Year-End Financial Planning: 6 Steps to Prepare for 2027

Sep 23 2026 | Back to Blog List

The end of the year has a way of sneaking up on us. One moment you’re checking summer statements; the next, you’re staring down December wondering if you did enough—saved enough, invested wisely, and planned ahead.

Year-end financial planning isn’t just about contribution limits or portfolio adjustments (although that’s part of it). It’s about making sure your financial plan still reflects your life. Have your goals shifted for the future? What new opportunities or challenges lie ahead?

As markets and life evolve, your approach should evolve, too.

At Cedar Point Capital Partners, we help clients use this season to step back, refocus, and assess whether their financial decisions continue to serve what matters most.

Whether you’ve experienced a major life change or simply want to start the new year on more solid footing, now’s the time for a check-in. Start by walking through our six-step year-end checklist, and then reach out to let us know how we can help.

Your Year-End Checklist

• Review your time horizon & risk tolerance
• Audit your cash flow
• Review your investment mix
• Consider retirement & tax implications
• Re-evaluate your debt and cash reserves
• Consider charitable giving opportunities

What's new for year-end 2026?

Before we get started, we'd be remiss if we didn't highlight some big tax changes already reshaping 2026 planning. Keep these in mind as you work through the checklist below.

• A higher SALT deduction cap. For 2026, the cap on state and local tax deductions  has increased to $40,400 ($20,200 if married filing separately) for filers who itemize. The deduction begins phasing down for taxpayers with MAGI above $505,000 ($252,500 if married filing separately).
• A new deduction for taxpayers 65 and older. First available in 2025 and continuing through 2028, eligible filers may claim an additional $6,000 deduction per person ($12,000 if married filing jointly and both spouses qualify). The deduction is available whether you itemize or take the standard deduction, and for those taking the standard deduction, it comes on top of the existing age-based amount. The enhanced deduction begins to phase out at $75,000 of MAGI ($150,000 for joint filers).
• A higher estate and gift tax exemption. The federal exemption rose to $15 million per person in 2026, which may warrant revisiting your estate and gifting strategy with your adviser and estate planning professional. The annual gift tax exclusion remains $19,000 per donor, per recipient.
• New Trump Accounts (Section 530A accounts) for children. Beginning in 2026, families can open and fund this new tax-advantaged account for eligible kids under 18. Eligible children born from 2025 through 2028 may qualify for a one-time $1,000 federal pilot contribution, while private contributions—including a $250 contribution from Michael and Susan Dell for certain eligible children—may provide additional funding.

Each of these comes with its own eligibility requirements, thresholds, phaseouts, and timing considerations that can meaningfully shape your year-end planning. We previously covered these changes in Your Questions About OBBBA Tax Reform, Answered — it's worth a read if any of the above applies to your situation, or reach out and we can help you understand where it may apply to your planning.

Your 6 Steps for Year-End Financial Planning

1. Review Your Time Horizon & Risk Tolerance

Your financial life plan is built on an understanding of your goals, time horizons, and risk tolerance, each of which can evolve over time. That’s why it’s good practice to reflect on them at least annually, to make sure your strategy remains aligned with your life today.

Start by revisiting your goals. Do they still reflect your priorities? Maybe retirement feels closer (or further) than it did last year. Perhaps you're thinking about helping a child with education expenses, caring for aging parents, or pursuing a long-delayed vacation.

Your risk tolerance deserves the same assessment. As you move through different life stages, your capacity and willingness to weather market swings may change. Those shifts can influence which strategies make sense and which goals remain realistic. How are you feeling about taking risks when it comes to your portfolio?

We can help you navigate all of these questions, and build a financial plan designed to support your goals in the year ahead.

2. Audit Your Cash Flow

If this step sounds like financial planning 101, that’s partly because it is—but you would be surprised how many people overlook their expenses when reviewing their financial plan.

We’re not just talking about your weekly coffees or another streaming service here. Larger, recurring expenses often reveal patterns in how your resources are allocated, including:

• Tuition or daycare payments
• Insurance premiums
• Landscaping and home maintenance services
• Club memberships or wellness subscriptions
• Premium credit card annual fees

Year-end is a great time to review your spending habits, clear out unnecessary expenses, and start the new year fresh, potentially freeing up resources for other financial goals.

In a similar vein, make sure you understand your liquidity needs for the year ahead. If you receive equity compensation from your employer, such as stock or stock options, take note of your vesting schedule and any deadlines tied to exercising those options. These details can have important tax and liquidity implications.

3. Review your investment mix

Investment portfolios naturally drift over time as gains, losses, and dividends shift the balance of your holdings. Year-end is a good time to take a closer look at your investments and make sure they still align with your long-term goals and risk tolerance.

Ask your financial adviser:

• Does my current mix of stocks, bonds, and alternatives still reflect my objectives?
• Have market movements left me over- or underexposed in any areas?
• Has a concentrated position grown to represent more of my portfolio than intended?
• Do I need to rebalance to stay aligned with my long-term strategy?

Your adviser can help provide perspective—but the key is to keep your portfolio aligned with your broader financial plan, not short-term market trends.

