Millionaires Make These 7 Year-End Money Moves: You Should Too

Wealthy individuals didn’t build and maintain their fortunes by chance. Strategic financial planning is key, especially as the year comes to a close.

The good news? These smart moves aren’t exclusive to the ultra-rich—they’re accessible to anyone willing to plan ahead.

Here are seven powerful year-end money moves inspired by the wealthy that can help you level up your finances.

1. Maximize Retirement Contributions

Wealthy individuals prioritize retirement savings, taking advantage of tax benefits and compounding growth. If you haven’t hit the contribution limit for your 401(k) or IRA, now is the time.

For 2024, you can contribute up to $23,000 to a 401(k)—plus an additional $7,500 if you’re over 50.

If you’re expecting a year-end bonus, allocate some of it toward your retirement accounts for a double win.

Pro tip: If your savings exceed $100,000, maybe now’s the time to talk to a professional advisor. Free matching services like SmartAsset can hook you up with up to three vetted, fiduciary advisors within minutes.

2. Consider Roth Conversions

Roth conversions are a year-end move favored by the wealthy, particularly during years when you’re in a lower tax bracket. Converting traditional IRA or 401(k)s into a Roth account lets you pay taxes now in exchange for tax-free withdrawals later.

This strategy lowers future required minimum distributions (RMDs), builds tax-free wealth, and can simplify estate planning.

Pro tip: This is also a good time to make sure your estate planning is up to date. Services like Trust & Will can help without charging you an arm and a leg.

3. Review Insurance Coverage

Year-end is the perfect time to review your insurance policies. Whether you need health, life, disability, or home insurance, ensuring you have the right coverage can protect your assets, your health and your loved ones.

For instance, reassess life insurance options if you’ve experienced life changes like marriage, having a child, or a career switch. The right adjustments could lead to better coverage and potential savings.

Pro tip: There are plenty of free comparison sites that will help you find the best deals on life insurance, like this one from Money.com. They also have a comparison site for home insurance. The end of the year is a good time to compare policies and see if you’re paying too much.

4. Plan for Education Costs

Higher education is expensive, and the wealthy often prepare well in advance. If you’re saving for college expenses, consider contributing to a 529 plan before December 31.

These tax-advantaged accounts grow tax-free when used for qualified education expenses.

If education is part of your long-term plan, start strategizing now to take advantage of state tax benefits and compound growth over time.

5. Lock in Higher Interest Rates

If you have interest-bearing accounts, now is the time to secure high rates with investments like Treasury bills or high-yield CDs.

Rates are expected to drop, so locking in favorable returns now can maximize your savings potential.

This is a low-risk way to grow your money and preserve your wealth.

Pro tip: The Money.com CD table will show you the best rates around. They also have Savings Account Comparisons

6. Consider Tax-Loss Harvesting

Tax-loss harvesting is a smart way to reduce tax liability on capital gains. By selling underperforming investments, you can offset gains with losses and reduce your taxable income.

Even if your losses exceed your gains, you can deduct up to $3,000 against other income and carry forward unused losses for future tax years.

7. Make Charitable Contributions

Giving to charity doesn’t just benefit others—it can also help you save on taxes. Donating appreciated stock allows you to avoid paying capital gains tax, and bundling donations into a donor-advised fund can help you exceed the itemized deduction threshold.

If you’re over 70½, you can use a qualified charitable distribution (QCD) from your IRA to donate directly to a nonprofit, satisfying your RMD while avoiding taxable income.

Small Moves, Big Impact

You don’t need a massive bank account to take advantage of these strategies.

By implementing even a few of these money moves, you can build wealth, reduce taxes, and set yourself up for financial success in the coming year.