Year-End Tax and Financial Planning Tips: What to Review Before December 31

By Susie Panduku on December 3, 2025

As we approach the end of the year, now is an excellent time to review your financial and tax strategies to help ensure you are well-positioned for the upcoming year. Thoughtful planning can help you minimize taxes, maximize savings, and align your financial decisions with your long-term goals. Below are some key considerations:

1. Tax Planning Considerations

Evaluate your income and deductions for this year versus next. Strategies such as accelerating deductible expenses or deferring income can help manage your taxable income. If you itemize deductions, consider the charitable bunching strategy—making multiple years’ worth of charitable contributions in one year to exceed the standard deduction threshold. Using a Donor-Advised Fund can allow you to adjust timing while securing an immediate tax benefit.

2. Investment and Retirement Planning

Review your portfolio for tax-loss harvesting opportunities to offset capital gains. Rebalancing your investments helps maintain alignment with your goals and risk tolerance. For retirement accounts, maximize contributions to 401(k)s, IRAs, and HSAs before year-end. If you are over 73, remember to take your Required Minimum Distributions (RMDs) to avoid penalties. Additionally, consider a Roth conversion—moving funds from a traditional IRA to a Roth IRA. While this creates taxable income now, it can provide tax-free growth and withdrawals in the future, especially if you expect higher tax rates later.

3. Estate and Gift Planning

Take advantage of the annual gift tax exclusion to transfer wealth efficiently. Review beneficiary designations and update estate documents as needed. Charitable giving strategies can also help reduce your taxable estate while supporting causes you care about.

Every client situation is different, so it is important to reach out to your advisor to see what actions you might be able to take before year-end.

Hightower Advisors, LLC is an SEC registered investment adviser. Registration as an investment advisor does not imply a certain level of skill or training. Securities are offered through Hightower Securities, LLC member FINRA and SIPC. Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice. This material is not intended or written to provide and should not be relied upon or used as a substitute for tax or legal advice. Information contained herein does not consider an individual’s or entity’s specific circumstances or applicable governing law, which may vary from jurisdiction to jurisdiction and be subject to change. Clients are urged to consult their tax or legal advisor for related questions.