Year-End Financial Checklist: What Every Investor Should Consider

Do you have a Year-End Financial Checklist? As the year winds down and the holiday season kicks into full swing, it’s the perfect time for investors to reflect on their financial strategies and ensure they’re on track for the year ahead. While festivities take center stage, don’t let your investment planning fall by the wayside. The end of the year offers an opportunity to adjust investments, finalize tax strategies, and set yourself up for future financial success. Here’s a short Year-End Financial Checklist of what investors should consider before the new year.

1. Review Your Investment Portfolio

The end of the year is an ideal time to take a step back and review your investment portfolio. Have your assets been performing as expected? Are they aligned with your long-term financial goals and risk tolerance? Over the course of the year, market conditions can shift, and your portfolio may need rebalancing to stay on track.

For instance, if certain sectors or assets have outperformed, they may now make up a larger portion of your portfolio than intended, introducing more risk than you’re comfortable with. On the flip side, underperforming assets might need to be addressed to prevent them from dragging down your overall returns. A well-balanced portfolio can help you manage risk and improve long-term performance.

2. Take Advantage of Tax Loss Harvesting

Tax loss harvesting is a strategy where investors sell underperforming investments to offset taxable gains elsewhere in their portfolio. If you’ve experienced losses in certain assets this year, consider selling them before December 31st to reduce your overall tax burden. These losses can help offset gains from other investments, potentially lowering your tax liability for the year.

If your losses exceed your gains, you can use up to $3,000 to offset ordinary income. Any remaining losses can be carried forward to future years, providing potential tax benefits down the road. Just remember, to avoid the IRS’s “wash-sale” rule, you can’t repurchase the same or substantially identical security within 30 days of the sale.

3. Take Your Required Minimum Distributions (RMDs)

If you are age 73 or older, you are required to take minimum distributions from your tax-deferred retirement accounts like a traditional IRA. These Required Minimum Distributions (RMDs) must be withdrawn by December 31st each year. Failure to take your RMD can result in hefty penalties—up to 50% of the amount you were supposed to withdraw.

If you have a charitable inclination, consider using your RMD to make a Qualified Charitable Distribution (QCD). If you are 70½ or older, you can donate up to $100,000 from your IRA directly to a qualified charity, which won’t count as taxable income. This can be a tax-efficient way to meet your RMD requirement while giving back during the holiday season.

4. Contribute to Retirement Accounts

Before the end of the year, it’s also worth considering making contributions to retirement accounts. If you’re eligible, contribute the maximum to your IRA or 401(k) to take advantage of tax-deferred growth. Traditional IRA and 401(k) contributions can reduce your taxable income for the year, providing an immediate tax break.

If you’ve already maxed out contributions to tax-deferred accounts, you may want to consider funding a Roth IRA (if eligible) for future tax-free withdrawals. With a Roth IRA, your contributions grow tax-free, and qualified withdrawals in retirement are also tax-free.

5. Set Financial Goals for the New Year

The end of the year is a natural time for reflection and goal setting. Take some time to evaluate your financial goals for the upcoming year. Are you on track with your retirement savings? Do you have any new financial goals—like purchasing a home, starting a business, or funding education? Consider creating a roadmap for success by using our Year-End Financial Checklist. Whether it’s contributing more to your retirement account, building an emergency fund, or expanding your investment portfolio, having clear objectives will help guide your investment strategy in the year ahead.

I know this is a busy time of year for us all, but spending some time to plan out your financial future can help you achieve your goals for 2025 and beyond. So, before you get lost in the holiday hustle, take a moment to reflect on your investments and financial goals—you’ll be glad you did when the new year arrives. We are here if you have any questions and as always, we are happy to help. Happy holidays and happy investing!

ASHLEY ROSSER, PRESIDENT

Prior to her career in the financial services industry, Ashley earned her Bachelor of Science in Nursing from Cedarville University.

Ashley decided to make a career change from her ten years within the healthcare industry as a pediatric emergency room nurse to retirement and 401K investment planning. She joined Victory Fiduciary Consulting in 2008 after obtaining her Series 65 professional financial license and went on to earn her AIF (Accredited Investment Fiduciary) professional designation from the Center for Fiduciary Studies.