Smart Financial Planning Moves to Make Before December 31st

The final weeks of the year move at breakneck speed and are often filled with spending. Gifts, travel, celebrations, and last-minute holiday errands can consume your time and take a significant toll on your wallet. With everything December throws at you, it’s easy to push financial planning decisions into the “I’ll deal with it later” pile. 

The problem? Later is January, and once the calendar resets, some of your most valuable opportunities disappear.

For busy Keene professionals, this last stretch of the year is more than a calendar milestone. It’s a chance to pause, get your bearings, and make a few thoughtful moves that can help reduce taxes, reinforce your long-term plan, and bring more clarity into the year ahead. New Hampshire’s tax landscape may look simple from a distance, but anyone managing retirement accounts, investments, or multigenerational planning knows the details matter.

Below are the key moves to consider as part of your year-end financial checklist—especially if you want to finish strong and start next year with confidence.

Move #1: Maximize Tax-Advantaged Contributions

Most people know they “should” contribute to their 401(k), IRA, or HSA, but December is when those contributions carry extra weight. These accounts offer a straightforward way to support both your present and future, especially if you’re balancing high earnings with long-term goals.

If you’re still working, increasing your 401(k) contributions before December 31st can reduce your taxable income and give your investments more time to grow. Even a small bump now can create long-term benefits when carried out consistently.

Your IRA contribution deadline isn’t until tax filing season, but reviewing where you stand helps ensure the rest of your plan stays coordinated. HSAs deserve attention, too, particularly with healthcare costs climbing across the Granite State. Their triple tax advantages make them one of the few accounts that genuinely support both today’s medical needs and tomorrow’s retirement income strategy.

Move #2: Consider Roth Conversions and Tax-Loss Harvesting

December is the final opportunity to complete a Roth conversion for the tax year, and it’s also when tax-loss harvesting becomes most effective.

A Roth conversion can be a powerful long-term planning tool, especially for professionals who want more flexibility around future withdrawals or who expect tax brackets to rise. When done with intention, converting in a lower-income year or during a market dip can help create tax-free income in retirement. While a conversion isn’t right for everyone, reviewing your numbers before December 31st ensures you don’t miss the opportunity.

Tax-loss harvesting is another option for investors with taxable accounts. Realizing strategic losses to offset gains can reduce your overall tax burden without changing your long-term investment philosophy. The goal isn’t to “time the market,” but to use market movement to your advantage while keeping your strategy intact.

These moves require precision and timing, which is why a professional who understands tax planning for Keene, NH, professionals can help you evaluate whether either strategy fits your situation. 

Move #3: Review Charitable Contributions for Deduction Optimization

Charitable giving often becomes top of mind during the holidays, but it also plays a meaningful role in tax planning. If you itemize deductions, December is your final opportunity to make contributions that count for this tax year.

For families who don’t itemize annually, strategies like bunching contributions or using donor-advised funds can create more impact without requiring more money. These approaches often work well for people whose income fluctuates or who want predictable, long-term giving structures.

Even in a state with no income tax, your federal deductions still matter. Making sure your charitable strategy aligns with your goals and your broader wealth management plan can help your giving support both the causes you care about and the financial strategy guiding your future.

Move #4: Revisit Estate and Beneficiary Documents

Estate planning may not be the most festive December task, but it’s one of the most important. Many people don’t realize they should regularly review their estate documents. A quick year-end review can ensure your current plan still aligns with your final wishes. 

Wills, powers of attorney, healthcare directives, and trusts all need to reflect your current life and relationships. Beneficiary designations deserve just as much attention, especially because they override wills and transfer assets directly.

For many families in the Monadnock Region, estate conversations also include real estate, family property, and long-term legacy goals. New Hampshire’s lack of an estate tax doesn’t eliminate the need for a thoughtful plan—it simply gives you more room to design one that reflects what matters most.

Move #5: Evaluate Insurance and Risk Coverage Updates

Your insurance is part of your financial plan, not something separate from it. A lot can change in a year, including your income, assets, and family needs. Your coverage should change with you.

December is a practical time to review things like:

• Life insurance
• Disability insurance
• Long-term care options
• Homeowners and property coverage
• Umbrella liability protection

These policies help protect the strategy you’re building. Revisiting them now can prevent gaps later and ensure that everything supporting your plan is aligned and up to date.

Schedule Your Year-End Financial Planning Review 

The final weeks of the year are busy, but they’re also full of opportunity. Taking an hour to review your plan now can create benefits that last well beyond this tax season.

If you’d like help reviewing your year-end decisions or creating a plan that ties together taxes, investments, retirement, and long-term goals, now is a great time to connect. Book a year-end strategy session with Birch Financial Group and start the new year confident that your plan aligns with your financial goals.