Looking Ahead to 2026
- Full Circle
- Dec 29, 2025
- 4 min read
The end of the year can help remind us of last-minute things we may want to address and the goals we want to pursue as we head into the new year. Here are some aspects of your financial life to consider as this year comes to a close and we look ahead to 2026.
Your investments
After a year of strong market performance, it can be helpful to reset expectations as we move into 2026. Markets experience cycles, and strong periods are often followed by more moderate returns. Taking time to review your investments can help ensure your portfolio still reflects your goals, time horizon, and comfort with risk. Asset allocation and diversification are strategies used to help manage investment risk, but they do not eliminate it.
Your retirement strategy
You may want to consider maximizing contributions to your retirement accounts and reviewing any existing retirement plans from work.
For 2026, the IRS has increased several key retirement savings limits:
The employee contribution limit for 401(k), 403(b), and most 457 plans is $24,500.
Individuals age 50 and older may contribute an additional $8,000 as a catch-up contribution.
Individuals ages 60 to 63 may be eligible to make a higher catch-up contribution of up to $11,250, if their plan allows.
Traditional and Roth IRA contribution limits increase to $7,500, with a $1,100 catch-up contribution available for those age 50 and older.
It may also be worth reviewing older retirement accounts to ensure they still fit into your broader strategy.
Your tax situation
Before the year ends, it may be worth having a quick check-in with your tax or legal professional, especially if anything changed financially this year. This could include selling property or investments, changes in income, or questions about deductions. Making sure past losses are accounted for and investment records are up to date can help prevent surprises later. Bringing this information into your broader financial planning conversation can help everything work together more smoothly.
Your charitable gifting goals
Year-end can be a good time to plan charitable contributions, education funding, or cash gifts to family members.
For 2026, the annual federal gift tax exclusion allows you to gift up to $19,000 per individual. This means you can gift that amount to as many individuals as you choose without those gifts counting against your lifetime estate tax exemption, provided they remain within the annual limit.
In addition to outright gifts, some families explore trusts or other planning strategies. The end of the year is also an appropriate time to review existing trusts. Using a trust involves a complex set of tax rules and regulations, so working with a qualified professional is recommended before making changes.
Your life insurance coverage
The end of the year is a good opportunity to confirm that your life insurance coverage and beneficiary designations are up to date. It may also be worth reviewing premium costs and considering whether your insurance needs have changed.
Several factors can affect the cost and availability of life insurance, including age, health, the type of policy, and coverage amount. Life insurance policies include expenses such as mortality and other charges, and surrendering a policy early may result in surrender charges and potential tax implications. Any guarantees associated with a policy depend on the claims-paying ability of the issuing insurance company.
Life events
As you reflect on the past year, consider whether any significant life changes may have financial implications:
Did you get married or divorced?
Did you move or change jobs?
Did you buy or sell a home or business?
Was there a new addition to your family?
Did you receive an inheritance or a gift?
These types of events can influence how you plan, invest, and prepare for retirement or the eventual transition out of your career or business.
Final thoughts
As the year comes to a close, it is a natural time to pause, reflect, and take stock of where you are, not just financially, but personally as well. Year-end planning is not about getting everything perfect. It is about creating awareness and clarity so you can move into the next year with intention. Whether you are checking in on investments, revisiting retirement savings, or simply making sure important details have not been overlooked, small conversations now can help support better decisions down the road.
If you have questions or want to talk through any of the items above, consider reaching out to a trusted financial professional. Thoughtful planning is rarely about quick moves. It is about staying aligned with what matters most through every stage of life.
· This tax information is not intended or written to be used, and cannot be used, by the recipient to avoid any federal or state tax penalty that may be imposed upon the recipient. This material is provided for informational purposes only and should not be construed as tax advice. Please consult your tax advisor.
· Past market performance is no guarantee of future investment performance or success.