As the year winds down, it’s natural to start thinking about holidays, family, and the fresh start ahead. But it’s also one of the most powerful times to take control of your finances.
A lot can change in 12 months — in the markets, in legislation, and in your personal circumstances. Year-end planning ensures nothing slips through the cracks and that you’re entering the new year confident, organized, and prepared.
At Bautis Financial, we provide clients with our “2025 Last-Chance Financial Planning Checklist.” which highlights tasks that have a December 31st deadline, as well as annual planning considerations.
While you go through the checklist, you can cross-reference the guide below. The purpose is to walk you through the essential areas to review. Whether you’re building momentum, catching up, or navigating major life changes, these are the key steps that help keep your world running smoothly.
1. Taxes: Get Ahead Before the Calendar Turns
The final months of the year are critical for tax planning. Strategic moves today can make a meaningful difference come April.
Consider reviewing:
- Projected income for 2025 & 2026: Useful for planning deductions, credits, and tax-efficient investment strategies.
- Realized and unrealized gains and losses: Harvesting losses or realizing gains in a controlled way may help manage taxes.
- Cost basis on sold investments: Ensures accuracy and avoids surprises.
- Sales or transfers of appreciated property: Think real estate, business interests, or highly appreciated stock.
- Charitable giving and gifting plans: Make sure contributions are timed properly to count for this tax year.
- Loss carry-forwards: Don’t let unused losses go unnoticed.
- Deductions and credits available under current tax law, including updates from legislation such as the One Big Beautiful Bill Act.
Thoughtful tax planning now can help minimize stress later — and potentially lower your overall tax bill.
2. Retirement Planning: Make Every Year Count
A year-end review is an ideal time to revisit your retirement strategy and ensure you’re taking advantage of available opportunities.
Key items to evaluate:
- Max out contributions to IRAs and 401(k)s: Including catch-up contributions if you’re eligible.
- Analyze Roth IRA conversion scenarios: Year-end is prime time to evaluate potential benefits.
- Required Minimum Distributions (RMDs): If you’re age 73 (born 1951-1959), ensure RMDs are taken correctly to avoid penalties.
- New to self-employment? Consider opening a Solo 401(k) or SEP IRA before year-end.
- Check the status of all retirement accounts to ensure beneficiary designations, investment strategies, and contributions are up to date.
- Social Security claiming strategies: Especially if you’re in the window where filing options become available.
Even small adjustments made annually can have a meaningful long-term impact.
3. Investments: Rebalance, Reassess, Refresh
Market conditions change, and so do your goals. A year-end investment review helps ensure your portfolio is working for you — not drifting off course.
Review the following:
- Investment goals and strategy: Do they still align with your life and timeline?
- Asset allocation: Rebalancing may help manage risk and keep you diversified.
- Fundamentals of portfolio positions: Consider whether each holding still earns its place.
- Income and savings needs: Ensure investments match short- and long-term cash flow requirements.
- Asset location: Evaluate which investments live in taxable vs. tax-advantaged accounts.
- Loans, mortgages, and debt structure: Their impact ties directly into your investment strategy.
- Dividend distributions: Understand how payouts impact taxes and reinvestment planning.
- Employee stock options: Evaluate vesting schedules and strategic exercise opportunities.
Being proactive today can help protect your long-term plan tomorrow.
4. Insurance: Protect What You’ve Built
Insurance isn’t set-and-forget — your coverage should evolve as your life and assets grow.
Year-end is a smart time to:
- Review property and casualty policies for accuracy and adequacy.
- Compare costs on current insurance coverage.
- Reassess life insurance and health insurance based on current needs.
- Identify major changes in your personal, professional, or financial life that might require insurance updates.
Insurance is often overlooked, but it’s one of the most important pillars of financial stability.
5. Health & Benefits: Prepare for the Year Ahead
Healthcare and employer benefits can meaningfully impact your finances — and many decisions must be made before December 31.
Take a moment to check:
- Employer health insurance options during open enrollment.
- State marketplace plans if you’re self-employed or transitioning coverage.
- Health Savings Account (HSA) contributions for 2025 – one of the most tax-advantaged tools available.
- Flexible Spending Account (FSA) balances: Use funds before they expire.
- Medicare enrollment options: Particularly important for those nearing age 65 or already enrolled.
These decisions can influence your taxes, savings, and out-of-pocket medical costs for the entire next year.
6. Key Age Milestones: Don’t Miss Important Deadlines
Several financial opportunities and requirements are triggered by age. If you or someone in your family will reach one of these milestones soon, plan ahead:
- Age 50: Eligible for retirement plan catch-up contributions.
- Age 55: Penalty-free 401(k) withdrawals (if retired).
- Age 59½: Penalty-free IRA withdrawals.
- Ages 62–70: Social Security eligibility and planning considerations.
- Age 65: Medicare enrollment begins.
- Age 73: RMDs required for those born 1951–1959.
Your timeline matters — knowing these milestones helps you make informed, timely decisions.
7. Major Life Changes: Reflect on What’s New
Your financial plan should evolve alongside your life. Year-end is a natural time to take stock of any changes that might impact your strategy.
Ask yourself:
- Did you move, change jobs, or sell a major asset?
- Did you experience a marriage, divorce, birth, adoption, or loss?
- Did you refinance your home or transfer financial assets?
- Is a family member facing assisted living needs or a serious illness?
- Did you receive a gift or inheritance?
Events like these often require important updates to your financial plan, insurance coverage, tax strategy, and estate documents.
8. Family, Gifting & Legacy: Plan for the People Who Matter
Year-end is also a chance to revisit your plans for the people and causes you care about.
Consider reviewing:
- Education accounts such as 529 plans.
- Trust funding or updates that may be needed.
- Annual gifts to family — ensuring they’re completed before year-end.
- Charitable contributions — especially if you’re using donor-advised funds or itemizing deductions.
These steps help ensure your intentions are clearly reflected and carried out.
A thoughtful year-end review is one of the most reliable ways to stay financially organized, reduce surprises, and make meaningful progress toward your goals.
Whether your year included exciting changes, unexpected challenges, or steady progress, taking the time now to review your financial picture can help set up a strong and confident start to 2026.
If you’d like help reviewing any of these items or want guidance on what applies to your situation, our team at Bautis Financial is here to support you.
Bautis Financial LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.