The end of the year always carries a special mix of reflection and anticipation. Families gather, homes fill with familiar sounds, and calendars start to feel heavier as the holiday season begins. It is a natural time to think about what went well, what surprised you, and what you want to improve next year.
It is also one of the best times to give your financial life a thorough checkup. Many people wait until tax season or until a big life event forces a review, and that creates unnecessary stress. A simple year-end routine can help you stay organized, reduce financial mistakes, and enter the new year with confidence. We see this period as an opportunity. It is a chance to take stock of your savings, your taxes, your investments, your insurance protection, and your financial goals.
1. Review Your Investment Portfolio
Markets move all year long, and that movement can quietly shift your portfolio away from the balance you originally chose. Stocks may have run ahead, bonds may have trailed, or the reverse might be true. A year-end check lets you bring everything back in line with the level of risk you’re comfortable taking. Rebalancing—trimming what has grown overweight and adding to areas that have fallen behind—keeps your long-term plan on track without reacting to noise.
While you’re reviewing your mix, look at a few other important year-end items. If possible, try to max out contributions to tax-advantaged accounts such as a 401(k), IRA, or HSA before the deadline. If you’re in or near retirement, confirm whether you owe a required minimum distribution and make sure it’s completed on time. For those who give to charity and are over 70½, a qualified charitable distribution from an IRA may help satisfy part or all of your RMD while keeping the withdrawal out of taxable income.
The Rebalancing Act
How market rallies shift your sector exposure vs. your plan.
Growth stocks have become overweight, exposing you to higher volatility.
Profits are trimmed from Growth and reinvested into Bonds/Value to restore safety.
Investors with taxable accounts may also consider tax-loss harvesting. Realizing losses in a thoughtful way can offset capital gains and help reduce taxes, as long as you stay clear of wash-sale rules. And don’t forget flexible spending accounts. Many FSAs still operate on a use-it-or-lose-it basis, so check the remaining balance and any deadlines for spending or rolling over unused funds.
Rebalancing doesn’t need to be constant. Once a year is usually enough, and many people use December as their routine checkpoint. Whether you adjust by selling and buying or simply steer new contributions toward underweighted areas, the goal is straightforward: begin the new year with a portfolio that reflects your goals, your timeline, and the amount of risk you intend to take.
2. Review and Update Beneficiary Designations
Take a moment to check the beneficiary designations on your financial accounts, including retirement plans (401(k)s, IRAs), life insurance policies, annuities, and any transferable-on-death investment accounts. This is vitally important as the named beneficiaries on these accounts will generally inherit the assets directly, regardless of what your will says. You want to be absolutely sure that the individuals (or trusts/organizations) you’ve designated are up-to-date with your current wishes.
Major life changes in the past year are a big reason to update beneficiaries. Marriage, divorce, the birth or adoption of a child, or even a death in the family can all impact who you want (or don’t want) to receive your assets. It’s unfortunately common for people to forget to update these forms. For example, an old 401(k) might still list a former spouse or a deceased parent as beneficiary if you haven’t reviewed it in years. Taking just a few minutes to update these forms now can prevent confusion, disputes, and even heartache later on.
When to Update Beneficiaries
Did any of these occur in the past year?
Check all retirement accounts (employer plans and IRAs), any workplace group life insurance, private life insurance policies, and even bank accounts or brokerage accounts that have “payable on death” or “transfer on death” designations. Most financial institutions allow you to review and change beneficiaries online or via a form. Verify both primary beneficiaries (who gets the asset first) and contingent beneficiaries (who gets it if the primary is no longer around). Make sure names are spelled correctly and contact information is current. If you’ve welcomed a new child, you might add them as a contingent beneficiary.
3. Review Your Insurance Coverage (Life, Disability, etc.)
Year-end is a great time to perform an annual insurance review. Insurance is a key part of financial security, yet it’s often overlooked. It’s not only about having coverage, but also whether your coverage amounts are still appropriate for your life situation. Over the past year, you may have experienced changes such as paying down debt, growing your family, receiving a raise, buying a new house, or increasing your assets. These changes can create gaps in your protection that you may not realize unless you review your policies.
