Year-End Financial Planning: 5 Steps to Prepare for 2026

Oct 17 2025 | 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 ensure 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 this five-step year-end checklist, and then reach out to let us know how we can help.

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 both 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.

If you could adjust one timeline without constraint, what would it be? That question often reveals where your priorities have actually shifted.

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? Is stability more important to you right now or are you comfortable seeking growth opportunities?

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

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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, freeing up resources for future goals.

In a similar vein, make sure you understand your liquidity needs for the year ahead. If you receive equity compensation, such as company 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. Read more about this in our recent post, Making the Most of Your Equity Compensation.

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?
• Do I need to rebalance to stay aligned with my long-term strategy?

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

4. Consider Retirement and Tax Implications

The last few weeks of the year offer 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 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 anticipate opening an Individual 401(k) plan, make sure it’s established before December 31 to make contributions for the current tax year. While funding may extend into next year, the plan itself must be in place by year-end.

Backdoor Roth IRA contributions

Traditional and Roth IRA contributions can typically be made up until Tax Day, but it’s wise to plan now for cash flow. Make sure if you’re planning to enter into this transaction you coordinate with your tax preparer and financial adviser for proper reporting.

Roth conversions

If you’re considering converting pre-tax retirement assets to a Roth IRA, reviewing your income and tax projections before year-end can help determine whether this strategy fits your situation.

Tax-loss harvesting

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

Required Minimum Distributions (RMDs)

If you’re age 73 or older, don’t forget to take your RMD before year-end to avoid potential penalties. If you inherited an IRA, confirm your distribution requirements, as rules can differ depending on when the account was inherited.

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 can create potential savings.

5. Re-Evaluate Your Debt and Cash Reserves

Interest rate environments don't just affect investment returns—they influence the entire cost structure of your financial life. With rates having changed in recent years, now is the time to audit where your debt sits and whether refinancing or accelerating repayment makes sense.

Start with variable-rate debt. If you're carrying balances on adjustable-rate loans or credit cards, those costs have likely increased. Compare what you're paying in interest against what you could reasonably expect to earn elsewhere, and consider prioritizing repayment on higher-rate balances.

If you're holding excess cash beyond your emergency reserve target (typically three to six months of expenses), 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.

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, give us a call. We're ready to help you take on the year ahead and beyond with an evidence-based, relationship-focused partnership.

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