By Daniel Korleski, MBA
The final months of the year are a natural time to check in on your finances. You still have time to make certain tax moves, use employee benefits that may expire, review your investments, and address anything you’ve been putting off.
A few end-of-year financial actions now can also help you head into 2027 with a clearer idea of where you stand. Here are five areas to review before December 31.
1. Assess Your Emergency Fund
Start with the money you have set aside for unexpected expenses. A common guideline is to keep three to six months of essential living expenses in an emergency fund, although the right amount depends on your circumstances.
If you’re self-employed, rely on commission or seasonal income, or have a single-income household, you may feel more comfortable keeping additional cash available.
Emergency savings should also be easy to access when you need them. Consider keeping this money in an FDIC-insured savings or money market deposit account that offers a competitive interest rate while maintaining the liquidity an emergency fund requires.
2. Review Your Asset Allocation
The end of the year is also a good opportunity to look at how your portfolio is invested. Market performance throughout the year can shift the mix of stocks, bonds, and other investments away from the allocation you originally intended.
Review whether your current investments still reflect your goals, time horizon, liquidity needs, and tolerance for risk. If your circumstances have changed or your portfolio has drifted significantly, you may want to consider whether rebalancing makes sense.
3. Consider Charitable Donations
If charitable giving is already part of your plans, year-end can be a good time to decide when and how you want to make those gifts.
Beginning in 2026, taxpayers who don’t itemize may deduct up to $1,000 in qualifying cash charitable contributions, or $2,000 for married couples filing jointly. Different rules apply to taxpayers who itemize, including a new 0.5%-of-adjusted-gross-income floor for charitable deductions.
Depending on your circumstances, you may also want to consider donating appreciated investments or bunching several years of charitable contributions into one year. These strategies can have different tax consequences, so coordinate charitable giving with your tax professional before making larger year-end gifts.
4. Use Your Employee Benefits
Some employee benefits expire or reset at the end of the year. Take a few minutes to review what you have available so you don’t unintentionally leave valuable benefits unused.
Medical and Dental Benefits
If you’ve been putting off medical or dental care you already need, review your health plan before scheduling it. Deductibles and annual dental benefits often reset with the new plan year, although the details depend on your specific coverage.
Flexible Spending Account
If you have a flexible spending account (FSA), check your remaining balance and your employer’s rules. For 2026, employees can contribute up to $3,400 to a health FSA. If your employer’s plan allows unused funds to carry over, the maximum permitted carryover from 2026 into 2027 is $680.
Not every plan offers a carryover, so check your plan before assuming unused money will still be available next year. If you have funds that will expire, review which eligible expenses you can pay before the deadline.
Sick and Vacation Time
Paid time off policies also vary by employer. Check with your HR department to find out whether unused vacation or sick time carries into 2027 or whether any of it expires at year-end.
If you have time that won’t carry over, consider using it for a break, appointments you’ve been meaning to schedule, or simply some well-earned time away from work.
5. Revisit Your Plans and Policies
Your financial life can change considerably over the course of a year. Marriage, divorce, a new child or grandchild, retirement, a home purchase, or changes in your finances may all be reasons to revisit your estate plan and insurance coverage.
Review your estate documents periodically and after major life events to make sure they still reflect your wishes. It’s also a good idea to check the beneficiaries listed on retirement accounts and insurance policies.
Your insurance needs can change as well. Paying off a mortgage, retiring, changing jobs, or seeing your family circumstances change may be reasons to reassess how much coverage you need. Depending on your situation, you may also want to review disability or long-term care coverage.
Ready to Review Your End-of-Year Financial Actions?
You don’t need to overhaul your entire financial life before December 31. Instead, use these end-of-year financial actions to identify anything that needs your attention now and what can become part of your financial priorities for 2027.
At Cobalt Private Wealth, we can help you review your finances, identify areas that may need attention, and plan for the year ahead. To schedule a conversation, reach out to me at danielkorleski@cobaltprivatewealth.com or 719-332-3863 to schedule a meeting.
About Dan
Daniel Korleski is the President and CEO of Cobalt Private Wealth, leveraging over 30 years of industry experience (including managing over $2 billion at Wells Fargo) to help clients protect their wealth and strengthen their financial futures. An MBA graduate and member of the CFA Society Colorado, Dan is a dedicated community leader who recently completed an eight-year tenure on the board of Catholic Charities of Central Colorado, where he helped raise $13 million to convert an abandoned school into 24 apartments for homeless families.
