Financial Tips for December: Year-End Financial Wrap-Up

BFGWM Team
5 days ago
2 min read

As 2025 comes to a close, December is the perfect time to pause, reflect, and make the most of the remaining financial opportunities before the year ends. From maximizing retirement contributions to preparing for tax season, taking a few smart steps now can set you up for a stronger financial start in 2026.

Here’s how to finish the year on a high note:

1. Max Out Retirement Contributions Before the Deadline

If you haven’t reached your annual contribution limits, December is your final chance to boost your retirement savings for 2025.

401(k) contributions: The 2025 employee contribution limit is $23,000 (plus an additional $7,500 catch-up contribution if you’re age 50 or older).
IRA contributions: You can contribute up to $7,000 (or $8,000 if you’re 50+), and you have until April 15, 2026, to make 2025 contributions—but contributing now allows your investments to grow tax-deferred sooner.

Pro Tip: If you received a year-end bonus, consider allocating a portion toward your retirement accounts—it’s a great way to build future wealth while potentially reducing taxable income.

2. Review Tax Strategies for Potential Savings

Year-end tax planning can make a significant difference when filing your 2025 return. Now’s the time to check if you can take advantage of last-minute deductions or credits.

Consider:

Tax-loss harvesting: Offset capital gains by selling investments that have declined in value.
Charitable giving: Donations made by December 31 may qualify for a tax deduction.
Flexible Spending Accounts (FSAs): Use remaining funds before they expire.

Consulting your financial advisor or tax professional before year-end can help ensure you’re maximizing your available savings opportunities.

3. Celebrate Financial Wins and Set New Goals for 2026

Before diving into the new year, take time to acknowledge your financial progress. Whether you paid down debt, grew your investment portfolio, or stuck to your budget, every achievement matters.

Then, set your sights on 2026:

Revisit your long-term goals (retirement, education, major purchases).
Adjust your budget or investment strategy based on this year’s performance.
Create SMART financial goals—specific, measurable, achievable, relevant, and time-bound.

Pro Tip: Write down your top three goals for 2026 and review them quarterly to stay motivated and on track.

December isn’t just about closing the books on another year—it’s about setting the stage for new opportunities ahead. A few intentional steps now can help you finish strong and enter 2026 with clarity and confidence.

Ready to review your year-end financial strategy? Contact us today!

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Disclosures: Investment advisory services offered through BFG Wealth Management, a Registered Investment Advisor. This material is for informational purposes only and should not be considered personalized financial advice. Please consult your insurance, financial, or tax professional regarding your specific circumstances.