End-of-Year Financial Tips to Make a Bang in 2025
End-of-Year Financial Tips to Make a Bang in 2025
As we approach the end of 2024, it’s the perfect time to review your financial strategy to set yourself up for a successful 2025. Whether you’re a high-income professional, a business owner, or part of a dual-income household, these tips aren’t just for the ultra-wealthy—they’re designed for anyone looking to maximize opportunities and minimize surprises.
Let’s explore practical steps you can take now to save on taxes, streamline your estate plans, and ensure your financial goals stay on track.
Amber’s Story: From Overlooked Details to Financial Clarity
Amber is a single, high-income professional who rarely thinks about her finances. At our recent review, she realized she hadn’t updated her beneficiaries since she started her first job over a decade ago. Imagine if something had happened—her assets would have gone to an outdated contact.
Amber also had an inactive 401(k) sitting idle. By rolling it over into a new account, she not only simplified her portfolio but also diversified into asset classes she’d never explored before, such as Cryptocurrency and Precious Metals.
Tip: Take time to review your beneficiaries and consolidate inactive retirement accounts. These are quick wins that can make a significant difference in your financial legacy and portfolio performance.
Robert’s Strategy: Tax Optimization for Maximum Impact
Robert, a business owner with a six-figure income, wanted to lower his tax burden. Through a Roth conversion, we shifted a portion of his traditional IRA into a Roth IRA, setting him up for tax-free withdrawals in retirement.
We also implemented tax-loss trading, using losses in one area to offset gains elsewhere, saving him thousands on his tax bill. Finally, Robert increased his 2025 401(k) contributions, helping him plan ahead while benefiting from immediate tax deductions.
Tip: Whether it’s a Roth conversion, tax-loss trading, or increasing retirement contributions, strategic moves now can reduce taxes and grow your wealth long-term.
Charitable Giving: Making an Impact While Saving
Did you know that charitable giving isn’t just about generosity—it’s also a savvy financial strategy? If you’ve had a year with significant taxable gains, donating appreciated assets like stocks can offset your tax liability.
Amber chose to open a Donor-Advised Fund (DAF), allowing her to bunch two years’ worth of donations into one tax year. This maximized her deduction for 2024 while letting her grant to her favorite causes over time.
Tip: Consider charitable contributions or annual gifting to maximize your deductions while aligning your giving with your values.
Estate Planning Review: Keep It Current
Both Amber and Robert realized their estate plans hadn’t been updated in years. By revisiting their wills, trusts, and advanced directives, they ensured their documents reflected their current wishes and financial goals.
Tip: Don’t wait for a life event to review your estate plan. An annual review ensures everything is aligned and avoids leaving critical decisions to chance.
Quick Wins for the Year-End
Double-check estimated withholding: The IRS has a free tool to ensure you’ve paid enough throughout the year.
Harvest capital gains: Lock in profits at a lower tax rate while rebalancing your portfolio.
Maximize QBI deduction: If you’re a business owner, ensure you’re optimizing this 20% deduction before year-end.
Take Charge of 2025 Now
Amber and Robert transformed their finances with just a few focused actions. You can do the same. The end of the year is an opportunity to align your finances with your goals, reduce tax liability, and build peace of mind for the future.
If you’d like personalized advice to make the most of 2024 and beyond, let’s connect. Email me at jstacy@meranti.capital to schedule a consultation or share your end-of-year tips in the comments below.
Make 2025 your best financial year yet—discover your financial story!