5 Things to Do With Your Money Before the Year Ends

5 Things to Do With Your Money Before the Year Ends

By Isaac Winter


Corey Olsen

Set yourself up for a wealthier new year by following these time-sensitive tips from financial experts.

Standard financial advice says to save, save, save, often without specific timelines. That’s good advice—but more good advice reminds savers and spenders alike that the end of the year comes with some important financial deadlines. The final months of the year are a great time to boost the financial efforts you’ve been making all year or even make up for some less-than-stellar money decisions or difficulties.

The financial decisions you make now—if you didn’t make them earlier in the year—can help lower your tax bill next year, protect you from fraud, and even improve your health and the world around you. Whether it’s been a tough year that you want to end on a high note or you want to take steps now to make next year better, these suggestions can help.

Fully Fund Your Retirement Account

Put as much as you are able to into a traditional 401(k) or IRA before the end of the year. A higher contribution can lower your taxable income, so you could pay less in taxes in April, says Misty Lynch, a senior financial advisor at Sound View Financial Advisors, LLC. in Massachusetts. If your company offers it, take advantage of employer matching—essentially free money for retirement.

Aim to hit your contribution limit as soon as possible; waiting means losing time in the market for your investment to grow, says Manisha Thakor, founder of MoneyZen, a financial wellbeing consultancy. This year, you can squirrel away up to $22,500 in a 401(k) and $6,500 in an IRA (traditional and/or Roth). People ages 50 and over can put an additional $1,000 in an IRA and up to $30,000 total into a 401(k).

Need to catch up? If you received an annual bonus or another financial windfall, deposit all or most of it straight into your retirement account.

Do a Security Check

Fraud attempts rise by over 23 percent at year’s end due to holiday spending. Delete credit card and other personal info saved in your browser, says Lyn Tran, former chief product officer at Figleaf, a consumer privacy company. (Go into your browser’s Preferences to delete data and turn off autofill.)

See if your bank has a virtual credit card program; instead of plugging in your card numbers during checkout, you receive a randomly generated, one-time-use sequence. And before ordering something, always confirm that the checkout page has a secure connection. The URL should include “https,” and a padlock or key symbol should appear on the far left of the address bar.

Consider Charitable Giving

December is a good time to be generous. If you itemize deductions, giving gifts to qualified charities before December 31 can reduce your tax bill. Use the Tax Exempt Organization Search tool on IRS.gov to check whether a charity qualifies for tax-deductible donations, says Thakor. Gifts of $250 or more require a dated receipt that includes the gift amount and a description. Donations under $250 don’t require detailed records, but Thakor suggests keeping them anyway in case you’re audited.

The maximum amount you can deduct for charitable donations depends on your financial situation; ask an accountant how much you should give and how often. Next year, consider figuring out how to budget for charitable giving and set up automatic monthly donations to your favorite causes. These gifts help nonprofits manage budgets and figure out what they can spend each month. Please talk to your tax professional or accountant.

Take Advantage of Cheaper Health Care

By December, you’ve probably met your health insurance deductible, so it’s the perfect time to receive routine care and elective procedures that may cost more once January arrives, says Sharon Orrange, MD, clinical associate professor of medicine at the Keck School of Medicine at the University of Southern California. Get up-to-date on immunizations, book a skin check with your derm, or finally schedule that colonoscopy. A Zocdoc survey found that November and December are typically slower months for many practices, meaning appointments might be easier to come by.


This article was written by Isaac Winter from Real Simple and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.


This informational and educational content does not offer or constitute financial, investment, legal, or tax advice.  Your unique needs, goals and circumstances require the individualized attention of your own financial, legal, tax and other professionals. Equitable Financial Life Insurance Company and its affiliates do not provide legal or tax advice or services.

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