By MPWR Finance • Updated Oct 2025 • Read time: 8 min

Before the calendar flips, these five pragmatic moves can reduce taxes, tighten your allocation, and set you up for a stronger 2026.

The 5 Moves

1. Max out retirement contributions — IRAs and 401(k)s reduce taxable income and compound tax‑deferred returns
2. Harvest tax losses — sell losers to offset gains, respecting the wash‑sale rule
3. Rebalance your portfolio — align to your target allocation and lock gains from overweight positions
4. Review insurance and estate paperwork — update beneficiaries and confirm coverage limits
5. Set financial goals for 2026 — savings targets, tax planning steps, and investment priorities

Step‑by‑Step Implementation

For each move, we provide a short checklist to follow and a recommended timeline to complete before December 31st.

• Retirement contributions: confirm employer plan limits and schedule a final contribution before payroll cutoff
• Tax‑loss harvesting: run loss reports, tag candidate positions, and execute sales with replacements
• Rebalancing: run portfolio drift report and use cash flows or partial trades to rebalance
• Insurance: verify policy documents and beneficiary names
• Goals: export net worth snapshot and set measurable KPIs

Downloadable Checklist

Download our printable year‑end checklist to track progress: Download PDF

FAQ

Can I still make 401k contributions for 2025 after Dec 31

Employee elective deferrals must be made by Dec 31; employer contributions may follow a different schedule — check plan rules and payroll deadlines.

How often should I rebalance

Annually is sufficient for most investors; use thresholds (e.g., +/-5%) if you prefer rule‑based rebalancing.

Author: MPWR Finance • Tip: consult tax and retirement advisors for personal advice.