In “The Twelve Days of Christmas,” the list keeps growing, much like the financial to-dos that pile up at the end of the year. This year-end financial checklist is designed to turn that growing list into a clear, actionable plan.
In Part 1, we shared the first 6 tips to help you stay focused, avoid common mistakes, and make more confident decisions.
Now, we’ll cover tips 7-12, which focus on strategies that can help you strengthen and protect your financial plan:
7. Take Advantage of Tax-Deferred Accounts
A key element of a long-term wealth accumulation strategy is to take advantage of your tax-deferred savings opportunities. Prioritize contributing to your company’s 401(k), especially if there is an employer match (this is essentially free money!). If you’re not participating in a 401(k) or want additional savings options, you can consider a Traditional or Roth IRA. Furthermore, if you have a high-deductible healthcare plan, Health Savings Accounts (HSAs) can be an effective way to save for healthcare costs with tax advantages.
2026 contribution limits:
- 401(k): $24,500 with an additional $8,000 catch-up for those age 50+ or $11,250 “super” catch-up for those between ages 60 and 63
- IRA: $7,500 with an additional $1,100 catch-up for those age 50+
- HSA: $4,400 for individuals, $8,750 for families, and an additional $1,000 catch-up for those age 55+
8. Borrow Carefully
Try to avoid borrowing for depreciating assets and short-lived purchases, such as cars and vacations. If you take on debt, keep it intentional – ideally for assets that may appreciate over time, like your personal residence or real estate investments. These assets can build equity and may provide tax deductions, such as mortgage interest. Other investments, if chosen carefully, can also appreciate and potentially generate returns exceeding the borrowing costs. A disciplined approach can prevent debt from quietly eroding your net worth.
9. Execute Estate Documents
Do not delay preparing essential legal documents, including a will, powers of attorney, and healthcare directives. These documents are extremely important to help ensure that your wishes are clearly stated and can prevent family disputes or court interventions. Review and update them regularly, especially after significant life changes such as marriage, divorce, or the birth of a child.
10. Ensure Adequate Insurance
Insurance can help you protect what you’ve worked so hard to build. Proper life, health, and disability coverage can help protect against unforeseen risks. Review your policies annually to help avoid being under- or over-insured.
11. Protect Your Credit Score
A strong credit score can improve your borrowing options, including your loan rates and terms, which could save significant money over time. The average U.S. FICO score, around 715, is considered good and can qualify a borrower for prime rates. To help protect your score, pay bills on time, keep credit utilization low, and avoid unnecessary inquiries.
12. Execute Tax-Efficient Charitable Giving
With 2025 standard deductions high ($15,750 single, $31,500 joint), many taxpayers take the standard deduction rather than itemizing. To maximize benefits, consider charitable giving strategies like bunching donations into one year or using donor-advised funds for lump-sum contributions now, granting later. Additionally, donating appreciated assets can help you avoid capital gains tax.
The end of the year is a great time to reset, refocus, and build momentum for what’s next. We hope these 12 tips help you start 2026 with more clarity and confidence.
Keep in mind that everyone’s financial situation is unique; use these ideas as a starting point to evaluate what matters most for your goals, timeline, and comfort with risk as you head into 2026. If you’d like help turning these ideas into a coordinated plan, consider working with a Certified Financial Planner® professional for personalized guidance tailored to your situation.
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Marshall Clay CFP, J.D., is a Partner and Senior Advisor at The Welch Group, LLC, specializing in providing Fee-Only investment management and financial advice to families throughout the United States. Marshall is a graduate of the United States Military Academy in West Point, New York, the Cumberland School of Law in Birmingham, Alabama, and is a CERTIFIED FINANCIAL PLANNER™. In addition, Marshall is a frequent guest on local television stations as an expert on various financial planning matters.
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