan is $23,500, with an additional $7,500 catch‑up if you are age 50 or older.  Now, in 2025, those between the ages of 60 and 63 have an increased catch-up opportunity of $11,250.

For Traditional and Roth IRAs, the 2025 IRA contribution limit is $7,000, plus a $1,000 catch‑up for those age 50 or older. Roth IRA income limits also matter: in 2025, single filers can typically make full contributions if income is below roughly $150,000, with contributions phasing out between about $150,000 and $165,000, while married couples filing jointly generally see a phase‑out from about $236,000 to $246,000. Maximizing one or more of these 2025 retirement contribution limits can significantly increase your tax‑advantaged savings and improve long‑term retirement readiness.​

3. Rebuild your emergency fund and manage high‑interest debt

Recent surveys show many Americans still feel behind on emergency savings while facing higher day‑to‑day costs and elevated debt balances. A healthy emergency fund—typically three to six months of essential expenses—is a cornerstone of financial stability, and business owners or those with variable income may benefit from six to twelve months in readily accessible cash or cash equivalents. Year‑end is a natural time to recalculate your target number and design a plan to rebuild or increase your cash reserves for 2026.​

At the same time, earlier periods of higher interest rates have left many households with significant credit card or personal loan balances. What many consumers have missed is that, in many cases, credit card interest rates have now reached high‑levels of over 25%.  In fact, a recent notice from my American Express Macy’s Card stated the interest rate is now 30.99% for those who carry a balance, eroding consumers' financial progress if left unchecked.  A clear strategy that prioritizes paying down the highest‑interest balances while maintaining a minimum level of emergency savings can help you regain control, and in some cases, consolidation or refinancing may make sense when evaluated in the context of your broader financial plan.​

4. Confirm you have taken all required minimum distributions (RMDs) from IRAs and retirement plans, if applicable.

For those who fall under mandated required minimum distributions (RMDs), it is essential to ensure you have considered the balances from all IRAs and retirement plans, and that you are withdrawing based on the appropriate age based calculation factor.   Failure to do so can result in substantial IRS penalties on any shortfall. Depending upon your situation, and eligibility, it may also make sense to consider making a qualified charitable distribution (QCD) from your IRA which can help satisfy your RMD’s and making charitable tax efficient gifts.

This is another area where we can help guide you to reach your financial goals and objectives.

5. Plan for healthcare and 2025 HSA contribution limits

Healthcare and long-term care remain among the most significant and unpredictable expenses in retirement planning. If a high‑deductible health plan covers you, confirm whether you have maximized the 2025 Health Savings Account (HSA) contribution limits: $4,300 for self-only coverage and $8,550 for family coverage, with an additional $1,000 catch‑up allowance if you are age 55 or older and not enrolled in Medicare. HSAs offer triple tax advantages—deductible contributions, tax-deferred growth, and tax-free withdrawals for qualified medical expenses—and can be a powerful tool for covering both current and future healthcare costs.​

If you have access to a medical Flexible Spending Account (FSA), the 2025 FSA contribution limit is $3,300. Long‑term care planning is also essential, especially as people live longer and want to remain independent for as long as possible. Evaluating long‑term care insurance options, hybrid policies, or self‑funding strategies can help protect your retirement portfolio and reduce the future financial burden on loved ones when combined with thoughtful healthcare planning.​

6. Protect your family with updated Estate Planning

Over time, family situations, assets, and goals change—but many people do not update their estate planning documents or insurance coverage to reflect those changes. Year‑end is an ideal reminder to review your wills, powers of attorney, healthcare directives, and beneficiary designations to ensure they still match your wishes, especially after major life events such as marriage, divorce, births, deaths, or the sale of a business. Building these reviews into your annual financial planning checklist can keep your documents aligned with your current reality.​

Insurance plays a key role in protecting your financial plan from unforeseen events. Reviewing your life, disability, and property and casualty coverage can help confirm that your protection is both adequate and cost-effectivef relative to your current income, assets, and dependents. Updating coverage levels, riders, or policy types can help manage risk more effectively and provide peace of mind for you and your family as you move into 2026.​

7. Take advantage of New Jersey‑specific tax opportunities

If you live or own property in New Jersey, the state’s tax rules can have a significant impact on your overall financial plan and retirement income strategy. Property taxes, state income taxes, retirement income treatment, and various relief programs all interact with your investment, distribution, and estate decisions, making New Jersey tax planning an important part of your year‑end checklist. Understanding how these rules apply to your situation can help you keep more of your income and optimize where and how you draw funds in retirement.​

For a deeper look at current New Jersey tax issues and planning ideas, review “Navigating New Jersey’s 2025 Tax Landscape: Essential Insights.” Coordinating state and federal tax strategies—such as how you take retirement income, structure charitable giving, or plan for property‑tax relief—can materially improve your long‑term after‑tax results and should be integrated into your broader financial planning process.​

8. Stress‑test your investment portfolio for 2026

With markets adjusting to a new interest‑rate environment and evolving economic conditions, this is an ideal time for a “30‑minute annual investment audit.” Start by reviewing your asset allocation to see whether market movements have pushed your portfolio away from your target mix of stocks, bonds, and cash, then use disciplined rebalancing to realign with your risk tolerance and time horizon. This is also a good moment to revisit whether your portfolio still reflects a long‑term investment strategy instead of a collection of short‑term ideas.​

Concentration risk is another key area to examine. Many investors discover that a single stock, sector, or employer equity position has grown to represent an outsized share of their portfolio. Year‑end is a good opportunity to gradually diversify, manage capital gains thoughtfully, and reduce the impact of any single holding on your long‑term plan, rather than chasing performance or reacting emotionally to market headlines.​

Investment portfolio management is a key service we expertly manage for our clients.

Your 2025 year‑end financial planning checklist and next step

Focusing on just a handful of strategic year‑end moves can simplify financial planning and help you feel more in control: review your 2025 tax picture, leverage charitable giving strategies, maximize your 2025 retirement contribution limits, shore up your emergency fund, manage high‑interest debt, stress‑test your portfolio, update protection planning, and, where applicable, take advantage of New Jersey‑specific tax opportunities. Even if you cannot address everything at once, committing to a short, prioritized year‑end checklist now can set a better course for 2026.​

If you want a fiduciary second opinion before year‑end, contact us for a free consultation with a Certified Financial Planner by visiting our Free Consultation page. Partnering with an independent advisory firm that provides comprehensive financial planning and investment management can help you connect all the pieces of your financial life and move into the new year with greater confidence.

​Edward C. Goldstein, CFP®, MBA, President
CERTIFIED FINANCIAL PLANNER ™ Practitioner 
Financial Life Planning, LLC
10,000 Lincoln Dr. East, Suite 201
Marlton, NJ  08053
Phone: 856-988-5480
Fax: 908-292-1040