At the risk of understatement, it’s been an eventful year. As we head into the final weeks of 2025, it’s a great time to pause and make sure your financial plan is on track. Many opportunities and deadlines disappear once the calendar turns; paying attention now can make a meaningful difference.

Here are areas worth reviewing before December 31:

• Plan for Next Year’s Expenses

If you anticipate large expenses in 2026—such as tuition, a home project, or travel – it may make sense to raise cash now, especially while markets remain strong. The timing of sales can influence both your investment and tax picture.

• Look for Tax-Loss and Tax-Gain Harvesting Opportunities

If you have investments that have declined in value, harvesting those losses can help offset realized gains elsewhere. Conversely, if your income is unusually low this year and likely to rise in the future, it might make sense to harvest some long-term gains while your tax rate is lower. Your advisor or accountant can help determine if harvesting makes sense.

• Rebalance After Market Gains

After a strong year in the markets, your portfolio allocation may have drifted from targets. Rebalancing helps manage risk and can be a disciplined way to lock in gains.

• Manage Concentrated Positions

If you hold significant positions in a single company, this may be a good time to realize gains and trim your exposure, particularly now that your tax situation for the year is clearer.

• Timing Income and Deductions

Evaluate whether it makes sense to accelerate income or deductions into this year or postpone them until next year based on your expected tax bracket.

• Maximize Retirement and Health Contributions

  Confirm that you’ve contributed as much as possible to your retirement plans and Health Savings Accounts (HSAs) before year-end. These contributions can reduce taxable income and strengthen your long-term savings.

• Check Flexible Spending Accounts (FSAs)

  If you have an FSA, review your balance and eligible expenses. Some plans don’t allow unused funds to roll over, so be sure to spend what you can.

• Take Required Minimum Distributions (RMDs)

Be sure you’ve taken all required distributions from your own retirement accounts and any inherited IRAs. Missing an RMD can trigger significant penalties.

• Consider a Roth Conversion

If your income is lower this year than it’s likely to be in the future, or if you have a business net operating loss, converting some traditional IRA assets to a Roth IRA could be advantageous.

• Make the Most of Charitable Giving

Several provisions of the OBBBA take effect next year, including a floor of 0.5% of income and a 35% limit on the deduction rate for charitable contributions. It may be wise to “bunch” charitable gifts into this year. Additionally, donating appreciated stock rather than cash allows you to support the causes you care about and potentially avoid capital gains tax.

• Use Qualified Charitable Distributions (QCDs)

If you’re age 70½ or older, you can direct up to $108,000 per year from your IRA to qualified charities as a QCD. This counts toward your RMD and can reduce taxable income.

• Make Annual Gifts to Family Members

You can gift up to $19,000 per recipient in 2025 without having to file a gift tax return and without using any of your lifetime estate exemption. Consider using gifts to fund a 529 education plan or even a Roth IRA for a child or grandchild who has earned income. You could also consider gifting appreciated securities to someone in a lower tax bracket.

• Review Health Coverage Options

Medicare open enrollment runs through December 7, and Affordable Care Act (ACA) open enrollment is open through December 15. Review your coverage to make sure it still fits your needs and budget.

• Estimated Tax Payments and Withholding

If you’re behind on estimated payments, you can take a distribution from your IRA with 100% tax withholding or increase withholding on your W-2 income. The IRS treats withheld taxes as if they were paid evenly throughout the year, which can help you avoid penalties.

Let’s Make Sure You’re Ready

Thoughtful planning now can help you start the new year with clarity and confidence. If you’d like to discuss any of these strategies to understand whether they apply to your situation, please reach out to your Fulcrum Capital advisor. We’re here to help you make the most of every opportunity.