By Christian Dekker, CFP®
Being part of a high-net-worth (HNW) family can complicate your finances. As the end of 2025 nears, it may be difficult to keep track of what you have already addressed and which tasks you still need to do. We hope this year-end financial checklist for HNW families helps you streamline your annual financial review.
Tax Planning
Make sure these tax planning steps are accounted for prior to the end of the year:
Take Your Required Minimum Distributions (RMDs)
This is probably one of the simpler items on your year-end financial checklist, but it’s an important one. If you don’t take RMDs from tax-advantaged accounts, you may owe a significant tax penalty.
If you are 70½ or older, you might consider making qualified charitable distributions (QCDs) (this is when you have your RMD transferred directly to a qualifying charity). Because QCDs are tax-deductible, they can be an effective way to reduce your taxable income.
Harvest Losses to Offset Capital Gains Tax
Tax-loss harvesting should be on almost any investor’s year-end financial checklist. When you sell poorly performing investments at a loss, you can offset present and future capital gains tax.
Finalize Your Charitable Giving Plans for the Year
If charitable giving is important to you, your year-end financial checklist could include making gifts by the end of the year to receive a same-year tax deduction. For larger contributions, consider a donor-advised fund (DAF). Although you may gift cash, gifting appreciated securities can reduce your capital gains taxes.
Make Strategic Gifts
For 2025, the annual gift tax exemption is $19,000. Making gifts up to this amount lowers the value of your taxable estate. If your children or grandchildren have existing 529 plans, contributing may lower your Pennsylvania income tax.
Run a Tax Projection
A tax projection can help identify hidden liabilities and predict what you should pay in estimated taxes.
Investment Planning
Next, review your investments:
Consider Rebalancing Your Portfolio
When you rebalance your portfolio, you buy and sell select assets to bring it back to its original target asset allocation. This is a complex process, but our team can help.
Take Another Look at Your Stock Options and Restricted Stock Units (RSUs)
Before the year closes, review your stock options and the vesting schedules of any RSUs you have. During this process, you can also determine whether you’re likely to owe alternative minimum tax (AMT). Depending on your AMT exposure, you might decide to exercise your stock options now or wait until later.
Evaluate Liquidity and Cash Flow
This is an essential element of your year-end financial checklist. Verify you have enough liquidity to make upcoming payments, and revisit lines of credit and lending rates if needed.
Retirement Planning
Set aside time to review major areas that will impact your retirement planning:
Maximize Retirement Contributions
While maximizing contributions might not be right for everyone, reviewing contribution rates is an essential part of any year-end financial checklist. Contributing as much as you legally can may help maximize retirement savings.
Consider Backdoor Roth Contributions or Conversions
If you exceed the income limit to contribute to a Roth IRA, a Roth conversion allows you to convert a traditional IRA. Roth accounts are funded with post-tax dollars, so they aren’t subject to RMDs.
Estate & Risk Management
Finally, review your estate plan and risk management strategies:
Review and Update Your Estate Plan
You probably already know you should review your estate plan after any major life change (like a marriage, a divorce, or the birth of a child). However, it’s generally wise to include an estate plan check-in when making your year-end financial checklist.
Review your current wills and trusts as well as beneficiary designations on accounts and insurance policies. If you have family limited partnerships (FLPs), grantor-retained annuity trusts (GRATs), or charitable trusts, take a moment to review these as well.
Review Your Risks and Insurance Policies
Take a look at current life and disability insurance (as well as property and casualty insurance). Evaluate your long-term care needs and adjust your insurance strategy accordingly.
Need Help Navigating Your Year-End Financial Checklist?
This year-end financial checklist is meant to be a starting point. Your family’s individual needs may differ, and at Thrive Wealth Management, LLC, we aim to help you meet those needs. If you think we might be the right firm for you, contact us online.
To schedule a meeting, call (215) 376-5530 or email christian@thrivewealth.com.
About Christian
Christian Dekker, CFP®, is a Relationship Manager at Thrive Wealth Management, LLC, a boutique financial planning firm in Blue Bell, Pennsylvania, where he provides comprehensive financial planning and supports clients in meeting their long-term goals. As a fiduciary, Christian delivers personalized advice, keeping clients disciplined and accountable to their financial plans, especially through emotional moments. One of the most fulfilling parts of his job is helping clients reach major milestones, whether it’s retiring, purchasing a vacation home, or taking a dream family trip. He finds it rewarding to help clients realize dreams they once thought impossible.
Before joining Thrive, Christian began his career at MassMutual, assisting individuals and families with their financial goals and creating tailored plans. He earned his BBA in Financial Planning & Services from Temple University’s Fox School of Business and obtained his CERTIFIED FINANCIAL PLANNER® designation in 2022. Outside of work, Christian lives in Philadelphia with his girlfriend and three dogs. He enjoys running, playing baseball with his brother, watching movies, and cheering on the Philadelphia Eagles, following in the footsteps of his grandfather, an Eagles Hall of Fame member. To learn more about Christian, connect with him on LinkedIn.
Disclosure:
This material is provided for informational and educational purposes only, should not be viewed as an exhaustive discussion of the topics presented, and should not be construed as individualized advice for any reader’s personal circumstances. For guidance on how these matters may impact your financial plan or investment portfolio, please contact your Thrive Wealth Management, LLC representative. While the information presented is believed to be factual and up to date, Thrive Wealth Management, LLC does not guarantee its accuracy and, due to various factors, including but not limited to changing laws and regulations, this information is subject to change. All expressions of opinion reflect the judgment of the authors as of the date of publication.
Please visit https://thrivewealth.com/disclosure for additional information regarding the professional designations and credentials discussed. Professional designations and credentials do not guarantee success or any particular investment or financial outcome.
Past performance does not guarantee future results. All investing comes with risk, including risk of loss.
