With 2026 just around the corner, now is the time to review your financial picture. Did you experience notable changes in your personal or professional life this year? These events often require year-end adjustments to your financial plan to save money and reduce stress next tax season.
💰 Year-End Tax Planning
Focus on the "One Big Beautiful Bill Act" (OBBBA) Impact. As your financial advisor, a critical discussion point has been how the recent OBBBA legislation affects tax planning. Reviewing its impact now is essential to avoid surprises when filing your 2026 return (for the 2025 tax year).
Standard Deduction Review: The new standard deduction amounts for the 2025 tax year are significant: $15,750 for single filers and $31,500 for married couples filing jointly.
The OBBBA also introduced an Enhanced Deduction for Seniors (age 65+), which can bring the total deduction up to $23,750 for single filers and $46,700 for joint filers (subject to income phase-outs).1
If your itemized deductions (like mortgage interest, state/local taxes, and charitable contributions) might exceed the new, higher standard deduction, start gathering your receipts and paperwork now.
📈 Investment Portfolio Check
After a volatile but strong year for the S&P 500, it's crucial to check your portfolio's risk level. Are you over-allocated to stocks now? Consider Tax-Loss Harvesting (selling investments at a loss to offset gains) or rebalancing to secure profits and realign with your long-term goals. Don't fall into "set it and forget it" mode!
🛡️ Insurance and Protection
Home and Auto Insurance Checkup: Large premium increases were a trend in 2025. Has your coverage kept up with the replacement value of your home and car? Review your policies to ensure they are the right fit.
Action Item: Click here for a no-obligation policy review and quotes:https://www.ipcginsurance.com/quotes/tjd-financial
Life Insurance and Estate Review: Is your life insurance coverage still adequate for your family's current needs? If you have a cash-value policy, it is vital to FULLY understand the terms and how it integrates with your overall financial plan.
📝 Estate Strategy
Update Beneficiary Designations: While reviewing your estate strategy, the most important (and easiest) step is confirming your beneficiary designations on retirement accounts (401k, IRA) and insurance policies. These designations supersede your will! If you've had a life event (marriage, divorce, new child), double-check that these assets are structured to go where you intend. Also, ensure your will and other documents remain valid and up-to-date.
⏳ Final Thought: Don't Delay!
Don't Delay: The Deadline is December 31st! Many of these time-sensitive financial moves (like tax-loss harvesting, RMDs, and 401k contributions) must be completed by December 31, 2025. Don't let New Year's Eve festivities distract you. Taking these steps now can significantly improve your short-term tax bill and your long-term financial security.
Sources:
- IRS.gov, 2025