💰Last Call: Critical Money Moves to Wrap Up 2024 Right

☕ Good morning!

With 2024 winding down and the holidays quickly approaching, it’s time to take stock of your finances and make a few strategic moves before the clock strikes midnight on December 31. 

Whether trimming your tax bill, boosting retirement savings, or planning for future gains, these last-month steps can substantially impact your 2025. 

Let’s dig into a few of the most actionable ways to close out the year strong.

💼 Make Any New Relevant Business Expenses

Every dollar you deduct is a dollar that lowers your taxable income, and that could mean big savings for business owners, freelancers, or side hustlers.

Whether it’s new equipment, software, or travel expenses, you need to spend and document it before the calendar year ends to claim it for 2024.

🛠️ Action: Take 30 minutes to audit your spending. Have you logged all qualifying purchases, like that shiny new Macbook Pro or conference fees? 

If not, get them on the books, and consider accelerating other necessary expenses—like paying for 2025 subscriptions upfront—before December 31. 

Bonus: Use a business credit card to separate personal and professional expenses.

📉 Tax-Loss Harvesting

Bad investments hurt, but letting them save you on taxes is turning lemons into lemonade (or at least a lower tax bill). 

Offset capital gains or even reduce $3,000 of ordinary income with investment losses.

🛠️ Action: Scan your portfolio for stocks or funds in the red. Apps like Robinhood will even tell you on your portfolio page whether you’re sitting on an unrealized gain or loss. 

Let’s say you bought Widget Co. at $50/share, and it’s now $30/share. Sell it. 

Just remember to reinvest that cash smartly—don’t violate the wash-sale rule by repurchasing Widget Co. within 30 days.

If you’re so attached to Widget Co., you can buy it back 31 days later, still keep the tax savings, and enter the stock on a new cost basis. 

💰 Max Out Retirement Contributions

Every dollar you stash in your 401(k) or IRA is one less the IRS can touch… for now.

🛠️ Action: Calculate exactly how much more you can sock away before December 31. For example, if you’ve contributed $15,000 to your 401(k), you still have $8,000 left to hit the $23,000 max. 

Go into your payroll portal today and boost your contributions to max out in these final paychecks.

📈 Rebalance Your Portfolio

The market’s been a rollercoaster, and your once-perfect asset mix might now look like a Picasso—beautifully unbalanced. 

Rebalancing reins in the chaos and realigns your investments with your goals.

🛠️ Action: Log in to your brokerage account (the one with the forgotten password) and check your allocation. For example, if stocks grew from 60% to 75% of your portfolio, sell the excess and buy into bonds or other lagging investments. 

Reminder: Keep this tax-efficient—sell losers in taxable accounts and rebalance freely in retirement accounts.

🔄 Plan Roth Conversions

Converting pre-tax accounts to Roth IRAs shields your retirement from future tax hikes. It’s a little tax pain today for tax-free gains tomorrow.

This is especially helpful in a low-income year, and if you find yourself at the tail-end of one but a new opportunity on the horizon, this could be a great move. 

🛠️ Action: Use a tax calculator to decide how much your IRA can convert without bumping into the next tax bracket. For instance, if you’re in the 24% bracket, figure out how much room you have left before hitting 32%, and convert only that amount. 

Don’t forget to set aside cash to pay the taxes due!

⭐ Making Sense of Year-End Checklists and Bonus Financial Review Questions to Wrap the Year

Checklists will only get you so far. As you close out the year, reflect on these questions to gain clarity and direction for 2025.

❓ What did I change my mind on financially this year?

Maybe you thought saving in cash was safe until inflation taught you otherwise. 

Recognizing shifts in your mindset helps you build smarter strategies going forward while helping close the feedback loop on prior thought patterns. 

Action: Write down one outdated belief you replaced and the steps you’ll take to act on your new perspective in 2024.

❓What drained my financial energy?

Identify the “energy vampires”—like subscription bloat or bad spending habits—and make a plan to cut them off in 2024.

Action: Cancel one recurring expense today, even if it’s just that streaming service you barely use. Instead of bleeding out at $20 per month, dollar cost average that into an index fund. 

Apps like Rocket Money let you cancel right in the app, and financial tracking apps like Copilot and Tiller can automatically categorize them for you. 

❓ What financial risks did I take, and did they pay off?

Whether it was investing in a hot startup or saying yes to a big home project, understanding outcomes sharpens your ability to take calculated risks.

Not all payoffs are financial– but for the sake of this exercise, be mindful of where your money is going and what you got out of it. 

Action: Review one risk you took this year and jot down what you’ll repeat—or avoid—in future decisions.

❓What financial habits gave me peace of mind?

Maybe it was automating your savings, building an emergency fund, or finally saying no to lifestyle creep. 

Celebrate these wins and double down on them.

Action: Increase your automatic savings or investment contributions by at least 1% before year-end.

❓What’s one move I could make to feel wealthier in 2025?

Sometimes, we spend so much time working and planning that we don’t actually experience the benefits outside of a mental state of security.

Decluttering finances, upgrading your budgeting tools, or finally booking that bucket list trip can make wealth feel real—not just numbers on a screen.

Action: Take one step today, like reallocating an unused account or planning a splurge that aligns with your values.

Stay savvy, stay proactive, and keep your financial future bright.

Until next week!

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

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