Year-End Financial Moves That Can Save You Money

By: R. Travis Evans, CFP®

As the year draws to a close, it’s easy to get caught up in holiday plans and forget about your financial plan. But the final weeks of the year are often when some of the most impactful financial decisions can be made—especially for those nearing or already in retirement. A few smart year-end moves can help lower your tax bill, strengthen your long-term plan, and set you up for a smoother transition into the new year.

Make the Most of Charitable Giving

If charitable giving is part of your values or estate strategy, year-end can be the most efficient time to give. By donating appreciated assets such as stocks or mutual funds held more than a year, you can avoid capital gains taxes while still claiming the full deduction for the fair market value (subject to AGI limits—generally up to 30% of AGI for appreciated securities and 60% for cash gifts to qualified charities).For retirees already taking Required Minimum Distributions, a Qualified Charitable Distribution (QCD) from an IRA allows you to direct up to $108,000 per person in 2025 to charity—satisfying your RMD without adding to your taxable income. That’s a win for both your cause and your cash flow.

Harvest Tax Losses Before December 31

Markets don’t move in a straight line, and sometimes that volatility can be turned into opportunity. Tax-loss harvesting means selling investments that are down to offset realized gains elsewhere in your portfolio. The strategy can also reduce up to $3,000 of ordinary income per year ($1,500 if married filing separately), with any excess losses carried forward indefinitely. Careful execution is key here: wash-sale rules prevent repurchasing a “substantially identical” investment within 30 days, so this is a good area to coordinate closely with your advisor before making trades.

Consider a Strategic Roth Conversion

When markets are down or your income is temporarily lower—such as in the gap years between retirement and the start of Social Security or RMDs—it may be an opportune time to convert part of a traditional IRA to a Roth IRA. Conversions create a taxable event now but allow future growth and withdrawals to be tax-free. Done thoughtfully, partial conversions can help balance your tax brackets across multiple years and reduce the impact of future RMDs. The window closes at year-end, so acting before December 31 gives you control over which year the income is recognized.

The Bottom Line

A well-timed combination of charitable giving, tax-loss harvesting, and Roth conversions can make a meaningful difference in your retirement strategy—but the right approach depends on your overall income, portfolio mix, and long-term goals.

Now is the time to evaluate your options and fine-tune your plan while there’s still time to act for 2025.

Ask us to run your personalized year-end planning report—we’ll help you identify which strategies make the most sense for your situation and capture every advantage before the clock runs out.