Year-End Wealth Planning

Smart strategies designed to support your life today—and your goals for tomorrow

Why is year-end planning especially important in 2025?

2025 brings new financial complexity. With the One Big Beautiful Bill Act (OBBBA), rising interest rates and ongoing market volatility, year-end planning isn’t just smart—it’s essential. Now is the time to adjust your strategy and start 2026 with clarity and confidence.

Q1: What is OBBBA, and how does it affect my financial plan?

A: The OBBBA introduced important changes, even if they weren’t as sweeping as expected. Key updates include:

• New rules for charitable deductions
• Higher limits on SALT (state and local tax) deductions
• Adjusted AMT thresholds, affecting more high-net-worth individuals
• Minor changes to estate exemption calculations

These may impact your taxes, giving strategy and estate planning.

Q2: How can I reduce my taxes before year-end?

A: Here are some smart moves to consider:

• Review your income and tax bracket projections
• Consider accelerating income, like year-end bonuses or Roth conversions
• Max out contributions to your 401(k) and HSA
• Evaluate whether it makes sense to prepay property or state taxes
• Time your charitable donations strategically

Planning ahead can help you avoid surprises—and save money.

Q3: Do I need to make any changes to my investments?

A: This year’s strong market performance may have thrown off your portfolio balance. Consider:

• Rebalancing your portfolio to align with your goals
• Locking in gains by selling high-performing assets
• Using tax-loss harvesting to offset gains
• Reviewing your risk tolerance in light of life or market changes

Q4: How much cash should I hold going into 2026?

A: Holding cash can provide flexibility—especially for those nearing retirement. Consider:

• Setting aside enough for 12–18 months of expenses
• Preparing for large upcoming costs
• Reassessing your mix of cash vs. investments

Be mindful not to hold too much, as idle cash may lose out to inflation.

Q5: What estate and insurance items should I review?

A: Use this time to make sure your plan still reflects your wishes:

• Review and update wills, trusts, and powers of attorney
• Confirm beneficiary designations across all accounts
• Reevaluate life, disability, and long-term care insurance

Year-end is a great checkpoint—even if no major life changes occurred.

Q6: How does the Alternative Minimum Tax (AMT) affect me this year?

A: OBBBA’s AMT changes may impact more individuals in 2026. That’s why 2025 is a good time to:

• Accelerate deductions, like charitable giving or tax payments
• Plan around large income events or stock option exercises
• Understand how AMT might offset some new tax benefits

A tax advisor can help fine-tune your timing and strategy.

Q7: Can I contribute to an IRA or HSA after December 31?

A:

• 401(k): Contributions must be made through payroll by December 31, 2025
• IRA and HSA: You can contribute up until April 2026, before filing your taxes

Just be sure to specify the correct tax year on your contributions.

Q8: What should I review if I had a life change this year?

A: If you experienced a major event—like marriage, divorce, retirement, a job change or inheritance—now’s the time to revisit:

• Your tax strategy
• Estate planning documents
• Insurance coverage
• Investment allocation
• Your cash flow and goals

Q9: Who can help me with year-end planning?

A: You don’t have to go it alone. Our Private Wealth Planning team is here to help you:

• Evaluate your current strategy
• Prioritize your next steps
• Make confident decisions going into 2026