Smart Year-End Financial Moves to Consider in 2025
By Matt Held, CFP®
As 2025 winds down, now is an ideal time to take a step back and evaluate your financial picture. Even small adjustments made before December 31 can have a meaningful impact on your taxes, retirement readiness, and overall financial well-being.
Our team is proactively reviewing each client’s situation, but here are a few key areas we encourage everyone to consider as we head into year-end.
1. Make the Most of Retirement Savings Opportunities
Contribution limits continue to increase, giving savers more room to boost their retirement plans:
- 401(k) contributions: Individuals under age 50 can contribute up to $23,500 in 2025. Those age 50 and older can take advantage of catch-up contributions, bringing their total to $31,000.
- Special super-catch-up for ages 60–63: Savers in this age group may contribute an additional $11,250, making their total annual contribution $34,750.
Even if you can’t maximize your contribution, increasing it even slightly can make a meaningful long-term difference—especially with compounding working in your favor.
2. Revisit Your Tax Strategy for 2025
Several tax law changes took effect this year, and the right planning can help you take full advantage:
- SALT deduction increase: The cap on state and local tax (SALT) deductions has risen from $10,000 to $40,000, which may make itemizing more beneficial for some households.
- New senior tax deduction: Individuals over age 65 may qualify for an enhanced $6,000 deduction per person, subject to income phaseouts.
- Charitable giving considerations: If you plan to make meaningful charitable gifts, 2025 may be an advantageous year—especially for those in higher tax brackets. Strategies like gifting appreciated stock or using a donor-advised fund (DAF) can help maximize your impact and your deduction.
We can help you evaluate whether itemizing makes sense and which tax-efficient strategies align with your broader financial plan.
3. Don’t Overlook Your Health Accounts
If you have a health savings account (HSA), try to contribute as much as possible before year-end. For 2025, limits are:
- $4,300 for individuals
- $8,550 for families
- An additional $1,000 catch-up for those age 55+
HSAs are one of the most powerful savings vehicles available because they offer triple tax benefits: deductible contributions, tax-free growth, and tax-free withdrawals for qualified expenses.
Also, review your flexible spending account (FSA) to ensure no funds are left unused if your plan does not allow carryovers.
4. Review Your Investment and Income Picture
Year-end is an excellent time to review gains, losses, and upcoming tax obligations:
- Mutual funds may distribute capital gains in December, which can affect your taxable income.
- If you exercised stock options or had restricted stock vest this year, double-check your tax withholdings; many plans withhold only 22%, which may not be enough.
- With strong equity performance this year, harvesting gains or rebalancing may help keep your portfolio aligned with your long-term strategy.
We can walk you through your investment picture and identify opportunities for tax efficiency.
5. Consider Upcoming Milestones and Life Changes
Your financial needs evolve as your life evolves. Tell us if any of the following occurred this year, as they may affect your plan:
- A new inheritance or major financial gift
- The sale of real estate or another large asset
- A new child or adoption
- A change in employment or income
- A family member who now needs care
Age-based milestones (e.g., Social Security eligibility, Medicare enrollment, or required minimum distributions) also play a role in planning as you approach them.
Download Your Full Year-End Checklist
To help you stay organized and ensure nothing is overlooked, we at Clarity Wealth Management have put together a comprehensive 2025 Year-End Financial Checklist. It covers all the key areas: tax planning, retirement, charitable giving, investments, and more.
By reviewing these items now, you can finish the year strong and enter 2026 with confidence in your financial plan.
Interested in a no-obligation, icebreaker call? Schedule online here, call (513) 278-9420, or email Info@ClarityWealth.org.
Frequently Asked Questions
What qualifies as a smart year-end financial decision in 2025?
A smart year-end financial move could include increasing retirement or HSA contributions, confirming your tax withholdings still align with your income, evaluating itemizing under the higher SALT cap, or planning charitable gifts strategically so they support both your taxes and long-term goals.
Why should year-end financial planning matter even if I already have a strategy in place?
Year-end financial planning matters because new laws, investment activity (like December capital gains distributions), and life changes can shift your tax bill or retirement trajectory. A brief, intentional review with a coordinated advisor—like the team at Clarity Wealth Management—helps you adjust without derailing what’s already working.
How do I know if my year-end financial checklist is actually helping me keep more money vs. just creating more tasks?
Your year-end financial checklist is working if each item you check has a clear purpose: higher savings, lower tax exposure, fewer surprises, and better alignment with 2026. When every action ties back to your plan, you gain momentum, simplify decisions, and keep more of your hard-earned money where it belongs.
About Matt
Matt Held, CFP®, is the lead advisor and a founding partner of Clarity Wealth Management, a boutique firm based in Cincinnati, OH. Since entering the industry in 2006, Matt has helped corporate executives, professionals, and business owners uncover opportunities and build long-term financial strategies. Driven by a desire to control his own future and create a lasting brand, Matt co-founded Clarity Wealth Management in 2012. His mission was to build a firm that would provide truly personalized guidance—and become a legacy for his own family. Today, Clarity serves about 100 households and focuses on helping clients simplify and navigate complex financial decisions, particularly those involving equity compensation, tax planning, and executive retirement.
Matt’s approach is rooted in trust, loyalty, and hard work. As a CERTIFIED FINANCIAL PLANNER® professional, he is deeply committed to long-term relationships and believes that clarity doesn’t mean predicting the future, but having the confidence that your plan can handle whatever comes your way.
Outside of work, Matt enjoys time with his wife, Abby, and their twins, Henry and Kinsley. Whether it’s watching sports (they love their Ohio State Buckeyes), hitting the slopes out West, or squeezing in a workout, he’s passionate about staying active and present. He’s also a proud graduate of Moeller High School and The Ohio State University. Matt holds Series 7 and 66 licenses, is licensed for health insurance, and earned his CFP® certification in 2012. He has been named a Five Star Wealth Manager in the Cincinnati area since 2013.* To learn more about Matt, connect with him on LinkedIn.
*2013-2018 and 2020-2024 Five Star Wealth Manager Award, created by Five Star Professional. The 2024 award was presented in September 2024 based on data gathered within 12 months preceding the issue date. Advisors pay a fee to hold out marketing materials. Not indicative of advisor’s future performance. Your experience may vary. For more information, please visit www.fivestarprofessional.com.
