Your 2025 Year-End Financial Checklist

Vickie Messman is a planning excellence lead consultant at Northwestern Mutual.

Life is busy, but now is the right time to give yourself—and your family—the financial head start you deserve. Don’t wait for the perfect time because the right time is right now.

Make next year your best year with the help of your Northwestern Mutual financial advisor. They’ll help free you from any financial regrets and turn your blind spots into opportunities. That way, you can go into 2026 feeling even better about your money.

2025 year-end checklist

Secure your future

Here are some important steps to consider as you work with your advisor to secure your future.

Top off your emergency fund: As the year winds down, it’s a good time to refill your “rainy day fund” if you’ve tapped into it during the past year. If you haven’t opened one, start it now. Aim to set aside three to six months’ worth of expenses in an account that you can access easily to cover unexpected bills. Having these funds at the ready can help you cover surprise expenses—such as car repairs or medical expenses—without relying on high-interest credit cards or dipping into long-term savings.

Review your insurance policies: Maybe you started a new job or got a promotion with a larger paycheck. Or maybe 2025 was the year you had a child. Big moments like these can mean you have more to protect. Depending on your situation, you may want to consider upping your life insurance and disability insurance coverage. And remember to update beneficiaries on existing policies and accounts.

Time for a health care checkup: October through December is typically open enrollment for health care coverage. Review the current coverage in your health plan and compare it with new plan options to make the best choices for yourself and your family. If you have a health savings account (HSA), you may want to max out annual contributions ($4,300 for an individual on a high-deductible plan and $8,550 for families in 2025). That way, you maximize the triple tax advantages—money goes in tax-free, grows tax-free and comes out tax-free for qualified health care expenses. If you’re at least 55 years old, you can contribute an extra $1,000 to your HSA.

If you have a flexible spending account (FSA), you usually need to spend your contributions by the end of the year. Check your spending deadline because you can only carry over up to $660 into 2026.

Check in on your investments

Investing for growth is a key part of building your nest egg for big future costs like retirement. Whether retirement is just around the corner or you have a long career ahead, there are a few things to consider every year.

Adjust your portfolio: You’ll want to regularly check that your portfolio’s asset allocation (the mix of stocks, bonds and other assets) still reflects a level of risk that fits with your goals and investment horizon. If not, consider updates to bring your portfolio back in line with your risk tolerance and goals.

Recognize capital gains or losses: Selling investments at a loss hurts but can also reduce your taxable income for the year. This is called tax-loss harvesting. Depending on your situation, you may also want to sell investments that have appreciated and realize gains. It’s a good idea to work with your financial advisor or tax attorney to think strategically about when it makes the most sense to recognize capital gains or losses.

Top off retirement contributions: Up your contributions to your retirement account if you can. Try to raise them every year until you’re contributing the maximum allowed amount to an IRA, 401(k), 403(b) or their Roth counterparts. These accounts offer tax advantages that can help your money go further over time.

Review your budget

A little planning can help you get the most out of your budget. Right now is the right time to look at your spending plan and adjust it for the upcoming year.

Look over your cash flow: Review your spending this past year and update how you plan to use your money in 2026 and beyond. Tracking your spending is a great way to see where your money is going and can help you prioritize those things that are most important to you. If you don’t have a budget in place, now is the time to create one.

Review rates on outstanding debt: As interest rates fluctuate, it’s smart to review the current interest rate of your outstanding loans, such as mortgages, personal loans and credit cards. Prioritize paying off high-interest debt, and think about refinancing to lower interest rates.

Prep for big events: Maybe next year will bring a wedding, surgery, vacation, new car or new home. If you’re planning a big-ticket expense, add that into your budget and start setting aside money.

Check your credit: Check your credit score and make sure it’s where you want it to be (typically 740 and higher is considered very good). And request your credit report. You can get a free copy once every 12 months—and you can check your credit report once a week for free—at AnnualCreditReport.com.

Lean on your financial advisor

This list is a good starting point. But your Northwestern Mutual financial advisor knows you and your goals and can provide tailored advice.

If you already have a financial plan in place, it’s good to check in on it yearly. Remember, a well-rounded plan goes beyond growing your wealth to include strategies that help protect you from common risks. A good plan also compares a variety of future scenarios so you can envision potential risks and opportunities.

If you don’t have a plan yet, get one! Developing—and following—a good plan can help put you on the best path to achieving your goals.

This publication is not intended as legal or tax advice. Financial representatives do not render tax advice. Consult with a tax professional for advice that is specific to your situation.