As the year wraps up, most of us start thinking about our personal “to-do” lists—holiday travel, family gatherings, and setting goals for the new year. But this season is also one of the most important times to review your financial planning strategy, tax situation, and investment positioning.
At GenWealth, we like to think about year-end planning in two columns:
- Immediate personal finance action items, and
- Long-term, big-picture financial moves that protect your independence beyond just next year.
Here’s a clear, practical end-of-year financial checklist for 2025 to help you finish the year with confidence.
1. Handle These Immediate Personal Finance Moves Before December 31
✅ Take Your Required Minimum Distributions (RMDs)
If you are age 73 or older (under current IRS rules), you must take your Required Minimum Distribution (RMD) from most retirement accounts each year. Failing to do so can still result in a penalty of up to 25% of the amount you were supposed to withdraw—and you will still owe income taxes on the distribution.
Why this matters: Missing an RMD is one of the most expensive planning mistakes we see because the penalties are severe and completely avoidable.
✅ Use Smart Tax Optimization Strategies
Year-end is prime time for tax loss harvesting and income-reduction strategies:
- Harvest investment losses to offset realized capital gains
- Use your annual gift tax exclusion of $17,000 per recipient for 2025
- Consider bunching charitable donations into one tax year
- Prepay deductible expenses when appropriate
These strategies may help reduce your taxable income and improve after-tax investment returns.
2. Big-Picture Financial Moves That Protect Your Future
✅ Update Your Estate Planning Documents
Life changes quickly, and your estate planning documents should keep up. This includes:
- Wills
- Trusts
- Powers of Attorney
- Healthcare directives
Your documents should reflect your current family situation, asset levels, and existing tax laws. Outdated estate plans can cause unnecessary taxes, delays, and confusion for your loved ones.
By the way, we’ve got a special through December 31st for $200 off your (already affordable) estate plan through GenWealth. Want to schedule your appointment? Click here.
✅ Review Insurance and Personal Risk Exposure
Risk management is a core pillar of true financial independence. At year-end, review:
- Home and auto insurance
- Umbrella liability coverage
- Life insurance needs
- Cybersecurity and online financial safety
Cybercrime is becoming one of the fastest-growing threats to families’ finances. A simple audit of your online accounts and financial platforms can uncover weak passwords, outdated security settings, and unnecessary vulnerabilities.
3. Staying Informed on the Economy and Markets
One of the most common questions we hear from clients in our meeting rooms is:
“How do you feel about everything going on in the world right now?”
Here are several economic trends shaping our current outlook:
📈 Corporate Earnings Remain Strong
About 83% of publicly traded companies continue to exceed earnings expectations, showing continued resilience in corporate America.
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💻 Technology Spending Is Surging
More than half a trillion dollars has been committed to technology investments, signaling long-term confidence in innovation, artificial intelligence, cybersecurity, and infrastructure upgrades.
📉 Interest Rate Uncertainty Remains
While the Federal Reserve has begun cutting rates, future direction remains unclear. Inflation, employment data, and global economic pressures will continue to influence policy decisions.
🌏 Trade Relations with China Have Stabilized
A recent truce in U.S.–China trade tensions has reduced the immediate risk of economic shock tied to tariffs and global supply chain disruptions.
4. Our Current Investment Positioning
Based on current economic conditions, corporate earnings strength, and global risk factors, we are presently advising many clients to remain slightly overweight in U.S. equities, particularly large-cap stocks.
This approach reflects:
- Strong corporate balance sheets
- Continued consumer spending
- Ongoing innovation in technology and infrastructure
- Relative economic stability in the U.S. compared to many global regions
That said, every portfolio should be tailored to your personal goals, time horizon, and risk tolerance.
Final Thoughts: Finish 2025 Strong
End-of-year planning is about far more than taxes or market performance. It is about making sure your money is aligned with your life, your family, and your future.
From required minimum distributions and tax strategies to estate planning, insurance reviews, and investment positioning, these year-end decisions can have lasting impacts well beyond December 31.
If you would like help reviewing your year-end financial checklist, tax strategy, or investment allocation, schedule a complimentary strategy session with GenWealth today. Together, we will make sure your plan is built to support your version of true financial independence.
This material is for general information and educational purposes only and is not intended to provide specific advice or recommendations for any individual. Investing involves risk including the loss of principal. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. GenWealth Financial Advisors and LPL Financial do not provide legal advice or tax services. Please consult your legal advisor or tax advisor regarding your specific situation.
