Man in coffee shop, laptop and small business owner, entrepreneur in hospitality management and connectivity. Happy male professional, cafe franchise and wireless connection with digital admin on pc.
Man in coffee shop, laptop and small business owner, entrepreneur in hospitality management and connectivity. Happy male professional, cafe franchise and wireless connection with digital admin on pc.

Wrap Up the Year:
Financial Moves
to Consider Before 2025

Time to read: 3 min

Wrap Up the Year: Financial Moves to Consider Before 2025

As the year winds down, it’s natural to start thinking about what’s next. But before you dive into new goals, it’s a smart idea to take a quick look at your finances and see if there are any moves you can make now that could set you up for a smoother start to 2025. Here are a few things to keep in mind:

1. Top Off Your Retirement Savings
If you haven’t hit the maximum on your retirement contributions, now’s the time to think about it. For your 401k, the IRS contribution limit is $23,000 (with a ‘catch-up’ contribution limit of $7600, if you are over age 50). Your IRA contribution limit is $7,000 (with a ‘catch-up’ contribution of $1,000, if you are over age 50).  Adding to these accounts could lower your taxable income and give your savings a boost for retirement. 

***Certain incomes may require an advisor to help you with a backdoor contribution. 

2. Take Advantage of Tax-Loss Harvesting
If you’ve sold investments at a profit this year, selling off underperformers might help reduce your tax bill. By strategically realizing losses, you can effectively lower your taxable income and potentially decrease your overall tax liability. 

Additionally, you can apply up to $3,000 in losses to offset other income, providing you with extra tax relief. It’s essential to review your portfolio and consider this approach before the year ends, as it can create a more balanced investment strategy while optimizing your tax situation.

3. Make the Most of Charitable Giving
If you’ve been thinking about donating to charity, now’s a good time. Giving to a qualified charity can reduce your taxable income, and donating appreciated stocks* or other assets may help you avoid paying capital gains taxes. If you’re over 70½ and have a traditional IRA, you could also look into a Qualified Charitable Distribution (QCD). It can count toward your Required Minimum Distribution (RMD) and might lower your taxable income.

*Source.

4. Use Your Healthcare Funds
Healthcare expenses have a way of sneaking up on us, especially at the end of the year. If you have a Flexible Spending Account (FSA), make sure to use up the balance—many plans have a “use-it-or-lose-it” policy. For those with Health Savings Accounts (HSAs), it’s a good time to bump up contributions if you can. HSAs are great because they roll over year after year and come with some helpful tax benefits.

5. Check in on Your Estate Plan
It’s easy to forget about estate planning, but the end of the year is a good chance to make sure everything is up to date. Double-check your will, trusts, and beneficiary designations—especially if something major has changed in your life, like a marriage or new baby. Reviewing now could also help avoid complications later and ensure your assets end up where you want them.

6. Review Your Big Picture Goals
Take a moment to step back and ask yourself: How are my finances looking overall? Are savings on track? Could I make any adjustments to spending or debt management? If you’ve got big expenses coming up next year, like a vacation or home project, it’s good to plan for those now.

Wrapping It Up
End-of-year financial planning isn’t just about crunching numbers—it’s about making sure you’re in a good place as you head into the new year. Whether it’s boosting retirement savings, giving back through charitable donations, or simply getting your healthcare funds sorted, a little attention now can make a big difference later.

If you have questions or want to make the most of any of these opportunities, talking with a financial professional can be a great way to make sure you’re on the right track.

This blog is for informational purposes. Certain information contained herein (including any forward-looking statements and economic and market information) has been obtained from published sources and/or prepared by third parties and in certain cases has not been updated through the date hereof. While such sources are believed to be reliable, The Tranel Group does not assume any responsibility for the accuracy or completeness of such information. The Tranel Group does not undertake any obligation to update the information contained herein as of any future date.

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