Three Essential Year-End Financial Moves to Secure Your 2026

With 2025 drawing to a close, it’s the perfect moment to take strategic action on your financial portfolio. Personal finance expert Humphrey Yang recently outlined three practical steps that can meaningfully impact your tax situation, retirement savings, and overall financial stability heading into the new year.

Lock In Your 401(k) Employer Match Before Year-End

The most straightforward way to boost your retirement fund is ensuring you’re capturing your full employer match on your 401(k) contributions. Through December 31, 2025, you can add up to $23,500 to your 401(k)—or $34,750 if you’re 50 or older—for this tax year.

Even if maximizing this limit isn’t feasible for your situation, Yang emphasized that capturing your employer’s full matching contribution should be non-negotiable. “Your employer is essentially offering free money specifically for retirement growth,” he noted. This represents one of the highest-return moves available to most workers, as it’s immediate value with zero effort required beyond enrollment.

Beyond traditional 401(k) plans, alternative retirement vehicles deserve consideration. A Roth IRA or traditional IRA provides additional tax-advantaged growth potential, with 2025 contribution limits of $7,000 annually ($8,000 for those 50+). One frequently asked question involves flexibility: can you sell stocks in your roth ira? The answer is yes—Roth accounts offer substantial flexibility. You can buy and sell securities within your Roth IRA without triggering immediate tax consequences, making it an attractive option for active investors seeking tax-free growth on their trades.

Additionally, modest-income earners may qualify for the Saver’s Credit, worth up to $1,000 for individual filers or $2,000 for joint filers, when they contribute to retirement accounts.

Execute Tax Loss Harvesting in Your Investment Accounts

For those managing taxable brokerage accounts, tax loss harvesting represents a sophisticated yet accessible strategy to reduce your 2025 tax burden. The concept is straightforward: offset any capital gains realized during the year by strategically selling underperforming securities at a loss.

“If you’ve sold profitable investments this year, balance those gains by selling losing positions in your portfolio,” Yang explained. The critical deadline for these transactions is December 31, 2025, to qualify for the current tax year.

The IRS permits offsetting up to $3,000 in excess capital losses against regular income annually, with additional losses carried forward indefinitely. This rule allows investors to convert paper losses into genuine tax benefits, potentially reducing their overall tax liability significantly.

Review Your Liquidity and Emergency Reserves

Yang’s final recommendation addresses a foundational concern: ensuring adequate cash reserves. Review all bank accounts, brokerage cash holdings, and other liquid assets to verify you’re properly positioned for 2026’s expenses.

Current Federal Reserve data reveals a sobering reality: 45% of American adults lack sufficient savings to cover even three months of routine expenses. Building emergency reserves of three to six months’ worth of living costs—accounting for groceries, insurance premiums, utilities, and unexpected medical expenses—provides critical financial security.

This year-end review should include a realistic budget assessment for the coming year. Healthcare premiums, property taxes, and other recurring obligations often increase annually. If your current reserves fall short, prioritize reducing discretionary spending or exploring supplemental income opportunities before January arrives.

Taking these three steps before year-end positions you for financial confidence in 2026.