Why Year-End Financial Planning Matters
December is a critical month for Canadian investors and financial planners. With several important deadlines approaching and tax year ending, taking action now can save you thousands in taxes and set you up for a stronger financial position in 2026. This comprehensive checklist covers everything you need to review before December 31, 2025.
⚠️ Critical Deadlines
Tax Optimization Before Year-End
Strategic tax planning before year-end can significantly reduce your tax bill and maximize your after-tax wealth. Here are the key strategies to consider.
Tax-Loss Harvesting
If you have investments that have lost value, consider selling them before December 31 to realize capital losses. These losses can offset capital gains and reduce your tax bill.
RRSP Contribution Strategy
While you have until March 1, 2026 to contribute to your RRSP for 2025 tax deduction, contributing before year-end gives your money more time to grow tax-deferred.
Critical Contribution Deadlines
Missing contribution deadlines means losing valuable tax-advantaged room forever. Here's what you need to know about each account type.
Account Contribution Checklist
TFSA Contributions
Deadline: December 31, 2025
2025 Limit: $7,000 (plus any unused room from previous years)
FHSA Contributions
Deadline: December 31, 2025
2025 Limit: $8,000 (doesn't carry forward if unused)
RRSP Contributions
Deadline: March 1, 2026 (for 2025 tax year)
2025 Limit: 18% of 2024 income, up to $32,490
Portfolio Review and Rebalancing
Year-end is the perfect time to review your investment portfolio, assess performance, and rebalance to maintain your target asset allocation.
Portfolio Review Checklist
Review Asset Allocation
Compare your current allocation to your target. Market movements may have shifted your percentages—rebalance if needed.
Assess Performance
Review how your investments performed relative to benchmarks. Identify underperformers and consider if changes are needed.
Review Fees and Costs
High fees erode returns over time. Consider switching to lower-cost options like ETFs if you're paying high mutual fund fees.
Update Beneficiaries
Ensure all your accounts have up-to-date beneficiary designations. Life changes may require updates to your RRSP, TFSA, and insurance policies.
Insurance and Protection Review
Your insurance needs change as your life evolves. Year-end is an ideal time to review your coverage and ensure you're adequately protected.
Insurance Review Checklist
Debt and Cash Flow Strategy
Reviewing your debt situation and cash flow before year-end helps you start 2026 on stronger financial footing.
Year-End Debt Review
Preparing for 2026
While focusing on year-end tasks, don't forget to set yourself up for success in 2026. Planning ahead now makes the new year smoother.
2026 Preparation Checklist
Set 2026 Financial Goals
Define specific, measurable goals for savings, debt reduction, and investments. Write them down and create an action plan.
Automate 2026 Contributions
Set up automatic monthly contributions to TFSA, RRSP, and FHSA. Automation ensures you don't miss opportunities and builds wealth consistently.
Review and Update Your Will
Ensure your will and estate planning documents are current. Life changes may require updates to reflect your current wishes.
Schedule Annual Review
Book a review with your financial advisor early in 2026 to assess progress and adjust strategies as needed.
Don't Wait Until the Last Minute
Many of these tasks require time to complete properly. Starting now ensures you don't miss deadlines and can make informed decisions rather than rushed ones.
Completing this year-end financial checklist can save you thousands in taxes, optimize your investment strategy, and set you up for a stronger financial position in 2026. Don't let these opportunities pass you by.
If you need help with any of these year-end tasks or want personalized guidance on optimizing your financial situation, consider booking a free 15-minute consultation. We can help you prioritize actions and ensure you don't miss any important deadlines.