4. Consider Retirement and Tax Implications

The last few weeks of the year offer an opportunity to review your retirement accounts and potential tax strategies. A few items to focus on as the year winds down:

• Employer-sponsored plans (401(k), 403(b), etc.)

While you have until year-end to make elective deferrals to these powerful savings tools, some payroll systems require adjustments well before December 31. Check whether you’re on track to reach your annual deferral limit or capture your full employer match. If you’re eligible for catch-up contributions, keep in mind that beginning in 2026, certain higher earners must make those contributions on a Roth basis. If you have access to other workplace savings options, such as deferred compensation or a 457(b) plan, this is also a good time to check your contribution strategy.

• Solo 401(k) plans

If you’re self-employed and considering opening an Individual 401(k) plan, pay close attention to establishment and contribution deadlines, which can vary based on your business structure and type of contribution. To make elective deferrals for the current year, the plan and deferral election generally need to be in place by year-end, although funding and certain employer contributions may extend into the following year. A first-year rule allows sole proprietors with no employees to establish a new plan after year-end and still make elective deferrals for the prior tax year, subject to applicable filing deadlines.

• IRA contributions & conversions

Traditional and Roth IRA contributions can typically be made up until Tax Day, so there's no need to rush before December 31 — though it's still worth thinking through your approach for the year ahead. If your income is above the threshold to contribute directly to a Roth IRA, a backdoor Roth IRA strategy may be worth exploring, with proper coordination between your tax preparer and financial adviser.

If you're holding pre-tax assets in a traditional IRA or employer plan, converting some to a Roth IRA is a related but separate decision that depends on your plan's rules (for employer accounts) and your tax picture for the year. Your adviser and tax professional can help determine whether a conversion fits within your overall strategy.

• Withholding & estimated taxes

If your income or withholding changed significantly during the year—from a bonus, equity compensation, business income, investment gains, or another source—year-end is a good time to review whether your tax payments are tracking appropriately. Depending on your circumstances, you may find that you’ve paid in too much or that additional withholding or estimated payments are needed. Coordinating with your adviser and tax professional can help you determine whether any adjustments make sense before year-end and reduce the risk of an unexpected tax bill, underpayment penalties, or unnecessarily tying up cash through overwithholding.

• Tax-loss harvesting

If you have unrealized losses in a taxable investment account, year-end can be an opportune time to realize certain losses to offset your capital gains (but remember this strategy isn’t just limited to Q4). You can learn more about this tactic in our recent insights column, Tax-Loss Harvesting: A Primer for Investors.

• Required Minimum Distributions (RMDs)

If you’re subject to an RMD, don’t forget to take your RMD before year-end to avoid potential penalties. If 2026 is your first RMD year, you may generally delay that first distribution until April 1, 2027—although doing so means you’ll need to satisfy your 2026 and 2027 RMDs in the same year. If you inherited an IRA, confirm your distribution requirements, as rules can differ depending on when the account was inherited and your beneficiary status.

If you’re planning to withdraw funds from pre-tax accounts in the coming year, consider talking with your adviser about timing first. Coordinating withdrawals within your broader tax plan may help manage the resulting tax impact.

5. Re-Evaluate Your Debt and Cash Reserves

Interest rate environments don't just affect investment returns—they can influence the entire cost structure of your financial life. Year-end is a good time to audit where your debt sits and whether refinancing, accelerating repayment, or staying the course makes sense.

Start with variable-rate debt. If you're carrying balances on adjustable-rate loans or credit cards, borrowing costs can change as interest rates move. Consider the rates you're paying, along with your liquidity needs and other financial priorities, when deciding whether to prioritize repayment on higher-rate balances.

If you're holding excess cash beyond your emergency reserve target (typically three to six months of non-discretionary expenses, depending on your circumstances), consider whether that capital is truly optimized. Are you keeping it liquid out of genuine need, or out of market anxiety? Understanding the distinction can help you deploy resources more effectively across your financial life plan.

6. Consider Charitable Giving Opportunities

If charitable giving is part of your goals, year-end can be a good time to think strategically about both the timing and method of your gifts. That may be especially important in 2026, as new rules generally limit an itemized deduction to contributions exceeding 0.5% of adjusted gross income (AGI).

At the same time, taxpayers who take the standard deduction may now deduct up to $1,000 of qualifying cash contributions ($2,000 for married couples filing jointly).

Depending on your circumstances, strategies such as donating appreciated securities, using a donor-advised fund, or making a qualified charitable distribution (QCD) from an IRA may be worth considering. IRA owners age 70½ or older can make QCDs directly to eligible charities—up to $111,000 in 2026—and those distributions can also count toward RMDs when applicable. Your adviser and tax professional can help you evaluate how different giving strategies fit within your broader financial and tax plan.

Schedule Your Total Financial Checkup

We are a little biased on this point, but you should find a trusted partner who can help you chart a path toward your financial life goals. With the complexities that come with managing wealth, it pays to get help building and sticking to your plan. You see your dentist at least once a year (hopefully)—why not your financial adviser?

If you're ready to hop off the treadmill of chasing the next big thing and build a more solid financial foundation, let's start the conversation. We're ready to help you take on the year ahead and beyond with an evidence-based, relationship-focused partnership.

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