It might be only September, but the end of the year is likely to sneak up on you faster than you might imagine. If you can start taking some financial moves now, you can get through the holiday season without additional stress, knowing that you’re all set for the calendar to roll over to 2026.
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Here are the steps you should start taking with your money now before all of the year-end distractions start to set in.
Harvest Tax Losses
September is traditionally a weaker month in terms of stock market performance. While no one can predict the future, that can make now a good time to harvest your tax losses.
Remember, you can use losses to offset capital gains to reduce your overall tax bill. You can also use $3,000 in excess losses to offset your ordinary income. Just be sure to avoid a wash sale, in which you buy a “substantially identical” security within 30 days before or after you take a tax loss.
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Max Out Your Retirement Accounts
Pretax contributions you make to your 401(k) plan count for 2025 only if they are in before year-end. As fall rolls around, it’s a good time to make sure you’ll sock away as much money as possible to your 401(k) plan before year-end. If you hardly notice the amount of money that’s going into your retirement plan, this is a great time to increase your contribution rate for the rest of the year.
Remember, if you’re 60 to 63 years of age, the allowable “catch-up” contribution jumps to $11,250 for 2025. If you spread these additional contributions out over the remaining months of the year, you can provide a significant boost to your long-term account balance.
Rebalance
Portfolio rebalancing is usually thought of as a year-end activity, and indeed, you can wait until December if you so desire. But even three-quarters of the way through the year, it doesn’t hurt to conduct a portfolio review and see where you stand.
After back-to-back years with gains in excess of 20% for the stock market — and a year-to-date return in excess of 13% as of mid-September — it’s entirely possible your stock allocation is out of whack. If a tariff-induced recession is on the way, or even if this fall simply triggers a garden-variety correction in the markets, you might be thankful you reallocated before any sell-off.
Keep an Eye on Income and Capital Gains
Remember, if you’re having a low-income year, that can be a great time to cash in on your capital gains. Although most taxpayers pay a 15% rate on long-term capital gains, you may actually qualify for a 0% rate, depending on your taxable income. Here are the income breakdowns by filing status for tax year 2025, according to the IRS:
- $47,025 for single and married filing separately
- $94,050 for married filing jointly and qualifying surviving spouse
- $63,000 for head of household.
So, if your taxable income is, say, $60,000 as a married couple filing jointly — but you expect that to jump up to $100,000 in 2026 — this would be a good time to snag some big tax savings on your long-term capital gains.
Check Your Insurance Coverage
Insurance is an often-overlooked aspect of a personal financial plan, but it’s an essential one. In addition to coverage for your home and vehicle, consider whether liability insurance, long-term care insurance or other protections are appropriate.
While you’re at it, double-check your beneficiary designations and healthcare directives to make sure they’re still set up to carry out your wishes. The same is true whether you have a will or trust.
Lock In Higher Yields
Market participants are betting on three interest rate cuts by the Federal Reserve in 2025, with more potentially on the way in 2026. What this means is that market interest rates are likely to trend lower as well.
If you rely on your investments for income, this might be a good time to lock in higher yields before they fall. Of course, as with any investment, you should consider your entire financial situation, including your objectives and risk tolerance, before you make any moves.
Set 2026 Goals
It’s harder to make financial progress without making goals. Before the year ends, set up at least one financial goal for 2026.
Perhaps you want to finally get out of debt, or build an emergency fund, or boost your retirement plan contributions. Whatever it is, put it down in writing and figure out a plan to help you accomplish it, perhaps in conjunction with a financial advisor.
The Bottom Line
There’s no “law” that says year-end financial planning can only happen in December. In fact, starting a few months before the end of the year can be a great way to optimize your financial life ahead of the craziness of the holidays, when you might be more prone to overlooking some important moves.
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This article originally appeared on GOBankingRates.com: With 2026 Coming Fast, Here’s What You’ll Want To Do With Your Money Before Year-End
