5 Things Individual Investors Should Do Before Year-End
Q4 is a great reset point. Markets have had time to run, tax numbers are coming into focus, and there is still enough calendar left to make changes that matter. Here is how I would approach the final stretch, written the way I talk to clients: clear, calm, and practical.
1) Rebalance to the mix that actually fits your life
All year long, winners and losers nudge your portfolio away from your target. By October, a portfolio that was meant to be sixty percent stocks and forty percent bonds can quietly drift to seventy thirty. That extra risk feels fine when markets are up and feels awful on the first down week.
Start by pulling a simple snapshot of your current weights across U.S. stocks, international stocks, bonds, and cash. Compare it to your target. Use new contributions and dividends first to close the gap. If you still need to sell something, be mindful of taxes and use the proceeds to bring the whole portfolio back to your written target. Rebalancing is not market timing. It is maintenance, like rotating your tires before a long road trip.
2) Get tax smart before December 31
Small tax decisions compound, and Q4 is the window when they count for this year.
Loss harvesting comes first. If you realized gains earlier in the year, realizing a loss can offset them. Avoid the wash sale rule by swapping into a similar, not identical, holding so you keep market exposure while the clock runs.
Gains management is next. If your tax bracket is unusually low this year, intentionally realizing a modest amount of long-term gains can make sense. If you expect a higher bracket next year, think about deferring. Keep an eye on mutual fund capital gains distributions in late November and December so you do not buy a fund right before it pays out a taxable distribution.
Charitable giving is the third lever. Donating appreciated shares can avoid capital gains and still create a deduction if you itemize. A donor-advised fund lets you bunch several years of giving in one tax year and grant to charities over time. If you are at least age seventy and a half, a qualified charitable distribution from an IRA can be a clean way to give while keeping the withdrawal out of adjusted gross income.
None of this requires heroic moves. It does require looking at your realized gains and losses now, deciding which lot to sell, and getting the paperwork moving well before the holiday rush.
3) Max the right accounts while you still can
There are contribution limits and there are paychecks left in the year. Line the two up.
Check your workplace plan first. Increase deferrals so you land on the IRS limit by your final paycheck. If you are fifty or older, confirm the catch-up amount is on track as well. Ask HR how the match works so you do not accidentally miss dollars by front loading too aggressively.
Health accounts come next. Top off your HSA if you have one since contributions reduce taxable income and can grow for future medical costs. Review your FSA balance and deadlines. Many plans are use it or lose it at year end or allow only a small carryover or short grace period.
IRAs are the last piece. You technically have until the tax filing deadline next year to contribute, but planning the cash flow now keeps you from scrambling later. Decide whether dollars should go to a traditional IRA, a Roth IRA, or to taxable savings based on your bracket and your broader plan.
4) Handle distributions and clean up beneficiaries
Penalties are easy to avoid if you schedule distributions now and confirm your designations.
If you are in required minimum distribution territory, verify the amount and set the withdrawal to run before December 31. If it is your first RMD year and you delayed, remember that taking it by April 1 of the following year can force two withdrawals into one tax year, which can bump your taxes and affect Medicare premiums. If you have an inherited IRA, confirm your distribution schedule under current rules so you do not face surprise penalties later.
While you are in the accounts, check beneficiaries on retirement plans, IRAs, life insurance, and any transfer-on-death registrations. Make sure account titling matches your estate plan. Beneficiary designations pass outside of your will, so a two-minute review can prevent months of cleanup for your family later.
5) Write down your rules for next year
A written plan beats a pile of good intentions. Take an hour and make a one-page playbook for 2026.
Start with your target allocation and the bands around it. For example, you might rebalance any time a major asset class drifts more than twenty percent from its target weight. Add your monthly contribution plan by account so you know what amount moves where and on which day. If you are retired, map out which account pays which bill and how much cash you want in reserve so you are not forced to sell during a bad week.
Build a simple tax calendar. Put estimated tax dates on it, your charitable timing, and any planned Roth conversions. Add a small section called when markets drop that lists the steps you agree to follow before you make a decision in a stressful moment. The goal is not to predict the next headline. The goal is to remove as much guesswork as possible when emotions are loud.
Dates worth circling
December 31 is the deadline for most year-end actions such as RMDs, gifts of appreciated securities, and realizing losses or gains. Medicare open enrollment runs from October 15 through December 7. The final estimated tax payment for this tax year, if required, is due January 15. Health insurance open enrollment on the exchanges typically begins November 1.
Bringing it together
You do not need to overhaul everything. You need a repeatable finish to the year. Bring your portfolio back to its target so risk matches your real life. Use the tax code thoughtfully. Fill the right buckets while you still can. Take required distributions and confirm your beneficiaries. Put your rules for next year in writing so your plan is steadier than the headlines.
If you want a second set of eyes on your allocation, your tax moves, or your withdrawal plan, you can book a short intro meeting at goldenacrewealth.com A calm tune-up now is worth a lot of peace in January.