By Tim Ellis, CPA/PFS, CFP® and Greg Davis, CPA, CFP®
As the year comes to a close, many people are looking forward to spending the holidays with family, traveling, or just enjoying a seasonal change of pace. However, it’s also important to set aside time for year-end planning.
Taking a last look at your finances before the new year may help you save money on your taxes. It can also set you up for a smoother, more financially rewarding 2026.
Not sure how to start? The following steps can help you kick off your year-end planning.
Key Financial Steps to Review Before December 31
To start your year-end planning journey, take these critical steps before December 31:
- Review 401(k) contributions and make any additional contributions.
- Take any required minimum distributions (RMDs) from tax-advantaged accounts.
- Use up remaining funds in flexible spending accounts (FSAs).
- Harvest your tax losses.
If you’re concerned about missing important steps or you want to sharpen your financial strategy before the end of the year, get in touch to see how we may be able to help.
How Charitable Giving and Taxes Factor Into Year-End Planning
Year-end tax strategies are a key part of any financial plan. For many of our clients, charitable giving is a key part of their tax strategy (and overarching financial plan). If you’re hoping to lower your taxes while also getting into the giving spirit, these are a few moves to consider:
“Bunching” Donations
If you’re just under the threshold for the standard deduction, consider “bunching” multiple years of charitable donations into one. Doing this may push you over the standard deduction threshold, ultimately saving you money on taxes.
There’s also an important change coming. New provisions in the OBBBA take effect in 2026 which will reduce charitable deductions by 0.5% of adjusted gross income. Additionally, itemized deductions, including charitable gifts, will be limited to a 35% deduction rate, even for taxpayers currently in the 37% bracket.
With those rules on the horizon, it may be worth front-loading some of your 2026 charitable giving into the 2025 tax year, when deduction treatment is still more favorable.
Setting Up a Donor-Advised Fund (DAF)
If charitable giving is important to you and you want to make it a family tradition, you might consider establishing a donor-advised fund as part of your year-end planning. Here’s how the process works:
- You open and fund a giving account.
- You receive an immediate tax deduction.
- Over time, you recommend charitable grants.
Once the funds are deposited into the account, they no longer belong to you. (That’s why you “recommend” charitable grants instead of making them yourself.) However, giving up direct control of the funds also means you receive an immediate tax benefit.
Donating Appreciated Assets
If you want to make the most of your charitable contributions, consider donating appreciated stocks or other assets instead of cash. This strategy has several key benefits:
- You don’t have to pay capital gains tax on the donation.
- You can deduct the full appreciated value from your taxes.
- The charity receives the full appreciated value of the asset.
When you donate an appreciated asset instead of selling it and donating the proceeds, both you and your intended recipient can enjoy the benefits.
Why Preparing Now Can Create a Smoother Start to 2026
It’s easy to put off year-end planning until the start of 2026. However, taking the time to prepare now can help you start the new year on the right foot. Some important tax deadlines fall on December 31, so if you look at your year-end tax strategies now, you’ll still have time to make adjustments.
Doing your year-end planning now can also help you go into the new year with confidence and clarity. When the ball drops and 2026 begins, you won’t have to scramble to put a plan together. You’ll be ready to begin.
Need Help With Year-End Planning?
Year-end planning is often more complex than it seems. Fortunately, you don’t have to create your financial plan on your own. At RBG Wealth Advisors, we help our clients craft year-end tax strategies and road maps for a financially sound 2026.
Each member of our team has the market knowledge, experience, and resources to help you progress toward your financial goals. We take the time to get to know you, not only providing a foundation of trust, but also seeking to uncover new opportunities for growth.
To get in touch, call (901) 244-2980, email info@rbgwa.com, or contact us online.
Frequently Asked Questions
Why is year-end planning so important for my financial health?
Year-end planning helps you take advantage of tax-saving opportunities, verify your retirement contributions are on track, and make strategic financial decisions before key deadlines. By reviewing your finances now, you enter 2026 with greater clarity and confidence.
What should I focus on first when starting my year-end planning?
A great starting point is reviewing retirement contributions, required minimum distributions, and potential tax-loss harvesting opportunities. These essential steps help your year-end planning cover both tax efficiency and long-term financial goals.
How can charitable giving support my year-end planning strategy?
Charitable giving can be a powerful year-end planning tool. Strategies like donating appreciated assets, bunching contributions, or using a donor-advised fund may help reduce your taxable income while supporting causes you care about.
About Tim
Tim Ellis, CPA/PFS, CFP®, is Chief Investment Officer and Wealth Advisor at RBG Wealth Advisors, a locally owned, independent, fee-only registered investment advisory firm in Memphis, TN. As a founding partner, Tim helped launch the firm in strategic partnership with Reynolds, Bone & Griesbeck PLC, aligning comprehensive wealth management with century-strong tax expertise for a fully integrated client experience.
With more than a decade of experience in public accounting and wealth management, Tim specializes in helping families and institutions grow and protect a lifetime of assets. He advises clients on investment management, retirement planning, tax-efficient strategies, estate planning, and charitable giving. As CIO, he chairs the firm’s investment committee and leads portfolio construction and asset allocation to ensure each strategy supports clients’ goals.
Guided by a simple philosophy (Be positive. Be thoughtful. Use the Golden Rule.), Tim delivers calm, thoughtful guidance that gives clients confidence and peace of mind. He enjoys helping clients reach milestones such as retirement, purchasing a second home, or planning a lasting legacy. He regularly contributes to RBG Wealth Advisors’ Wealth Weekly and has been featured in Barron’s, CNBC Make It, The Commercial Appeal, Memphis Flyer, and Authority Magazine. Tim is active professionally, with leadership experience in the Tennessee Society of CPAs and the Financial Planning Association of Greater Memphis, and is a member of the AICPA.
Tim holds a Master of Accountancy and a Bachelor of Accountancy with a minor in Managerial Finance from the University of Mississippi and maintains the Certified Public Accountant (CPA), CERTIFIED FINANCIAL PLANNER®, and Personal Financial Specialist (PFS™) certifications. Originally from the Mississippi Delta, Tim has made Memphis his home and values its culture and community. He and his wife, Mary Agnes, have four children, Wilkes, Edie, Mary Wright, and Oliver, as well as a goldendoodle, Penny. Outside the office, he enjoys cheering on Ole Miss sports, golfing, hunting, or relaxing at any spot with a beach and a golf course. To learn more about Tim, connect with him on LinkedIn.
