IMPORTANT: Today's Observations + Your 2025 Year-End Financial Planning Checklist
Timely & time-sensitive information
Today saw a heck of a reversal in the stock market.
After wowing Wall Street last night with yet more blowout earnings and upgraded future estimates, Nvidia went from being up over +5% early in the day to down -3.1% by the close:
The major indices slumped along with Nvidia. And Bitcoin, a bellwether for investors’ risk appetite, got clobbered throughout the day, falling nearly -5%:
Investors who were expecting Nvidia’s outperformance to jump-start the market back into rally mode had their hoped dashed today.
So why am I highlighting this for you?
Because many of the experts I interview who have been skeptical of the sustainability of AI stock valuations have warned us to watch for a moment when Nvidia, the darling of the sector, releases yet-again fantastic results & guidance…and yet, the market fails to muster its usual euphoric response.
Such a moment is the stuff bubble tops are made of.
And we just saw such a moment today.
Now, is this the top of the AI stock run?
Unknowable at this point. We’ll need to let time show us whether it is or not.
But today’s price action *does* demand we pay close attention to what happens next.
My suggestion to you is to take some time in the immediate future to re-evaluate the current positioning of your portfolio and to ask how protected/vulnerable it would be if indeed an AI stock-led market correction happens from here.
Are there any important risk management steps you should consider making now?
If you’d like some help with that, feel free to speak — for free — to one of the financial advisors Thoughtful Money endorses. To set up a discussion with them, simply click the button below and fill out the short form:
AND…don’t forget that Dec 31 is fast approaching, and with it, the year-end deadline for completing any of the following important investment actions (FYI: this list is provided courtesy of our advisor partners at New Harbor Financial):
Tasks to Complete Before December 31, 2025
1. Required Minimum Distributions (RMDs)
Required for retirement account holders age 73+
Inherited IRAs before 2020 require minimum distributions
For inherited IRAs (owner passed away in 2020 or later):
If the original IRA owner died on or after their required beginning date:
You must take distributions in years 1–9, and the full account must be distributed by December 31 of the 10th year following the owner’s death.If the original IRA owner died before their required beginning date:
You have flexibility to take distributions at any point during the 10-year window, as long as the entire account is distributed by the end of the 10th year.
2. IRA Distributions and Roth Conversions
2025 contribution limit: $7,000 ($8,000 if age 50+)
Consider a Roth conversion if you’re in a lower tax bracket this year or want to reduce future RMDs
Accelerating IRA distributions can help with near-term income needs or strategic tax planning
3. Qualified Charitable Distributions (QCDs)
Available for IRA owners age 70½+, up to $108,000 per individual donor.
QCDs can satisfy your RMD while reducing taxable income if you’re 73+
4. Charitable Giving (Cash, Securities, and Other Assets)
Contributions must be made to a qualified 501(c)(3) by December 31st to claim a 2025 deduction
Mutual fund transfers: submit by December 1st
Stocks, ETFs, or bonds: submit by December 15th
5. Realizing Capital Gains or Losses
Short-term gains (held <1 year): taxed as ordinary income
Long-term gains (held >1 year): taxed at preferential rates (0%, 15%, or 20%)
Tax-loss harvesting may offset realized gains
You can replace sold positions with similar investments to maintain market exposure
6. Annual Gifting
2025 annual exclusion: $19,000 per recipient ($38,000 per married couple)
Direct payments to educational or medical institutions are not subject to this limit
7. Maximize Retirement Contributions
401(k)/403(b)/457/SARSEP: $23,500 + $7,500 catch-up (age 50+)
SIMPLE IRA: $16,500 + $3,500 catch-up (age 50+)
Ages 60–63 may qualify for additional “super catch-up” contributions under SECURE 2.0
8. 529 Plan Contributions
Many states offer income tax deductions for contributions made by December 31
Tasks You Can Complete After Year-End
1. SEP IRA and Solo 401(k) Contributions (Self-Employed)
Contribution limits depend on business income and structure
Can be made until your tax filing deadline, including extensions
2. Traditional and Roth IRA Contributions
Limits: $7,000 (under 50) or $8,000 (50+)
Contributions accepted until April 15, 2026 and count toward your 2025 tax year
Roth IRA income phaseouts: $150K–$165K (single) / $236K–$246K (married filing jointly)
3. Health Savings Account (HSA) Contributions
2025 limits: $4,300 (individual) / $8,550 (family) + $1,000 catch-up (age 55+ and not on Medicare)
Contributions accepted until April 15, 2026
Hopefully you found the above useful. I’m always looking for ways to bring you more actionable content in as timely a manner as possible.
Again, I’d like to thank the team at New Harbor Financial for sharing their Year-End checklist with us.
And if they, or any other of Thoughtful Money’s endorsed financial advisors can help you with any of the above, don’t hesitate to request a free discussion with them by filling out the short form here.
We’re increasingly finding ourselves in interesting times in the market. A year that started out quite volatile, then lulled investors back into complacency with a smooth upward ride since May, has suddenly started to whipsaw again.
I’ll keep bringing on the best experts I can to make sense of it all for us in real time.
Your job is to steward your wealth as best you can throughout the twists and turns.
Good luck! And let me know how Thoughtful Money can help you above and beyond what we’re already doing.
cheers,
Adam
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