How to Drive Financial Momentum into Next Year

Your peak earning years are a powerful time to build financial momentum—but it takes more than income. Strategic planning and informed decisions are key. As the year ends, consider these five areas to strengthen your financial foundation:

1. Investments

Rebalance your portfolio to align with your goals and risk tolerance. If you hold employer stock or RSUs, check for over-concentration. Life changes may also affect your comfort with risk—discuss this with your advisor.

2. Tax Efficiency

Act before December 31 to impact this year’s taxes.

• Use tax-loss harvesting to offset gains.
• Max out contributions to 401(k), IRA, and HSA accounts.
• Spend your FSA balance or check for grace periods.
• Consider charitable giving via a Donor-Advised Fund for flexibility and tax benefits.

3. Insurance Review

Growing income and responsibilities mean evolving coverage needs.

• Compare health plans during open enrollment.
• Ensure life and disability insurance match your current situation.
• Consider an umbrella policy for added liability protection.

4. Education Planning

Whether it’s private school or college, plan ahead.

• Make 529 contributions for potential state tax benefits.
• Understand new rollover rules to Roth IRAs.
• Use calculators or consult your advisor to forecast costs.
• Consider how current income affects future financial aid.

5. Set Goals for Next Year

• Update your budget and automate savings.
• Take a net worth snapshot to track progress.
• Refresh estate documents and beneficiary designations.
• Explore opportunities for career or income growth.

The end of the year is the perfect moment to step back, review, and refine your approach. A few proactive decisions now can help you take full advantage of your earning years, reduce your tax burden, and build wealth.

Together we can personalize these strategies and uncover opportunities you may not have considered. With thoughtful planning, you can enter the new year ready to grow.