What is a fiduciary financial advisor, and is Patten Financial Group one?

Yes — as fiduciaries through our affiliation with Redhawk Wealth Advisors, Inc. (an SEC-registered Investment Adviser), we are legally required to act in your best interest at all times. We put your interests above our own, avoid conflicts of interest, disclose any potential issues, and provide accurate, thorough advice.

How do you get paid, and are you fee-only?

We operate as a fee-based fiduciary firm with transparent compensation focused on your success. This structure helps minimize conflicts and aligns our interests with yours, so you always know how and what you're being charged.

I'm not happy with my current financial advisor or wirehouse. How do I know if it's time to switch?

Common signs include: you rarely hear from your advisor outside of account statements, you're not sure exactly what you're being charged or why, your portfolio hasn't been reviewed against your current goals in over a year, you've been passed between different advisors at the same firm, or you feel like a number rather than a relationship. If any of that sounds familiar, a complimentary second-opinion conversation can help you see where you stand — with no obligation to move anything.

What's the difference between a fiduciary advisor and a wirehouse broker?

A fiduciary is legally required to act in your best interest at all times. Many wirehouse brokers, by contrast, are held only to a 'suitability' standard, meaning a recommendation only has to be reasonable for your general situation — not necessarily the best available option — and may be influenced by commissions or proprietary products. As fiduciaries, we don't have that conflict: our recommendations are based on what's best for you, and our fees are transparent.

Do you work with high-net-worth individuals, executives, and business owners?

Yes. A significant part of our practice is dedicated to executives, business owners, and pre-retirees and retirees with more complex financial pictures — including concentrated stock positions, equity compensation, business succession and exit planning, tax strategy, and estate planning coordination alongside retirement income planning.

Is switching financial advisors complicated?

It's more straightforward than most people expect. In most cases, assets transfer directly between custodians without you needing to liquidate anything, and we handle the paperwork alongside you. We'll walk you through exactly what to expect before you decide to move forward.

Important Year-End Planning: Strategies for Retirement, Financial, Insurance, and Tax Optimization

Dec 10

Written By Aaron Patten

As 2025 draws to a close, it’s an ideal time to review your overall financial health and make adjustments that could benefit you in the coming year. Year-end planning allows you to maximize contributions, minimize taxes, and ensure adequate plans are in place. Below, we outline key considerations across retirement, financial, insurance, and tax planning. Remember, deadlines like December 31 often apply, so act promptly.

Retirement Planning

Year-end is a critical period for boosting your retirement savings, especially with contribution deadlines approaching. Maximizing tax-advantaged accounts can help proactively plan your future while potentially reducing your current tax burden.

• Maximize Contributions to Employer-Sponsored Plans: For 2025, the employee contribution limit for 401(k) plans is $23,500 if you’re under 50, with an additional $7,500 catch-up contribution for those 50 and older, bringing the total to $31,000. The combined employee and employer contribution limit is $70,000 (or $77,500 with catch-up). If your plan allows, consider after-tax contributions for potential Roth conversions.

• Fund Your IRA: Traditional or Roth IRA contributions for 2025 are limited to $7,000 for those under 50 and $8,000 for those 50 and older. You have until April 15, 2026, to make 2025 contributions, but funding now ensures you don’t miss out.

• Consider Roth Conversions: If you’re in a lower tax bracket this year, converting traditional IRA funds to a Roth could allow for tax-free growth and withdrawals in retirement. Be mindful of the tax implications, as converted amounts are taxable in the year of conversion.

• Check Required Minimum Distributions (RMDs): If you’re 73 or older, ensure you’ve taken your 2025 RMD by December 31 to avoid penalties. Qualified charitable distributions (QCDs) can satisfy RMDs while excluding the amount from taxable income.

• Review and Consolidate Accounts: Assess old 401(k)s from previous employers and consider rolling them into an IRA for better management and potentially lower fees.

Financial Planning

Beyond retirement, year-end is a chance to strengthen your overall financial foundation. Focus on budgeting, debt, and investments to enter 2026 on solid footing.

