Year-End Financial Planning Strategies: Steps to Start the New Year Strong

As the year draws to a close, it’s an excellent time to pause and assess your financial picture to make sure your money is working toward the goals that matter most to you.

At Parkshore Wealth Management—serving clients from our California offices in Granite Bay and Folsom and our Utah locations in Lehi and Logan—we believe that year-end financial planning isn’t just about spreadsheets. It’s about aligning your financial decisions with your life.

Here are some practical strategies to review before December 31 to set up the new year on a firm financial footing.

1. Review Your Tax Position and Harvesting Opportunities

Taxes are a big piece of your financial puzzle. If you haven’t already, estimate your taxable income for the year and ask: Will I owe more than expected? Could I benefit from accelerating deductions or deferring income?

Tax-loss harvesting is one common year-end strategy. If you have investments that have declined in value, you might sell them to realize (or “harvest”) a loss, which can offset gains elsewhere or reduce taxable income.

It’s important to make sure the strategy fits your broader plan. Consider consulting a fiduciary financial advisor to determine if tax-loss harvesting makes sense for your situation.

2. Max Out Retirement Savings and Take Advantage of 2025 Limits

Contributing to retirement and health savings accounts (HSAs) before year-end can be one of the most effective ways to lower your taxable income and strengthen your financial foundation.

For 2025, contribution limits are as follows:

• 401(k): You can contribute up to $23,500, with a $7,500 catch-up contribution if you’re 50 or older. If you’re between 60 and 63, new rules increase your catch-up contribution to $11,250 in 2025.

• IRA: The limit is $7,000, with a $1,000 catch-up for those 50 and above.

• Health Savings Account: Limits are $4,300 for individuals and $8,550 for families, plus an additional $1,000 catch-up for those age 55 and older.

Even small increases can make a difference over time, especially when compounded year after year. Making the most of these contribution opportunities before year-end can help you keep more of what you earn while setting yourself up for a stronger future.

3. Re-evaluate Your Portfolio and Align with Your Goals

Markets move, and so does life. Take a moment to review your investments: Is your portfolio still aligned with your goals and time horizon? Has your risk tolerance changed?

Over the year, your asset allocation may have drifted from its original target due to market performance. Rebalancing—adjusting your holdings back to your intended mix—can help maintain the right balance between growth and stability.

4. Check Cash Flow, Emergency Reserves, and Upcoming Expenses

Your financial health includes both your long-term investments and your short-term flexibility. Review your emergency fund—ideally, three to six months of living expenses—and make sure it’s still appropriate for your current needs.

Also, look ahead to early-year expenses like property taxes, tuition, or travel. Planning now can prevent surprises and help keep your budget aligned with your goals.

5. Review Estate, Insurance, and Legacy Planning

The end of the year is also a good time to make sure your estate plan and insurance coverage still reflect your wishes and life circumstances. Review your wills, trusts, and beneficiary designations, and update them as needed.

This is also an opportunity to consider tax-aware legacy planning—structuring your estate and investment accounts so more of what you’ve built goes to your heirs or favorite causes, rather than to taxes. Thoughtful planning now can create meaningful benefits for the people and organizations you care about most.

6. Set Your Direction for the New Year

As you review your finances, think about the broader “why” behind your goals—what you’re building toward and how your financial plan supports that vision.

Also know that you don’t have to manage all the moving parts alone. Working with a fee-only, fiduciary financial advisor means you have a partner who’s required to put your interests first and who can help coordinate the details, from tax strategies and investment alignment to retirement and legacy planning.

At Parkshore Wealth Management, we help clients build and maintain a financial framework that adapts as life changes—reviewing year-end opportunities and guiding ongoing strategy throughout the year.

Schedule a complimentary, 15-minute chat with a fee-only, fiduciary financial advisor today to discuss your personal situation.

This material was written in collaboration with artificial intelligence (ChatGPT) derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.

Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor with offices in Granite Bay and Folsom, CA, and Lehi and Logan, UT. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.