The end of the year is fast approaching, making it an ideal moment to take control of your financial planning. We know that financial to-dos can sometimes feel overwhelming, but proactive decision-making can truly empower you. With just a few intentional steps before December 31st, you can strengthen your financial foundation and set yourself up for a confident start to the new year.
Today is a special day in our home—we’re celebrating our five-year wedding anniversary. Over these years, we’ve moved to a new state (officially saying goodbye to our home in Virginia just last week), welcomed twin boys, and even added another dog to the mix. These milestones have been joyful, unpredictable, and at times a little chaotic. They’ve also reminded us that while we can’t control everything the future holds, we can take proactive steps in areas that matter most—like our financial well-being.
Here are four smart, actionable strategies to consider before December 31st:
1. Strategize Charitable Giving
Charitable giving is not just a heartwarming gesture; it can also be a strategic financial move. You might consider “donation bunching” or using a donor-advised fund to maximize the impact of your generosity.
If you’re over the age of 70½, using a Qualified Charitable Distribution (QCD) from your IRA can not only benefit your favorite causes but also help satisfy your required minimum distribution once you turn 73.
2. Fund Your HSA
In 2025, individuals can contribute up to $4,300 to their Health Savings Accounts (HSAs), and families can contribute up to $8,550. HSAs are uniquely powerful because of their triple tax advantages: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.
Whether for near-term health costs or long-term planning, maximizing your HSA is a smart step before year-end.
3. Explore Roth IRA Conversions
A Roth IRA conversion can open the door to enhanced financial security by moving funds from a traditional IRA into a Roth IRA. If you’re in a lower tax bracket this year, converting a portion may be advantageous.
This strategy isn’t right for everyone, but it’s worth reviewing annually to see if it fits your circumstances and long-term goals.
4. Maximize Retirement Contributions
Retirement contributions remain one of the most reliable ways to reduce taxable income while building future wealth.
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In 2025, you can contribute up to $23,500 to your 401(k), with an additional $7,500 catch-up if you’re over 50.
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Traditional and Roth IRAs allow contributions up to $7,000, plus a $1,000 catch-up for those over 50.
Making the most of these limits now can help pave the way for a more prosperous retirement.
Our anniversary reminds us that life is full of change, joy, and surprises—and while we can’t predict everything, we can prepare thoughtfully. Taking just a little time now can make a big difference in your financial outcomes for the year ahead.
Keep in mind that not all strategies are suitable for everyone, so we encourage you to consult with a financial professional or a certified public accountant (CPA). If you’d like to evaluate your options or schedule a financial check-in, we’d be happy to help ensure you’re on track.