By Jeremy A. Wechsler, Esq.
Investment Advisor Representative
[email protected]
As the year winds down, December 31st has a funny way of sneaking up on people. One moment it’s Thanksgiving, the next you’re staring at the calendar wondering how it’s already 2026. In between the gifts and general holiday craziness, make sure you are focused on important tasks for yourself. This week, I thought I’d pass on a financial checklist (because who doesn’t love checklists?). The little things add up over time, so keeping an eye on your finances and related matters on a regular basis makes a big difference. Click here for your printable version.
Review all beneficiary designations.
Retirement accounts, life insurance, annuities—make sure the right people are listed. This takes five minutes and prevents the wrong person from inheriting six figures. Typically, you can check this information online, but if not, call the custodian of the funds and ask them to send you a confirmation of beneficiaries. If the funds are with FRS, give us a call and we can help.
Make gifts before December 31st.
Each year, you can give away $19,000 per person without using your lifetime exemption or filing a tax return. These gifts are tax free. Gifting is a great way to help beneficiaries now, and has long-term tax benefits as well. Be careful about gifting in general, and speak with your advisor before you begin a gifting program.
Double-check your estate documents.
Wills, trusts, powers of attorney, living wills—make sure they still reflect your wishes. Life changes fast, and you don’t want your documents out of date.
Make any charitable gifts and consider a ‘QCD’.
If you’re 70½ or older, Qualified Charitable Distributions (QCDs) from your IRA directly to a charitable organization can satisfy RMDs and avoid taxes. A great move for high-income retirees.
Handle RMDs (your own and inherited).
The grace period is over for Inherited IRAs—beneficiaries who inherited in 2020 or later must take the required withdrawal this year. Required Minimum Distribution ages vary depending on the year you are born. If you are a client of FRS, you should have your RMD’s fulfilled if applicable.
Still Working? Review your tax withholding.
Bonuses, investment gains, and Roth conversions can all shift you into a different bracket. A quick check avoids April surprises.
Review 529 plans.
The rules expanded this year—books, tutoring, tests, and certain therapies now qualify for tax-free withdrawals. Make sure balances and beneficiaries are correct.
Rebalance your investment portfolio.
Markets moved a lot in 2025. Rebalancing keeps your risk level where it’s supposed to be. Clients of FRS meet regularly with their advisor and we keep a close watch on all of our portfolios.
Audit your subscriptions and “silent” expenses.
This app, that magazine, and the long-lost subscription. Double check your credit card statements, and eliminate any recurring expenses if you’re no longer using the app or subscription.
Update your financial “vault.”
Store copies of estate docs, contact info for key advisors, and a financial summary. (At FRS, we prepare and regularly update our clients’ Money Maps.) If something happens, your family should know where everything is. My preference? A fireproof safe/box at home. Consider digital vaults for passwords, etc. if needed.
Hope you and your family have a wonderful and restful holiday and a Happy New Year!