6 Year-End Moves to Consider Before the Year-End

It’s been another eventful year. Between continued inflation concerns, shifting interest rate policies, election-year buzz, and the usual market ups and downs, 2025 has given investors and savers a lot to think about.

With time still left in the year, now is a great opportunity to pause, assess where things stand, and take a few intentional steps to help strengthen your financial foundation before year-end.

Here are six areas to revisit while there’s still time to make meaningful adjustments.

Revisit Your Cash Reserves

Where is your cash parked right now?

Some savings accounts and money market funds are currently offering yields above 4% APY—but others are still paying far less. It’s worth reviewing your account to ensure your cash is earning a competitive rate.

Here’s what to consider:

Shop around: Online banks and high-yield savings accounts may offer better rates than traditional brick-and-mortar institutions.
Understand the fees: Some money market funds have reinstated management fees they had waived in previous low-rate environments.
Check for FDIC or SIPC protection: Make sure your funds are insured and held in reputable vehicles.
Sweep programs: Some cash management platforms automatically move funds between banks to secure better yields—but be sure you understand the tradeoffs.

Put Idle Cash to Work

If you’re sitting on excess cash beyond your emergency fund, now may be a good time to consider how to deploy it in ways that support your broader goals.

A few options to consider:

Rebalance your portfolio: If market volatility has shifted your asset allocation, use cash to bring your portfolio back in line with your long-term plan.
Pay down high-interest debt: Credit card balances are especially costly in high-rate environments. Reducing or eliminating them can offer a guaranteed return.
Consider I Bonds carefully: Treasury Series I Bonds may still be an attractive option for certain savers. As of late 2025, yields have come down from earlier highs but may still provide inflation protection for cash you don’t need in the next 12 months.
Top off your retirement accounts: If you’re behind on contributions, this is a good time to review your 401(k), Roth IRA, or HSA strategy (more on that below).

Replenish (or Build) Your Emergency Fund

If you’ve dipped into your savings this year—whether for large purchases, unexpected expenses, or job transitions—now is a good time to rebuild.

A few strategies:

Redirect new income: If you received a raise, bonus, or unexpected windfall, consider automating a portion of that income to go directly into savings.
Increase automatic contributions: Even increasing your direct deposit to a savings account by $50–100 per month can help restore your safety net over time.
Use Required Minimum Distributions (RMDs): If you’re subject to RMDs, consider using a portion to rebuild reserves, especially if you don’t rely on the income for everyday expenses.

Make Strategic Tax Moves

Year-end is prime time for tax planning. A few things to consider before December 31:

Tax-loss harvesting: If you hold investments in a taxable account that are currently at a loss, selling them to realize the loss can offset other capital gains—and potentially reduce your tax bill.
Be mindful of mutual fund distributions: Many mutual funds make capital gain distributions in December. If you’re thinking about buying or selling a fund, be aware of the timing.
Consider Roth conversions: Converting traditional IRA funds to a Roth IRA may make sense in a lower-income year or if your tax rate is expected to rise. Be sure to model the tax impact first.
Maximize retirement contributions: In 2025, the 401(k) contribution limit is $23,500 (or $31,000 if you’re 50 or older). The Roth IRA limit is $7,000 ($8,000 with catch-up), though income phaseouts apply.

Reevaluate Healthcare Coverage and Benefits

With open enrollment season around the corner, now’s a good time to review your health-related finances.

Consider:

Have you maxed out your HSA? Contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified expenses—making them one of the most tax-efficient tools available.
Use up FSA funds: If you have a Flexible Spending Account with a “use-it-or-lose-it” provision, spend down those dollars on eligible health or childcare expenses.
Meet your deductible: If you’ve already met your health insurance deductible for the year, it may make sense to schedule additional treatments or exams before the calendar resets.
Annual benefits: Have you completed your preventive exams, screenings, or wellness visits? Many are covered at no cost to you.

Reflect and Prepare for the Year Ahead

Before you get caught up in the holiday rush, take some time to review what’s changed in your life this year—and what that means for your finances.

Questions to ask:

Did your income change?
Did you welcome a new child or grandchild?
Did you change jobs, retire, or start a business?
Have your goals shifted?
Did your risk tolerance change based on market behavior or personal events?

It’s also a great time to review your estate plan, update beneficiaries, check insurance coverage, and ensure your financial documents are up to date.

Final Thoughts: Use These Next Few Months Wisely

A few hours of review now can help you start the new year feeling more confident, prepared, and aligned with your goals. Don’t feel like you have to do everything—but picking even one or two action items can make a meaningful difference.

Need Help Reviewing Your Year-End Strategy?

Whether you’re looking to optimize your portfolio, reduce your tax burden, or map out a plan for 2026, we’re here to help. Reach out to Navalign Wealth Partners for guidance tailored to your situation and goals.