Smart Year-End Financial Moves for Your 50s and 60s
It is hard to believe 2025 is coming to a close. As the year winds down, it’s an ideal time to take stock of your financial picture and make some strategic moves that can strengthen your retirement outlook. Whether you’re in your peak earning years or already transitioning into retirement, a few focused steps now can help you enter the new year with clarity and confidence.
- Review Your Retirement Contribution Strategy
If you’re still working, double-check your retirement plan contributions. Individuals age 50 and older can take advantage of catch-up contributions in IRAs and workplace plans. Maximizing these can meaningfully boost your savings in the critical decade or two before retirement.
- Evaluate Required Minimum Distributions (RMDs)
If you’re 73 or older, be sure your RMDs are on track to be withdrawn before year-end to avoid costly penalties. Even if you’re not yet required to take them, projecting future RMDs can help you plan for tax-efficient withdrawals in upcoming years.
- Consider a Roth Conversion
Year-end is a good time to assess whether converting a portion of pre-tax retirement savings to a Roth IRA makes sense—especially if your income is lower than usual or if you expect higher tax rates in the future. A carefully timed conversion can improve long-term tax flexibility.
- Optimize Charitable Giving
If charitable giving is part of your financial plan, look into tax-efficient strategies like donating appreciated securities or making a Qualified Charitable Distribution (QCD) directly from an IRA if you’re 70½ or older. These approaches may help reduce taxable income while supporting causes you care about.
- Revisit Your Investment Allocation
Market movements throughout the year may have shifted your portfolio away from your target allocation. A year-end rebalance allows you to realign with your risk tolerance, income needs, and time horizon as you move deeper into your retirement years.
- Check Your Health-Related Accounts
If you have a Health Savings Account (HSA), review contribution totals and use the remaining weeks to fund it if you haven’t maxed out. For Flexible Spending Accounts (FSAs), make sure to use any funds that won’t roll over.
- Update Beneficiary Designations and Estate Documents
A quick review of beneficiaries on retirement accounts, insurance policies, and estate planning documents helps ensure your intentions are up to date—especially if you’ve experienced major life changes in recent years.
Taking these steps before December 31 can set the stage for a smoother, more secure financial year ahead. As always, consider speaking with a financial professional to tailor these strategies to your personal situation.
We wish you and your family a very safe and healthy New Year!