As a busy professional, it’s easy to let year-end financial planning slip through the cracks. But with the right approach, these last few months of the year can be a powerful time to make smart moves that boost your financial well-being and set you up for success in the coming year. Here’s how you can take control of your finances without adding extra stress to your already full plate.
- Optimize Your Retirement Savings
Maximizing your retirement contributions might seem like just another item on your to-do list, but it’s a simple and effective way to secure your future. If you haven’t yet contributed the maximum allowed to your 401(k) or IRA, consider doing so before the year ends. This not only helps you save more for retirement but also reduces the amount of income you’ll owe taxes on this year.
The key is to automate this process—set up automatic transfers if you haven’t already, and let your contributions grow in the background while you focus on your day-to-day responsibilities. - Streamline Your Investments
In the fast-paced world you navigate daily, your investment portfolio might not always get the attention it deserves. Take a moment to review your portfolio and make sure it still aligns with your long-term goals. Markets fluctuate, and what worked for you at the beginning of the year might need adjusting now.
If you’re unsure where to start, consider scheduling a quick check-in with your financial advisor. A 15-minute conversation can save you hours of stress down the line by ensuring your investments are working as hard as you are. - Leverage Tax-Loss Harvesting
For high-stress professionals, the idea of dealing with losses can be frustrating. But there’s a silver lining—those underperforming investments can actually reduce your tax bill. By selling off investments that haven’t done well, you can offset gains you’ve made elsewhere, lowering the taxes you owe.This strategy might sound complex, but it doesn’t have to be. Your financial advisor can guide you through the process, helping you turn a potential setback into a strategic advantage. - Maximize the Impact of Your Charitable Giving
If giving back is important to you, year-end is a prime time to make charitable donations. And with a bit of planning, your generosity can also benefit your financial situation. Consider donating appreciated assets like stocks—this allows you to avoid capital gains taxes and take a deduction for the full value of the asset.Think of it as a win-win: you’re supporting causes you care about while also making a smart financial move. A quick consultation with your advisor can help you identify the best assets to donate and ensure your contributions have the greatest impact. - Revisit Your Estate Plan
Life moves fast, and so do changes in your personal and professional circumstances. If you’ve experienced any major life events this year, such as a promotion, marriage, or the birth of a child, it’s essential to update your estate plan. Even if things have been stable, it’s worth a quick review to ensure everything is in order.By keeping your estate plan current, you can protect your hard-earned assets and provide peace of mind for yourself and your loved ones—without adding any unnecessary stress to your life. - Set Clear Financial Goals for the New Year
As you look toward the new year, take a few moments to set clear, actionable financial goals. Whether you want to save for a major purchase, build a safety net, or simply reduce financial stress, having a plan in place will help you stay focused.
Remember, your financial health is just as important as your professional success. By setting aside time to plan now, you’re investing in a future that supports both your career and your well-being.
About the Author
Melody Brady is a CERTIFIED FINANCIAL PLANNER™ and the founder of Beechmont Financial. She’s dedicated to helping busy executives like you reclaim your time and live life on your terms.
