As the year winds down, it’s a natural time to take stock of where you are financially—and where you want to be. Even small, intentional steps before year-end can help you enter the next year more organized, confident, and in control of your financial future.

Here are six areas worth reviewing to make sure your finances are on track and your money is working as efficiently as possible.

1. Revisit Your Cash Reserves

Take a moment to look at where your cash is sitting. Some savings accounts and money market funds continue to offer strong yields, while others still pay very little.

What to consider:

• Shop around: Online banks and high-yield savings accounts often offer better rates than traditional banks.
• Check fees: Some funds have reinstated management fees that can quietly reduce your earnings.
• Verify protection: Make sure your deposits are covered by FDIC or SIPC insurance.
• Understand sweep programs: Cash management tools that automatically move money between accounts can boost returns—but always read the fine print to understand how your funds are handled.

2. Put Idle Cash to Work

If your cash balances have grown beyond your emergency fund, consider how to deploy that money more strategically.

Ideas to explore:

• Rebalance your portfolio: Market shifts can throw off your allocation. Use cash to rebalance and stay aligned with your risk and return goals.
• Pay down high-interest debt: Reducing credit card balances can deliver an instant, guaranteed return.
• Evaluate I Bonds or short-term Treasuries: These can still be useful tools for short- to mid-term savings, depending on your goals.
• Boost retirement savings: If you haven’t maxed out your 401(k), Roth IRA, or HSA, now’s the time to check contribution limits and catch-up options.

3. Rebuild or Replenish Your Emergency Fund

If you dipped into savings this year—whether for a home repair, major purchase, or job change—use this time to rebuild your safety net.

Ways to get back on track:

• Automate savings: Redirect a portion of each paycheck into a high-yield savings account.
• Use new income: If you received a bonus, raise, or tax refund, set aside part of it before it blends into everyday spending.
• Leverage Required Minimum Distributions (RMDs): If you’re taking RMDs but don’t need all of that income, consider using a portion to shore up your cash reserves.

4. Make Strategic Tax Moves

Before December 31, you still have time to make tax-smart decisions that could lower your bill or set you up for the year ahead.

Areas to review:

• Tax-loss harvesting: Selling investments at a loss can offset capital gains elsewhere.
• Mutual fund distributions: Avoid buying funds right before they distribute taxable gains.
• Roth conversions: If your income is lower this year or you expect higher future taxes, converting a portion of a traditional IRA to a Roth could make sense.
• Maximize contributions: Annual contribution limits for 401(k)s, IRAs, and HSAs reset each year—don’t leave unused tax benefits on the table.

5. Review Healthcare Coverage and Benefits

Open enrollment season is the perfect time to make sure your benefits still fit your needs.

Key reminders:

• Health Savings Account (HSA): These accounts offer triple tax benefits—deductible contributions, tax-free growth, and tax-free withdrawals for qualified expenses.
• Flexible Spending Accounts (FSA): Check whether your FSA has a “use-it-or-lose-it” policy and spend down eligible expenses before the deadline.
• Medical care: If you’ve met your deductible for the year, consider scheduling procedures or exams before the plan resets.
• Preventive care: Don’t skip free annual wellness visits or screenings—they can help catch small issues early.

6. Reflect and Plan Ahead

Before the holidays, carve out time to reflect on your year—both financially and personally.

Ask yourself:

• Did my income or expenses change?
• Have my goals shifted?
• Do I need to adjust my savings or investment strategy?
• Have I reviewed my estate plan and updated beneficiaries?
• Do my insurance coverages still align with my needs?

Regularly revisiting these questions helps ensure your financial plan evolves as your life does.

Final Thoughts: Use The Next Few Months Wisely

Taking a few hours now to review your finances can help you start the new year feeling more confident and prepared. You don’t need to tackle everything at once—even small steps, like adjusting contributions or reviewing your investments, can make a meaningful difference over time.

At Navalign Wealth Partners, we help clients align their finances with their goals—so each decision supports the bigger picture. Whether you’re looking to optimize your portfolio, manage taxes, or strengthen your year-end plan, we’re here to help.

Contact Navalign Wealth Partners to schedule your year-end financial review and start the new year on solid footing.