5 Smart Money Moves to Make Before the End of the Year
As we approach the final months of the year, it’s the perfect time to take stock of your finances and make sure you’re on track to meet your long-term goals. A few proactive steps now can help you reduce taxes, boost savings, and start the new year on stronger financial footing.
Here are five smart money moves to consider:
1. Maximize Retirement Contributions
If you have a 401(k), 403(b), or IRA, check how much you’ve contributed so far this year. For 2025, the 401(k) contribution limit is $23,000 (plus a $7,500 catch-up if you’re 50 or older). Contributing more before year-end can reduce your taxable income and help your retirement savings grow faster.
2. Review Your Investment Portfolio
Market changes throughout the year may have shifted your portfolio’s balance. Now is a good time to revisit your allocation to ensure it aligns with your risk tolerance and financial goals. Rebalancing can help keep your strategy on track.
3. Use Remaining HSA or FSA Funds
If you have a Flexible Spending Account (FSA), check the deadline to use your funds—many expire at year-end. Health Savings Accounts (HSAs) don’t expire, but maximizing contributions can give you both tax advantages and a medical safety net.
4. Make Charitable Contributions
Donating to qualified charities before December 31 can reduce your taxable income while supporting causes you care about. Consider both cash donations and gifts of appreciated assets, such as stocks.
5. Plan for Next Year’s Goals
Think ahead to what you want to achieve financially in 2026—whether it’s buying a home, increasing retirement savings, or funding a child’s education. Mapping out your priorities now can make it easier to stay consistent in the new year.
The Bottom Line:
Small, intentional actions before the year ends can have a lasting impact on your financial future. If you’re unsure which strategies are right for you, the team at Cornerstone Portfolios can provide personalized guidance to help you make the most of your money.
📞 Contact us today to schedule a year-end financial review.