The final months of the year offer an opportunity to make thoughtful financial decisions today that can benefit you well into the future.
As the calendar moves toward December, it’s easy to focus on everything that needs to be finished before the year ends. But when it comes to your finances, this is also an important time to look ahead.
Changes in income, investments, retirement plans, and charitable giving can all influence your financial picture. And while some decisions can wait until tax season, others deserve attention before December 31.
At Generosity Wealth Management, we believe good financial planning is about more than reacting to deadlines. It’s about understanding your options, making informed decisions, and ensuring your money continues to support the life you want to live.
One way to approach your year-end review is with a simple framework we’re calling GIFT: Get Income & Finances Tax-Ready.
Four areas. Four important conversations. And an opportunity to enter the new year with greater clarity.
G — Get Organized
Before making financial decisions, it’s helpful to understand where things stand.
Consider what has changed since the beginning of the year. Have you opened new accounts? Changed jobs? Sold property? Started a business? Experienced a major life event?
Even seemingly routine changes can affect your financial and tax planning.
Start by gathering recent investment and retirement account statements, information about significant financial transactions, and any updates to your income or family circumstances.
This is also an opportunity to make sure your financial advisor and tax professional have the same information.
A question worth asking: Does my financial team have a complete and current picture of my financial life?
I — Income
Your income may look different this year than it did last year, and those differences can create planning opportunities or additional considerations.
For example, perhaps you received a bonus, realized capital gains, began taking retirement distributions, or experienced a change in business income.
Each situation can influence your overall tax picture.
Understanding your projected annual income before year-end can help your advisors evaluate whether strategies such as Roth conversions, charitable contributions, or adjustments to withholding deserve consideration.
For business owners, it’s also worth reviewing how business income and personal financial planning intersect.
A question worth asking: Has anything changed in my income this year that could affect decisions I should make before December 31?
F — Financial Accounts
Financial accounts are not something to establish once and forget.
Retirement plans, investment accounts, insurance policies, and beneficiary designations all deserve periodic attention.
Depending on your circumstances, year-end discussions might include:
- Reviewing retirement contributions and applicable limits.
- Confirming required minimum distributions have been addressed.
- Evaluating whether a Roth conversion makes sense.
- Reviewing investment gains and losses.
- Checking beneficiary designations on retirement accounts and insurance policies.
- Identifying opportunities to align investments with charitable giving goals.
One particularly important consideration is whether your beneficiary designations still reflect your intentions. These designations can determine how certain assets transfer, regardless of what your will may say.
A question worth asking: Are my accounts structured to support my current goals and the people I care about?
T — Tax Planning
Tax preparation and tax planning are not the same thing.
Tax preparation generally looks backward, documenting what happened during the year. Tax planning looks ahead, identifying decisions that may influence the outcome.
And some of those decisions need to happen before the calendar turns.
For example, depending on your circumstances, you may want to discuss charitable contributions, capital gains, retirement distributions, or the timing of certain financial transactions.
The key is coordination. Your financial advisor and tax professional can help you understand how different decisions interact rather than evaluating each in isolation.
A question worth asking: What decisions can I still make this year that may improve my long-term financial picture?
The Best GIFT Is a Thoughtful Plan
The purpose of year-end planning isn’t to make financial decisions simply because a deadline is approaching.
It’s to make sure important opportunities aren’t overlooked.
Sometimes the most valuable outcome is identifying a strategy worth implementing. Other times, it’s confirming that your existing plan remains appropriate.
Either way, there’s value in having the conversation.
At Generosity Wealth Management, we help clients connect financial decisions with their broader goals, from retirement and family security to business transitions and meaningful charitable giving.
Before the year ends, consider giving yourself the GIFT of a financial conversation. A little preparation today can help create greater clarity for tomorrow.
If you haven’t reviewed your year-end financial picture, connect with your Generosity advisor to discuss what may deserve attention before December 31.
DISCLAIMER:
This article is intended for general educational purposes and should not be considered individualized investment, tax, or legal advice. Consult your financial, tax, and legal professionals regarding your specific circumstances.