How to Drive Financial Momentum into Next Year

Steve M. Lindquist, AIF®

December 02, 2025

Your peak earning years are a powerful time to build financial momentum—but it takes more than income. Strategic planning and informed decisions are key. As the year ends, consider these five areas to strengthen your financial foundation:

1. Investments
Rebalance your portfolio to align with your goals and risk tolerance. If you hold employer stock or RSUs, check for over-concentration. Life changes may also affect your comfort with risk—discuss this with your advisor.

2. Tax Efficiency
Act before December 31 to impact this year’s taxes.

Use tax-loss harvesting to offset gains.
Max out contributions to 401(k), IRA, and HSA accounts.
Spend your FSA balance or check for grace periods.
Consider charitable giving via a Donor-Advised Fund for flexibility and tax benefits.

3. Insurance Review
Growing income and responsibilities mean evolving coverage needs.

Compare health plans during open enrollment.
Ensure life and disability insurance match your current situation.
Consider an umbrella policy for added liability protection.

4. Education Planning
Whether it’s private school or college, plan ahead.

Make 529 contributions for potential state tax benefits.
Understand new rollover rules to Roth IRAs.
Use calculators or consult your advisor to forecast costs.
Consider how current income affects future financial aid.

5. Set Goals for Next Year

Update your budget and automate savings.
Take a net worth snapshot to track progress.
Refresh estate documents and beneficiary designations.
Explore opportunities for career or income growth.

The end of the year is the perfect moment to step back, review, and refine your approach. A few proactive decisions now can help you take full advantage of your earning years, reduce your tax burden, and build wealth.

Together we can personalize these strategies and uncover opportunities you may not have considered. With thoughtful planning, you can enter the new year ready to grow.

Rebalancing may be a taxable event. Before you take any specific action be sure to consult with your tax professional.

Cetera exclusively provides investment products and services through its representatives. Although Cetera does not provide tax or legal advice, or supervise tax, accounting or legal services, Cetera representatives may offer these services through their independent outside business. This information is not intended as tax or legal advice.

Generally, a donor advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it. However, the donor, or the donor's representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account. Donors take a tax deduction for all contributions at the time they are made, even though the money may not be dispersed to a charity until much later.

Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer's official statement and should be read carefully before investing. Investors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult their financial or tax advisor before investment in any state's 529 Plan.