Disclaimer: Attached to this page is a link to Vanguard’s “Year-End Checklist,” which I find to be a comprehensive and thoughtful resource for planning. If you are a client of East Franklin Capital, chances are we’ve already completed much—if not all—of your year-end planning. So, the information below is really meant to help you start thinking ahead for next year!
Let’s address one hard-to-refute truth… the holidays and December (generally) are a very busy—and likely stressful—time of year. So why wait until now to make important decisions? Maybe while you’re watching the ball drop in Times Square is not the ideal moment to think about year-end planning.
“7, 6, 5… wait, did I take my RMD?!”
In reality, smart financial planning is a year-round discipline—not a December fire drill. And for those who have been reading my Pulitzer Prize–winning (just kidding), life-changing weekly articles (thank you!), you might remember that I did a piece this summer about year-end planning… and how it really should be year-round planning.
But if you’re just now tuning in, don’t worry—I’m here to make sure you think about a few major checkpoints across some key areas:
Tax Planning
Consider harvesting losses or gains strategically to manage your tax impact.
Making charitable gifts? Consider donor-advised funds or gifting appreciated securities before year-end.
If you can, max out tax-advantaged accounts: 401(k) deferrals (2025 limits: $23,500; $31,000 if age 50+), HSA contributions, and eligible IRA contributions. (1)
Retirement Planning
Annual RMD (Required Minimum Distribution) check. Age 73 is the new 70½—make sure you and your advisor or CPA are on top of this.
Roth conversions: Not right for everyone and very tax-bracket dependent, but still viable for high earners (via the “backdoor Roth”) and best executed before year-end.
Investment Planning
Rebalance your portfolio to stay aligned with your target allocation—not your gut feelings.
This shouldn’t only happen at year-end… but if it’s been a while, now is a good time to confirm your investments still match your goals and objectives.
Watch for concentration risk: don’t let a single stock or fund with a big gain take on an outsized role in your portfolio. (We covered this in a Weekly Whiteboard titled “The Curious Case of the 2% Market Drop Opportunity” this November.) (2)
Estate & Legacy Planning
Consider using your annual gift exclusion ($19,000 per giver per recipient in 2025).
Review and update beneficiary designations—especially after major life changes (marriage, divorce, new kids, new pets… okay, maybe not pets).
Are there organizations you’d like to support before year-end? Give intentionally and with purpose—it may help on taxes too.
General Items
If you have a Flexible Spending Account (FSA), make sure you understand whether unused funds roll over or expire—use it or lose it!
Late in the year can be a good time to review insurance policies—life, disability, umbrella—to ensure they still align with your needs.
Keep in mind, this isn’t meant to be a fully comprehensive list—far from it. For something more detailed, you can reference the Vanguard checklist attached below, which covers a wider range of year-end considerations.
To wrap up: while I encourage you to think about planning all year long, late November and early December can serve as a great reminder point… but they shouldn’t be the starting line. If you’re feeling overwhelmed, I get it. This stuff is complicated—and the rules keep changing. But that’s exactly why we’re here. A proactive advisor can help make next December feel a lot less frantic.
Who knows—next year, maybe you’ll get to focus on less stressful things… like family events!
