The past few years have brought their fair share of financial uncertainty—from inflation to economic shifts that left many wondering what’s next. As we look toward 2026, you might be asking yourself how to regain a sense of stability and confidence in your finances.
The good news? You’re not powerless in the face of change. With a few smart end-of-year financial actions, you can take back control, refocus your goals, and step into the new year with greater clarity. Here are five key steps to help you strengthen your financial foundation before the calendar turns.
1. Assess Your Emergency Fund
Now is the time to ensure you have enough money set aside in your emergency fund or create a plan to build this up over the next year. An adequate emergency fund should cover 3-6 months of necessary living expenses, including mortgage or rent, utilities, groceries, transportation, etc., depending upon the stability and consistency of your income.
Recent statistics from Bankrate.com suggest that Americans are still woefully short on emergency savings. With continued stock market uncertainty and a slowdown in the economy, some experts recommend keeping a little extra (maybe 6-7 months’ worth of expenses) in savings. If you're single or your sources of income are inconsistent (e.g., commission-based sales or seasonal income), consider saving at the higher end of this scale to feel confident you're covered in the event of a job loss or reduction in pay.
However much you save, be sure this money is held in a highly liquid account. It needs to be readily available and easily accessible, but it should also be in an account that offers a competitive interest rate so that you don’t lose out on potential growth. Consider an FDIC-insured bank money market account that offers a competitive interest rate so your money is still working for you in the meantime.
2. Review Your Asset Allocation & Invest with Impact
The end of the year is also a great time to review your asset allocation strategy. Given the continued impact of market volatility and historic levels of inflation these past few years, it’s crucial that you evaluate your investments and verify your portfolio is properly diversified.
It should also be tailored to your specific risk tolerance level, so you’re earning enough returns to keep up with inflation but not overexposing yourself to excess risk beyond your comfort level and your stage in life.
3. Consider Charitable Donations
Charitable donations are another option that can be reviewed as the year-end approaches. The holidays are a great time to give money and assets to your favorite non-profits, churches, and organizations.
Charitable donations can be used as part of your overall tax strategy, or as part of a comprehensive estate plan. Both options provide many potential benefits including supporting causes you care about, reducing your taxable income, and reducing your taxable estate.
4. Use Up Your Employee Benefits
While every employee benefit plan has its own rules and regulations, many of them expire or reset at the end of the year. You worked hard for these perks, so be sure to use them before it’s too late!
Medical and Dental Benefits
Now’s the time to take care of all your healthcare needs before your deductible resets. Dental plans in particular often have a maximum coverage amount. If you haven’t used the full amount and anticipate any treatments, make it a priority to set an appointment before December 31st.
Flexible Spending Account
Like your health insurance benefits, you’ll want to use up as much of your FSA (flexible spending account) dollars as possible by the end of the year since you are only allowed to carry over $660 for the plan year-ending 2025 into 2026. That being said, check the restrictions on your account to see what the money can and cannot be used for, and take care of any needs you may have as allowed by your plan.
Sick and Vacation Time
Depending on your company, your sick or vacation time might expire at the end of the year. Check with your HR department to learn about any expiration dates. If it does expire, fit in a last-minute staycation or take some time off to work on projects you’ve been putting off. If you need to make any trips to the doctor, schedule those appointments now to make use of paid-time-off benefits before you lose them.
5. Revisit Your Plans and Policies
Lastly, take another look at your estate plan and insurance coverage. If you took the time and energy to create an estate plan, check it periodically (every few years or when major life events occur) to ensure all the documents are up to date and no major details have changed.
Your insurance needs may also change as the year goes by, so periodically review your coverages and designated beneficiaries to bring them up to date to reflect your current financial situation. For example, if you paid off debt (such as your mortgage), you may not need as much life insurance coverage since your family’s liabilities have decreased. You might also want to evaluate your need for other types of insurance, such as long-term care or disability insurance.
Collaborate With an Advisor to Complete Your End-of-Year Financial Actions
If you’re nearing retirement or already enjoying it, you know how important it is to close out the year with clarity and intention. The right end-of-year financial actions can help you make the most of your income, savings, and benefits as you prepare for what’s next.
At Prosperity Financial Solutions, we focus on guiding professionals, including those in the medical field, through this stage of life with confidence. Whether you’re reviewing retirement accounts, planning withdrawals, or rebalancing investments, we can help you take control of your finances after a few unpredictable years.
Let’s make 2026 the year you feel fully in charge of your financial future. Call (561) 207-6213, email ramsden@brookstoneadvisor.com, or book a 30-minute complimentary call online to start building your personalized plan and move into the new year with peace.
Frequently Asked Questions About End-of-Year Financial Actions
1. What are the most important end-of-year financial actions to take before 2026?
Some of the most impactful end-of-year financial actions include reviewing your emergency fund, checking your investment allocation, maximizing employee benefits, and considering charitable donations for potential tax advantages. It’s also wise to revisit your insurance policies and estate plan to verify everything still reflects your current goals and financial situation.
2. Why should I focus on end-of-year financial actions instead of waiting until January?
Taking end-of-year financial actions now allows you to make timely adjustments before key deadlines—such as benefits expiration, contribution limits, and charitable giving cutoffs. Acting early can help you reduce taxes, preserve unused benefits, and enter the new year with greater financial clarity and control.
3. How can a financial advisor help with my end-of-year financial actions?
A financial advisor can help you identify which end-of-year financial actions can have the greatest impact on your goals. From optimizing tax strategies and rebalancing investments to planning charitable giving or retirement withdrawals, an advisor keeps your year-end moves aligned with your long-term financial plan.
About David
David Wilcox is president and cofounder of Prosperity Financial Solutions, a financial services firm, based in Palm Beach Gardens, FL, specializing in retirement planning, estate planning, and investments. Since 1987, David has been assisting pre-retirees, retirees, and investors with comprehensive retirement planning, helping them preserve their wealth, increase their retirement income, and avoid common financial mistakes. Prioritizing financial education, he employs strategies to instill confidence and comfort in his clients as they make decisions and move toward their ideal financial future. He also highly values building relationships with clients and strives to make them feel like part of his family.
David holds an associate’s degree from Broward College, a bachelor’s degree from Florida State University, as well as the Life Underwriter Training Council Fellow (LUTCF®) and Long-Term Care (CLTC®) certifications. A firm believer in professional education and participation, he is a member of the Global Financial Association, a member of NAIFA (National Association of Insurance and Financial Advisors), and is a Certified National Long-Term Care instructor. Teaching and mentoring other financial advisors, David presents dozens of seminars and workshops on long-term care and investment planning throughout the country. Outside of the office, family man David enjoys golfing, fitness, and spending time with his kids on the boat, going for long walks, and traveling to new places. He wants to provide a positive example for his children and show them that it’s never too late to follow your dreams. To learn more about David, connect with him on LinkedIn.
Investment advisory services offered through Brookstone Capital Management, LLC (BCM). a registered investment advisor. BCM and Prosperity Financial Solutions are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents.