Financial Moves to Secure Your Future Before Year-End
Alex Stanton

The Year-End Financial Sprint: Take Charge Today

The end of the year is fast approaching, making it an ideal moment to take control of your financial planning. We understand that financial to-dos can feel overwhelming, but proactive decision-making can be incredibly empowering. This guide will help you identify four smart, actionable strategies to enhance your financial well-being before December 31st.

Explore Roth IRA Conversions

Roth conversions allow you to convert a traditional IRA into a Roth IRA. This move might be advantageous if you're in a lower tax bracket this year, allowing you to pay taxes at a lower rate. However, it’s not for everyone and should be based on individual circumstances. It's wise to make this an annual consideration with input from a qualified financial advisor.

Strategize Charitable Giving

There are various ways to maximize the impact of your charitable donations. Consider donation bunching or utilizing a donor-advised fund as effective strategies. If you're over age 70½, a Qualified Charitable Distribution (QCD) from an IRA can satisfy required minimum distributions (RMD) once you turn 73, providing a tax-efficient way to manage your generous giving.

Fund Your HSA

For 2025, the contribution limits for Health Savings Accounts (HSAs) are $4,300 for individuals and $8,550 for families. HSAs offer triple tax benefits: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. They're powerful tools for both immediate healthcare costs and long-term planning needs.

Maximize Retirement Contributions

This year, increase your 401(k) contributions to $23,500, or $31,000 if you're over 50 with catch-up contributions. Also, aim to maximize your IRA contributions, with limits set at $7,000, or $8,000 if you're over the age of 50. These strategies not only help in reducing taxable income but also significantly aid in future wealth accumulation.

Final Thoughts: Tailor Your Strategy

Taking a little time now can make a big difference in your financial outcomes for the year ahead. Remember, not all strategies are suitable for everyone; personalized advice is key. Consider consulting with a financial professional or CPA to evaluate your options effectively and schedule a financial check-in if necessary.