Year-end planning isn’t just a time to close the books on the previous months—it’s also about setting up for a strong future.

And one area to take a close look at is your financial picture. From taxes to investments, here are five strategies to consider that may help you end on a high note while striding into the new year with confidence.

Conduct a tax overview

One of the simplest ways to start is by analyzing tax-related factors to see where you could potentially capitalize to ensure a smoother process come tax season and lower how much you may owe. For instance, reviewing your tax bracket can give you insight into what your tax payment may be, allowing you to begin saving now to avoid having to deal with the major expense later. Likewise, you could assess your deductible expenses so you can be prepared to itemize them on your tax forms. Some examples include:

• Charitable contributions: Ensure that your donations qualify and get documented for easy filing.
• Mortgage interest and state/local taxes: Check limits, and gather all receipts as proof of your claims.

Maximize retirement account contributions

Retirement savings are a cornerstone of financial health, and there’s are plenty of ways you can give them a boost. For one, if you have some extra funds from a work bonus or holiday gifts, you can make after-tax contributions up to the yearly limits set by the IRS, which you can find on its website; these may vary depending on if you have a traditional IRA, Roth IRA, or 401(k). Or to implement a long-term strategy, adjust your regular, pretax contributions to the maximum allowed to both enhance your savings and reduce your taxable income. To visualize this benefit, suppose a taxpayer in the 24% tax bracket contributes an additional $5,000 to their 401(k) in one year—they could save approximately $1,200 in taxes while their retirement account grows tax-free until withdrawal.

Consider charitable giving strategies

Year-end is a popular time for charitable giving, not only to benefit causes close to one’s heart but also as a tax-saving measure. Donating cash or appreciated assets to charity can help lower your taxable income via a deduction, though you’ll want to make sure to select a qualifying organization—gifts to family or friends don’t count. Further, you may be required to get a written letter of acknowledgement or fill out a special form depending on the total worth of your contributions. One option you could consider is a donor-advised fund (DAF), or an account set up specifically to manage and disperse charitable donations. When you contribute, you can get an immediate tax deduction without having to decide on a recipient right away, giving you flexibility in how and when you decide to give.

Reassess your insurance policies

Insurance needs change over time, especially with major life events such as getting married, purchasing a new home, or having children. Reviewing your policies annually can help ensure that you have the right coverage. For instance, if you recently made improvements that increased the value of your home, you may find that you are now underinsured. Conversely, perhaps your teenager just went off to college and took one of the family cars, allowing you to take both them and it off your policy. Make sure to look at your home, health, auto, and life insurance policies, and consider reaching out to an insurance professional, who can help align your coverage with your current needs and identify potential areas where you could save.

Plan ahead

Preparing a budget for the upcoming year can provide you with a clear path toward achieving your short- and long-term financial goals. Take this time to revisit these objectives, whether you’re looking to save for a home, college, or retirement, and use the past year’s data to build a budget that will allow you to pursue them. Include in it all your income sources along with fixed expenses like your mortgage payment, variable essentials like groceries and gas, discretionary spending for fun purchases, and, of course, your savings goals. As you head into the new year, having a forward-looking budget can help reduce your financial stress, avoid unnecessary debt, and keep you aligned with your primary targets.

Year-end financial planning can be a critical step toward setting yourself up for future success. While there’s no one-size-fits-all approach, taking proactive steps now may help lower your taxes, grow your savings, and ensure that your financial goals remain on track. For support in this journey, partner with a trusted financial professional for expert guidance in navigating complex decisions and tailoring strategies to your unique situation.