• Rebalance Your Investment Portfolio: Market fluctuations may have shifted your asset allocation. Review and adjust to align with your risk tolerance and goals, potentially harvesting gains or losses for tax efficiency.

• Build or Bolster Your Emergency Fund: Aim for three to six months’ worth of living expenses in a liquid account to cover unexpected events like job loss or repairs.

• Manage Debt Strategically: Pay down high-interest debt, such as credit cards, before year-end. If refinancing makes sense, explore options for mortgages or student loans.

• Update Your Budget and Goals: Reflect on 2025 spending patterns and set realistic financial goals for 2026, such as saving for a home or education. Tools like tracking apps can help.

• Plan for Upcoming Changes: With potential tax law shifts from legislation like the One Big Beautiful Bill Act (OBBBA) affecting 2026, consider how they might impact your long-term strategy.

Insurance Planning

Insurance protects against risks, and year-end often coincides with open enrollment periods. Reviewing coverage ensures you’re adequately protected without overpaying.

• Health Insurance Review: If your employer’s open enrollment is ending, select plans that match your anticipated 2026 needs. Consider funding Health Savings Accounts (HSAs) up to $4,000 for individuals or $8,000 for families (plus $1,000 catch-up for 55+). HSAs offer triple tax advantages.

• Life and Disability Insurance: Assess if your coverage aligns with life changes, like marriage or children. Term life policies might be cost-effective for temporary needs.

• Property and Casualty Insurance: Review home, auto, and umbrella policies for adequate limits and discounts. Bundling can save money.

• Long-Term Care Considerations: If you’re approaching retirement age, evaluate options for long-term care insurance to protect assets from healthcare costs.

• Flexible Spending Accounts (FSAs): Use any remaining FSA funds before they expire, as most don’t roll over.

Tax Planning

Effective tax planning can reduce your 2025 liability. With inflation adjustments and potential law changes, strategic moves now pay off at filing time.

• Understand 2025 Tax Brackets: Federal income tax rates remain at 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Standard deductions are $15,000 for singles/married filing separately, $22,500 for heads of household, and $30,000 for married filing jointly.

• Tax-Loss Harvesting: Sell underperforming investments to offset capital gains, reducing taxable income by up to $3,000 (excess carries forward).

• Charitable Contributions: Donate appreciated securities or cash by December 31 to claim deductions. Bunch donations if near the standard deduction threshold. Note upcoming OBBBA changes may introduce a charitable floor in 2026.

• Maximize Deductions and Credits: Prepay property taxes or medical expenses if itemizing. Explore education credits or energy-efficient home improvements.

• Gift Strategically: The 2025 annual gift tax exclusion is $18,000 per recipient. Gifting can reduce your estate while helping family.

Conclusion

Year-end planning is about proactive steps to enhance your financial future. By addressing retirement contributions, financial basics, insurance needs, and tax strategies, you position yourself for a stronger 2026. However, this is not exhaustive, and personal advice is essential. Reach out to a certified professional to tailor these ideas to your situation. Here’s to a prosperous new year!

Disclaimer: This article provides general information for educational purposes only and is not intended as personalized financial, tax, retirement, or insurance advice. Laws and regulations can change, and individual circumstances vary. Always consult with qualified professionals, such as a financial advisor, tax expert, or insurance specialist, before making decisions.

Investment advisory services offered through Redhawk Wealth Advisors, Inc., an SEC

Registered Investment Advisor. SEC Registration does not imply any level of skill or

understanding. Redhawk Wealth Advisors and Patten Financial Group are unaffiliated and

separate legal entities.

Aaron Patten

Important Year-End Planning: Strategies for Retirement, Financial, Insurance, and Tax Optimization

Patten Financial Group

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Important Year-End Planning: Strategies for Retirement, Financial, Insurance, and Tax Optimization

Financial Resolutions for 2026: Setting Achievable Goals

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Patten Financial Group

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