Year End Money Moves

Here Are Some Things You Might Consider Before Saying Goodbye to 2025

What has changed for you in 2025? Did you start a new job, move to a new location, turn 50, 65 or need to begin taking required minimum distributions (RMDs)? If notable changes occurred in your personal or professional life, you may want to review your finances before this year ends and 2026 begins.

Even if your 2025 has been relatively uneventful, the end of the year is still a good time to see what changes may need to be made. Small changes in 2025 might put you in a better position to start 2026.

Should you engage in tax-loss harvesting? That’s the practice of taking capital losses (selling securities worth less than what you first paid for them) to manage capital gains.¹ If you are thinking about this move, consider seeking some guidance from a professional who can provide insights.

In fact, you could even take it a step further. Consider that up to $3,000 of capital losses in excess of capital gains can be deducted from ordinary income, and any remaining capital losses above that amount can be carried forward to offset capital gains in upcoming years.²

Keep in mind this article is for informational purposes only and is not a replacement for real-life advice. Please consult your tax professional before modifying your tax and investment strategy.

Do you want to itemize deductions? You may just want to take the standard deduction for the 2025 tax year, which has risen to $15,750 for single filers and $31,500 for joint. If you think it might be better to itemize, now would be a good time to get the receipts and assorted paperwork together. ³ A tax strategy to consider is bunching itemized deductions. This involves intentionally timing your itemized deductible expenses to maximize your tax savings over a multi-year period.⁴

This involves accelerating two or more years of expenses (charitable, medical, deductible tax payments) so to exceed the standard deduction threshold, and itemize your deductions, resulting in a greater tax savings. In the following year, since you prepaid, your expenses will be smaller and fall below the threshold, so you elect to take the standard deduction. By switching between taking the higher itemized deduction and the standard deduction in the following “non-bunched” year, your cumulative deduction is greater than if you had simply taken the standard deduction every year, savings you money.

Are you thinking of gifting? How about donating to a qualified charity or non-profit organization before 2025 ends? ⁵ Your gift may qualify as a tax deduction. For some gifts, you may be required to itemize deductions.⁶

You can make tax free gifts to family each year while you are still alive of up to $19,000 per person, per recipient in 2025 and the beneficiary may not be required to pay taxes on the gift.⁷

While we’re on the topic of year-end moves, why not take a moment to review a portion of your estate strategy? Specifically, take a look at your beneficiary designations. If you haven’t reviewed them for some time, double-check that these assets are structured to go where you want them to, should you pass away. Lastly, look at your will to see that it remains valid and up to date.

Check on the amount you have withheld. If you discover that you have withheld too little on your W-4 form so far, you may need to adjust your withholding.

Start 2026 on the right foot. Please do it now rather than in February or March. Little year-end moves might help you improve your short-term and long-term financial situation.

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