The "Future You" Will Thank You
A Simple Year-End Financial Reset
Why a quick review now beats a panic later
Let’s be honest: December is chaotic. Between holiday shopping, travel plans, and trying to wrap up work before the New Year, sitting down to look at your finances probably feels like the last thing you want to do.
But here’s a behavioral finance truth: Clarity cures anxiety.
Taking just 20 minutes now to run through a simple checklist can save you money on taxes, keep your portfolio healthy, and let you enjoy the holidays with true peace of mind. Think of this not as "homework," but as a gift to your future self.
Here are the essential moves to consider before the ball drops on New Year’s Eve.
1. Don’t Tip the IRS More Than Necessary
It’s not just what you make; it’s what you keep. Taxes are often the biggest drag on a portfolio’s long-term performance.
Tax-Loss Harvesting: If you have investments in taxable accounts that are down, you can realize those losses to offset capital gains. It’s a smart way to turn a market negative into a tax-bill positive.
Maximize "Future You" Funds: Have you hit the limit on your 401(k) or IRA? If you have the cash flow, topping these off reduces your taxable income now and builds wealth for later.
2. The Art of Rebalancing
This is the cornerstone of a disciplined, non-speculative investment philosophy. Over the years, some parts of your portfolio (like stocks) may have grown faster than others (like bonds), throwing your target allocation out of whack.
Rebalancing forces you to do what feels uncomfortable but works: sell high and buy low.
By trimming the "winners" that have outgrown their target size and buying the underperformers, you manage risk and keep your portfolio aligned with your long-term goals—regardless of what the market news cycle is screaming today.
3. Handle the "Must-Dos" (RMDs)
If you are of the age for Required Minimum Distributions (RMDs), this is a non-negotiable deadline. The penalty for missing an RMD is steep (up to 25% of the amount not withdrawn). Double-check that this is done so you don't hand your hard-earned money over to the government in penalties.
4. Review Your "Why"
Finally, look beyond the numbers. Has your life changed this year?
Beneficiaries: Did you get married, divorced, or have a grandchild? Make sure your accounts reflect your current wishes.
Giving: If generosity is part of your plan, getting donations in by December 31st ensures you get the deduction for this tax year.
Let’s Finish Strong
You don’t need to predict the future to be prepared for it. You just need a disciplined process.
Looking for More Guidance? I've spent my career helping clients determine correct portfolio allocations and rebalancing strategies for their lives. If you have $1 million or more of investible assets and want to ensure your year-end plan is solid, let's connect and strategize your best move forward.
Let’s start the conversation.
Whether you're navigating these year-end deadlines for the first time or looking to integrate them into your broader wealth strategy, we’re here to provide guidance, illustrations, and real-world insight to help you move forward with confidence.
Concerned about missing a critical tax opportunity or leaving your portfolio exposed to unnecessary risk? Let's start the conversation about how to create a comprehensive strategy that protects you and your loved ones.
Check out The Financial Fire Drill. Learn how building a strong financial future starts with assessing your situation–identifying gaps, risks, and blind spots. https://www.stahlneckergroup.com/firedrill
