Slipping into this crispy fall season, it’s time to lock in for the rest of the year. As we get back to business, let me be the first to welcome you to checklist season. Reviewing your affairs and finances, assessing what areas to optimize before year-end and all the to-dos before the calendar turns over.
And if at any point this list becomes overwhelming or you just wish that you had someone who could handle this for you…well, that’s where Secfi Wealth comes in. But enough of this shameless plugging. Let's get to it.
1️⃣ First up: Equity planning
With equity compensation likely being your biggest driver of wealth, let this be a key area of focus as year-end approaches.
- For those with vested but unexercised incentive stock options, now is the perfect time of year to run a tax projection and see if you can exercise any ISOs before year-end, without triggering AMT. This multi-year planning strategy can help you gain ownership of your shares for the lowest out-of-pocket costs.
- For those who have RSUs as a key part of their compensation, it’s worth reviewing your pay stubs along with your vesting schedule and withholding rates. Many employers only withhold the minimum (22%) on RSUs, which may be too low for high earners, leading to potential tax bills, penalties, and interest, come tax time.
- For the charitably inclined, it’s a great time to review your charitable giving strategy. Establishing donor-advised funds or directly donating appreciated stock are two great ways to tax-efficiently give to your favorite charitable organizations and maintain flexibility over your balance sheet. Donating appreciated stock, specifically, can help to diversify your balance sheet while eliminating the tax you would otherwise pay on the gains if you were previously donating cash.
- For the long-tenured employees or recent job changers, you should use this time to review the vesting and expiration dates on your options. Most notable if you recently left a job and have a post-termination exercise (PTE) window to consider. If your intention is to own your equity, start developing a purchase plan to exercise and buy your equity so you don’t run up against time constraints and deadlines.
2️⃣ Next up: Employer benefits
As late fall ushers in open enrollment season, it’s the perfect time to revisit your employer benefits and make sure your coverage still fits your life. A few minutes of attention can provide a year of confidence.
- For anyone who’s experienced a recent life change (marriage, children, or evolving health needs), it’s a good time to revisit your medical coverage. When you’re single and healthy, a high-deductible health plan often makes the most financial sense, especially when paired with a Health Savings Account (HSA). But as your family grows, a PPO with higher premiums but broader coverage may offer valuable peace of mind. Running a comparison of premiums, deductibles, and out-of-pocket limits can reveal the crossover point at which paying more upfront delivers better overall value.
- If your employer provides only a small amount of life and disability insurance coverage, it’s worth seeing if this coverage is adequate. You may benefit from additional protection that’s both comprehensive (higher benefit amounts) and portable (stays with you even if you change jobs).
If you contribute to a Flexible Spending Account (FSA), take a look at your balance and plan your spending before the year wraps up. A little foresight can save you from the classic last-minute scramble for over-the-counter items. - Consider scheduling those doctor visits you’ve been putting off, booking an acupuncture or physical therapy session, or picking up a new pair of prescription glasses.
3️⃣ On deck: Retirement and savings
As year-end nears, reviewing your contributions to tax-advantaged accounts can help make sure you are getting the most bang for your buck and maxing out where it makes sense.
- If you’re striving to max out 401(k) contributions, you can run a quick calculation to see if you’re on pace to max this out in 2025 ($23,500 for folks under 50, or $31,000 for individuals over 50 maxing their catch-up contribution). For pre-retirees (maybe your parents) from 60 to 63, the maximum amount is actually $34,750 - a new super catch-up.
- If you’re saving for your child’s education, revisit your 529 plan contributions. Make sure your contributions are on track to fulfill your college savings goals while utilizing state tax deduction benefits. While the details vary, more than 30 states provide state-level incentives for 529 contributions..
- For those exploring after-tax savings vehicles, consider whether Roth IRA or backdoor Roth contributions fit your situation. It’s a smart way to diversify your tax exposure for the future.
- If you’re enrolled in a High Deductible Health Plan (HDHP) and contributing to a Health Savings Account, maximizing your contributions ($4,300 for self-only coverage and $8,550 for family coverage) can have significant long-term benefits. You’ve probably heard it countless times, but HSAs are the golden goose of financial planning: triple tax advantaged. Tax-deductible contributions, tax-free growth, and tax-free withdrawals (assuming they’re used for qualified medical expenses).
4️⃣ Last up: Tax planning
Reviewing your tax situation before year-end can reduce hiccups, headaches, and surprises come tax filing season. There are a number of moves you can make to smooth out your 2025 return and potentially lower your tax bill.
- For the newlyweds, if you got married at any time during 2025 (congrats!), you are considered married for the entire tax year. Most couples benefit from married filing jointly, which often provides broader tax brackets, higher deductions, and expanded eligibility for credits.
- If you had any life changes this year like marriage, kids, or significant raise, taking a look at the withholding levels on your pay stubs can help you assess if you’re over or under withholding. After all, why pay the government more than you have to, sooner than necessary?
- If you happened to move this year, your tax situation may have gotten a bit more complicated. As state tax rates vary widely, you will want to make sure your employer was properly notified and you update your W4 and applicable state withholding form. Speaking from experience, having inconsistent figures on your W2 or income that does not properly match your residency situation can lead to a load of error messages in TurboTax or questions from your CPA. Cleaning this up ASAP is advisable.
- As it pertains to equity compensation, options and RSUs that vest after you move may create state tax sourcing issues. The state where you earned that income may still want its share of taxes. It’s worth confirming how your company handles this.
- If you’ve recognized capital gains this year, now’s a great time to review your portfolio for tax loss harvesting opportunities. Selling losing positions to offset gains can help reduce your current year tax liability and presents a silver lining to those stock picks that didn’t work out quite as you expected.
- If multi-generational tax planning is your jam, (one-of-us, one-of-us!), you can consider gifting strategies to efficiently transfer wealth. Whether you’re a parent helping children or receiving a nice gift from a parent or grandparent, the annual gift tax exclusion allows one to send or receive up to $19,000 per recipient in 2025 without gift tax implications. A meaningful way to share success while trimming estate tax exposure. Many wealthy families make these moves around year-end.
These are the types of checklists and reviews that can optimize your financial situation year-in and year out. Alongside an updated financial plan, they help you review the year that was and effectively plan for the year ahead.
Maybe you spent more time dining out than you expected, driving up credit card expenses. Or you traveled your heart out, at the expense of long-term savings. Orrrr maybe you were a workaholic homebody that grinded the year away saving, but wondered when you get to enjoy the fruits of your labor. Taking some time to be honest with yourself, review your finances, and assess how your equity fits into the bigger picture helps you move into the new year with confidence.
Things we’re digging:
- 🎨 A pair of thieves pulled off a crown jewel heist at the Louvre and escaped on scooters?? Not our usual approach to asset transfers...
- 🎃 Halloween dog parades are making their rounds in NYC, with Washington Square Park’s up tomorrow. The competition for best costume is brutal and adorable.
- 🪨 A family in New Orleans found a 1,900-year-old Roman grave marker while cleaning up their yard. I found an old sock once 😬
