Five Financial Moves to Bring Balance Before Year-End

As 2025 comes to a close, it’s the right time to pause, take stock, and help your financial life remain balanced heading into the new year. The passage of the One Big Beautiful Bill Act (OBBBA) introduces updates that may affect your taxes, investments, and estate plans in 2026. Acting now can help keep your plan steady through the transitions ahead.

1. Revisit Deductions and Contributions

Strong plans begin with structure. Before December 31, confirm you’ve maximized contributions to your retirement and health savings accounts:

• 401(k): $23,000 ($30,500 if 50 or older)

• Traditional IRA: $7,000 ($8,000 with catch-up)

• HSA: $4,150 individual / $8,300 family

While the OBBBA doesn’t change these limits for 2025, new income thresholds and deduction adjustments are on the horizon. For higher-income households, contributing the maximum this year can create meaningful tax advantages before next year’s shifts take effect.

Business owners may also want to review expense timing and bonus-depreciation strategies in light of the Act’s revised treatment of capital expenditures. These adjustments can influence whether accelerating or deferring expenses supports your long-term goals.

2. Review Estate and Beneficiary Documents

Your estate plan anchors your family’s financial security. Beginning in 2026, the lifetime gift and estate tax exemption increases to $15 million per individual ($30 million per couple). That expanded window creates new opportunities to transfer wealth efficiently.

Now is the moment to review wills, trusts, and beneficiary designations to ensure they reflect your current intentions. Even if your estate falls below the exemption threshold, updating documents for recent life changes such as marriage, divorce, births, or losses can provide clarity and continuity for your loved ones.

3. Fine-Tune Charitable Giving

Giving back adds purpose to planning. Under the OBBBA, charitable deduction rules shift beginning in 2026:

• Itemizers will see a 0.5% AGI floor for deductions.

• High earners in the 37% tax bracket will have itemized benefits capped at 35%.

• A new above-the-line deduction for non-itemizers ($1,000 individual or $2,000 joint) takes effect.

This means that charitable gifts made in 2025 may receive stronger tax treatment than those in future years. Consider donor-advised funds, appreciated stock, or qualified charitable distributions (QCDs) from IRAs to give strategically and meaningfully before year-end.

4. Align Investments with the New Landscape

Markets shift. Your plan should not drift. Use this season to review your portfolio and help ensure it remains balanced between growth and preservation:

• Apply tax-loss harvesting to offset gains and refine allocations.

• Re-evaluate after-tax yields under the OBBBA’s evolving framework.

• For those near retirement, model how new income thresholds may affect next year’s distributions and withdrawals.

Even small adjustments now can reinforce long-term stability and keep your strategy aligned with your broader life goals.

5. Prepare for 2026 with Clarity

The most significant OBBBA provisions arrive on January 1, 2026. Early preparation allows you to adjust thoughtfully. Schedule a review early in the new year to discuss:

• Cash-flow planning and estimated taxes

• Revised charitable and estate strategies

• Investment and distribution adjustments

A proactive start to 2026 sets a clear course for the year ahead, one grounded in understanding and balance.

A Balanced Approach to the Year Ahead

Year-end planning isn’t about urgency; it’s about equilibrium. Taking time to revisit your plan now helps ensure each part of your financial life, including investments, taxes, estate, and giving, works together in harmony.

At Ballast Advisors, our role is to provide the steady guidance that helps you weather changes on the horizon. The steps you take today strengthen the foundation for the seasons ahead, keeping your world balanced, stable, and ready for whatever comes next.

IMPORTANT DISCLOSURES

The opinions expressed are those of Ballast Advisors, LLC as of the date of publication and are subject to change without notice. This material is for informational use only and should not be considered investment or financial advice. The material presented has been derived from sources considered to be reliable, but accuracy and completeness cannot be guaranteed.

Ballast Advisors, LLC is a registered investment advisor under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about the firm, including its services, strategies, and fees can be found in our ADV Part 2 and/or Form CRS, both of which are available without charge upon request. BAL-25-61