As 2025 fades, it's the perfect time to make some smart moves before the calendar flips to 2026. Think of it as a financial tune-up that could help with saving money and setting you up for success in the months ahead. Here are some things to consider.
Now is also a good time to review your investments. Did they perform as expected? Do they still match your goals? You may need to rebalance.
If you’ve had major life changes like marriage, divorce or a new baby, review the beneficiary designations on all bank and brokerage accounts. These often override what’s written in your will.
Boost your retirement savings. Consider ramping up your pretax retirement contributions before year-end. Not only will this help your future self, but it might also reduce your current tax bill. If your workplace plan allows it, you can even set up automatic increases for next year so you won't have to remember to do it later.
Use your flexible spending money. Got money sitting in a flexible spending account at work? Remember, these accounts follow a "use it or lose it" rule. Check with your HR department about your plan's specific deadlines for spending the money and submitting receipts. Whether it's that dental work you've been putting off or new prescription glasses you need, now's the time to use those funds before they disappear.
Navigate new tax changes. The recently passed laws have made several tax provisions permanent, including lower individual tax rates and higher standard deductions. However, there have also been new changes that might affect your situation. It's worth sitting down with a financial advisor or tax professional to understand how these updates impact your specific circumstances.
If you're working, consider ramping up your pretax retirement contributions. Not only will this help your future self, but it might reduce your current tax bill.
If you’re 73 or older, you’ll need to take required minimum distributions from traditional retirement accounts to avoid a 25% penalty on any amount you should have withdrawn but didn't.
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Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.