Start with life insurance. If you have a term life policy or coverage through work, consider whether the death benefit would still adequately protect your family. Did you have another child who isn’t reflected in the coverage amount? Has your mortgage or other debt changed? A common guideline is to have enough life insurance to cover things like income replacement for a number of years, outstanding debts, and future needs (like college for kids). If your current coverage would fall short, talk to your insurer or advisor about increasing it. On the other hand, if your children are grown and independent, or debts are paid off, you might repurpose or reduce coverage accordingly.
Next, disability insurance: if you’re employed, check what disability coverage you have (short-term or long-term) and whether it’s sufficient. Disability insurance replaces income if you can’t work due to illness or injury (an often underappreciated risk). If your income has risen significantly in recent years, make sure your disability benefit would cover your needs (typically it should cover enough of your take-home pay to maintain your lifestyle). You may need a supplemental policy if the employer plan has a low cap.
Annual Insurance Checkup
Click items to mark them as complete.
Long-term care (LTC) coverage is another area worth reviewing at year-end. If you already have a policy, take a moment to confirm what it covers, how premiums have changed, and whether the terms still fit your needs. Coverage details and insurer practices can shift over time, and it’s helpful to make sure your policy still supports your broader plans, especially as you move closer to retirement and begin thinking more intentionally about potential care costs.
If you don’t have LTC coverage, year-end can also be a natural moment to think about whether planning for future care expenses should be part of your long-term strategy. Some people look into traditional LTC insurance, hybrid life/LTC options, or self-funding approaches to see what might make sense for their situation.
As part of your checklist, contact your insurance agent or log in to your policy statements. Note the coverage amounts, premiums, and any changes in terms. Ask questions if anything is unclear. By doing this now, you can make adjustments (increase coverage, switch policies, or cancel unneeded insurance) effective for the new year.
4. Set and Align Your Financial Goals for the New Year
The end of the year is the ideal time to set fresh financial goals for the upcoming year. What do you want to accomplish financially in 2026 (or the next year)? It could be building up an emergency fund, paying off a credit card, saving for a down payment, or increasing retirement contributions. Writing down these goals and creating a simple plan can dramatically improve your chances of success.
Yet, surprisingly, most people don’t have a written financial plan. In fact, only 36% of Americans have put their financial plan in writing. Those who do, however, report much higher confidence: 96% of people with a written plan feel confident about reaching their goals. aboutschwab.com.
Rather than vague resolutions like “save more money,” try to define specific targets. For example: “Save $5,000 in my emergency fund by next December,” or “Pay an extra $200 towards my student loans each month,” or “Max out my 401(k) at $X for the year.” Specific, measurable goals are easier to track.
The Value of Writing It Down
Most people don't have a plan, but those who do are much more confident.
Only a minority of Americans have put their plan in writing.
Of those with a plan, nearly all feel confident about their goals.
Once you set a goal, ask yourself: what changes do I need to make to achieve it? If your goal is to save more, you might create a monthly budget that carves out that savings amount first (pay yourself first). Set up automatic transfers to a savings account or increase your 401(k) contribution percentage in January so that the saving happens before you can spend it.
If your goal is to pay down debt, maybe automate extra payments toward the highest-interest debt, or consolidate to a lower rate if possible. For spending less, identify a couple of areas in your expenses where you can cut back (e.g., streaming services or dining out) and set a specific reduction target.
It’s also wise to align your goals with any expected life events in the coming year. Maybe you plan to move, have a child, start a business, or go back to school. These will all affect your finances, so build them into your plan. Set aside funds or adjust your saving strategy accordingly. Share your goals with your family or a trusted friend for accountability, and celebrate milestones along the way to stay motivated. Finally, consider speaking with a financial advisor if you want professional guidance in setting realistic goals and aligning them with a long-term plan.
In Conclusion
The end of the year always fills up quickly with family plans, holiday travel, and everything else that crowds the calendar, but a short financial review now can make a real difference. These steps do not need to be complicated or time-consuming. A few thoughtful updates to your accounts, insurance, and goals can help you start the new year with clarity and a sense of control.
If you feel unsure about anything or want support as you go through your checklist, we can make the process easier. A brief conversation can help you understand your options, avoid common mistakes, and feel confident that you are making decisions that fit your life. With a little attention today, you can step into the coming year feeling more organized and better prepared.
