The end of the year is fast approaching, which means it's time to get your financial house in order before 2025. This can help ease tax season stress and ensure you're set up for a smooth start to the new year. To get ahead, here are eight key financial planning tips to consider:

1. Organize Your Documents for Taxes

Tax season will be here before you know it, so now is the perfect time to start gathering important documents, like bills, bank statements, and receipts for any deductible expenses. Staying organized makes filing much easier and helps you avoid missing out on potential deductions.

2. Review Your Filing Status

Did your marital status change this year? Getting married, divorced, or welcoming a new child into your family can impact your filing status and, consequently, your tax bill. Checking your status now can help avoid surprises and possibly lead to a bigger refund.

3. Max Out Your Retirement Contributions

Have you contributed the maximum amount to your retirement accounts? For 401(k) and 403(b) plans, the limit for 2024 is $23,000. If you're 50 or older, you can take advantage of catch-up contributions, adding an extra $7,500. Looking ahead, those aged 60-63 can contribute even more in 2025 with an additional $10,000 catch-up limit.

4. Check Your Estate Plan

Life changes can also affect your estate plan. Now is a good time to review your will, trusts, and beneficiary designations to ensure they align with your current situation and goals. Updates to estate tax laws could also mean adjustments are needed.

5. Review Insurance Coverages

Open enrollment is coming up for many employer benefit plans, so it’s a great time to review your health, life, long-term care, and disability insurance. Make sure your policies provide adequate coverage, especially if you’ve had major life changes like marriage, a new baby, or purchasing a home.

6. Think About Your Investments

The end of the year is a good time to review your investment portfolio and ensure it still aligns with your financial goals. If you have any underperforming stocks, consider selling them to offset capital gains elsewhere. And don't forget—if you've sold cryptocurrency, the profits are taxable too!

7. Plan for Required Minimum Distributions (RMDs)

If you turned 73 this year, you’ll need to take your first RMD by April 1, 2025, and your second by December 31, 2025. RMDs apply to certain retirement accounts like 401(k)s and IRAs, so make sure you’re prepared to take the correct amount to avoid penalties.

8. Evaluate Your Charitable Contributions

If you plan to make charitable donations, now is the time to do it. Donations made to qualified charities can be tax-deductible, and if you itemize, this can offer significant tax savings. For those over 70½, you can also use a qualified charitable distribution (QCD) to donate up to $100,000 tax-free.

Financial health requires regular monitoring, and these year-end steps can help keep you on track for a prosperous 2025.

Schedule a consultation today to make sure your financial plan is aligned with your goals.