October Financial Planning Month: 5 Essential Checkups to Secure Your Wealth Before Year-End

Michael Mann
Oct 8
4 min read

As the leaves turn and cooler air settles in, October marks more than just the start of fall—it's National Financial Planning Month, a dedicated time to reflect on your financial health and make proactive adjustments before the year-end rush. In 2025, with markets navigating ongoing volatility and tax deadlines looming, this month offers a timely reset to align your wealth strategy with evolving goals. Whether you're building toward retirement, safeguarding family security, or simply optimizing for efficiency, these five essential checkups can help you stay ahead. Remember, while these steps provide a strong foundation, investing involves risk, including the potential loss of principal, and past performance is no guarantee of future results. Always consult with a qualified advisor to tailor them to your unique situation.

Let's dive into the checkups, complete with actionable steps and real-world considerations to keep your planning balanced and informed.

1. Review Your Portfolio Alignment: Ensure Diversification Amid Market Shifts

Your investment portfolio is the engine of your wealth-building journey, but like any vehicle, it needs regular tune-ups to handle road bumps. Start by assessing whether your asset allocation—stocks, bonds, alternatives—still matches your risk tolerance, time horizon, and objectives. For instance, if inflation lingers around 2.5-3% as projected for late 2025, you might evaluate if your fixed-income holdings are eroding purchasing power.

Actionable Steps:

Pull a recent statement and calculate your current allocation (e.g., 60% equities, 40% bonds).
Rebalance if drifts exceed your threshold from your target, selling overweights and buying underweights.
Stress-test for scenarios like a 10-15% market dip, using tools from your wealth management firm.

Caveats: Market volatility, such as the fluctuations seen in early 2025, can amplify short-term losses during rebalancing, so avoid knee-jerk reactions. This isn't about chasing trends but maintaining discipline—over time, diversified portfolios have historically weathered storms, though no strategy eliminates risk.

2. Maximize Retirement Contributions: Capitalize on 2025's Enhanced Limits

With just three months left in the calendar year, now's your window to supercharge tax-advantaged accounts. The IRS has bumped the 2025 employee contribution limit for 401(k) plans to $23,500 for those under age 50, up $500 from 2024, offering a powerful way to defer taxes and compound growth. If you're 50 or older, add the $7,500 catch-up (or $11,250 if aged 60-63 under new SECURE 2.0 rules), potentially sheltering even more income.

Actionable Steps:

Log into your retirement plan portal and increase payroll deductions to hit the limit—aim for at least enough to capture any employer match.
If self-employed, explore Profit Sharing Plans or SEP IRAs for up to 25% of net earnings (max $70,000 total).
Consider a Roth option if you anticipate higher future brackets, converting traditional funds strategically.

Caveats: Front-loading contributions ties up cash flow, which could strain budgets if unexpected expenses arise. Tax benefits depend on your bracket, and early withdrawals may incur penalties—view this as a long-term play, not a quick fix.

3. Initiate Tax-Loss Harvesting: Offset Gains for Year-End Efficiency

As portfolios wrap up the year, tax-loss harvesting emerges as a classic efficiency tool: sell underperforming assets to realize losses that offset capital gains, potentially reducing your tax bill. Under longstanding IRS rules, you can deduct up to $3,000 in net losses against ordinary income if gains are fully offset, with excess carried forward indefinitely. In a volatile 2025 market, opportunities abound, but timing is key.

Actionable Steps:

Scan portfolio holdings for losers (e.g., individual stocks down 10%+ YTD) and pair them with winners.
Immediately reinvest proceeds into similar (but not "substantially identical") assets to maintain exposure—avoid the 30-day wash-sale rule trap.
Track via software or your advisor to document for Form 8949.

Caveats: Harvesting doesn't create value; it merely defers taxes, and repurchasing errors could trigger audits. Market swings might turn today's loss into tomorrow's gain, so prioritize strategy over speculation—consult a tax professional to avoid unintended consequences.

4. Assess Your Emergency Fund: Build Resilience Against Uncertainties

Life's curveballs—job changes, medical surprises—don't wait for tax season, making a robust emergency fund non-negotiable. Aim for 3-6 months of living expenses in liquid, low-risk assets like high-yield savings or money market funds, especially as the 2025 standard deduction rises to $15,000 for singles (up $400 from 2024), freeing up more for savings.

Actionable Steps:

Tally monthly essentials (rent, groceries, debt payments) and divide by your target coverage.
Automate transfers to a dedicated account yielding 4-5% APY in today's rate environment.
Review for inflation adjustments—bump it if costs have crept up 5-10% since last year.

Caveats: Overfunding ties money to low-growth spots, potentially missing higher returns elsewhere, while underfunding risks forced liquidations at inopportune times. Balance liquidity with opportunity cost, recognizing that no fund size immunizes against prolonged downturns.

5. Update Beneficiaries and Estate Documents: Safeguard Your Legacy

Year-end is ideal for estate checkups, ensuring your wishes endure beyond your lifetime. With the federal estate tax exemption at $13.61 million per person in 2025 (adjusted for inflation), most families focus on simpler tools like wills and powers of attorney, but reviews prevent outdated designations from derailing plans.

Actionable Steps:

Verify beneficiary forms on IRAs, 401(k)s, and life insurance—life events like marriages or births often require updates.
Dust off your will or trust; consider revocable living trusts for probate avoidance.
Discuss with heirs to align on values, perhaps incorporating charitable bequests via donor-advised funds.

Caveats: Estate planning evolves with laws, like potential TCJA sunsets post-2025, so stale documents could lead to disputes or higher taxes. This process uncovers emotional complexities—approach it holistically, without assuming seamless transfers.

By tackling these checkups now, you're not just checking boxes; you're fortifying your path to financial independence in an unpredictable world. October's focus on planning reminds us that small, intentional actions compound into lasting security. Investing involves risk, including the potential loss of principal, and these steps are educational guides, not personalized advice—results vary based on individual circumstances.