End-of-Year Financial Planning for Christians:
Stewardship, Gratitude, and a Merry Christmas
As we approach the end of another year, I want to take a moment to wish you and your family a very Merry Christmas filled with the joy, peace, and hope that only Christ can bring. This season reminds us that our greatest blessings aren't found in our bank accounts, but in our relationships: with God, our families, and our communities. Yet as faithful stewards, we're also called to be wise with the resources God has entrusted to us. The end of the year presents a unique opportunity to review our financial lives through the lens of biblical stewardship, ensuring we're positioned well for the year ahead while honoring God with our decisions.
The Heart of Christian Stewardship
Before diving into the practical aspects of year-end planning, let's remember the foundation: everything we have belongs to God. We're not owners but stewards, called to manage His resources faithfully. This perspective transforms how we approach financial decisions, moving us from anxiety about money to confidence in God's provision. The parable of the talents in Matthew 25 reminds us that God expects us to be wise and intentional with what He's given us. This doesn't mean being reckless or overly conservative: it means being thoughtful, prayerful, and strategic in our approach to financial planning.
Key Areas for Year-End Review Retirement Accounts: IRAs and 401(k)s
Your retirement accounts need attention before December 31st. If you're 73 or older, you must take your Required Minimum Distribution (RMD) to avoid hefty penalties. For 2025, the penalty is 25% of the amount you should have withdrawn: that's money that could have gone to kingdom work instead of the IRS. Consider these questions: Are your retirement investments aligned with your faith values? Many Christians don't realize their 401(k) might be invested in companies that conflict with their beliefs. We help families review their holdings and make adjustments when needed. You can learn more about this in our post on faith-based 401(k) strategies.
Joint Accounts and Trust Planning
Year-end is an excellent time to review your estate planning documents. Have there been changes in your family? New grandchildren? Changes in financial circumstances? Your will, trust documents, and beneficiary designations should reflect your current situation and values. For married couples, consider whether your account titling makes sense. Joint accounts with rights of survivorship can simplify things for your spouse, but they're not always the best choice for every family's situation.
Social Security Strategy
If you're approaching retirement, now is the time to finalize your Social Security claiming strategy for next year. The decisions you make about when to start benefits can impact your family's financial security for decades. This isn't just about maximizing dollars: it's about being wise stewards of the system God has provided.
Home and Mortgage Considerations
With mortgage rates remaining elevated, many families are reconsidering their housing strategies. Should you pay off your mortgage early? Refinance? Consider downsizing? These decisions have both financial and spiritual implications. Sometimes the peace of mind that comes with owning your home outright is worth more than the potential investment returns you might earn elsewhere.
Insurance Review
Your insurance needs change over time. As your children become financially independent, you might need less life insurance. As you age, you might need more long-term care coverage. December is a great time to review your coverage with fresh eyes, ensuring you're protecting what matters most without overpaying.
Planning for Children and Grandchildren
Many Christian families want to leave a legacy that extends beyond money: they want to pass on their faith and values. This might involve setting up education funds, teaching financial responsibility, or creating opportunities for the next generation to experience biblical generosity firsthand. Consider whether a 529 education savings plan makes sense for your family. These accounts offer tax-free growth when used for qualified education expenses, and many states offer tax deductions for contributions made before year-end.
Year-End Tax Planning Opportunities
Smart tax planning isn't about avoiding our civic responsibilities: it's about being wise stewards who pay what we owe while maximizing what's available for our families and God's work. Charitable Giving: If you're planning to make charitable contributions, doing so before December 31st can provide tax benefits for this year. Consider bunching multiple years of giving into one year to maximize your deduction, or explore donor-advised funds for more flexible giving strategies. Tax-Loss Harvesting: In taxable investment accounts, you might benefit from realizing losses to offset gains. This strategy, called tax-loss harvesting, can reduce your current tax bill while positioning your portfolio for future growth. Roth Conversions: If you have traditional IRA or 401(k) funds, converting some to a Roth account might make sense, especially if you're in a lower tax bracket this year. Roth accounts grow tax-free and don't have RMDs, which can be a blessing for your estate planning. Maximize Retirement Contributions: You have until December 31st to maximize your 401(k) contributions for 2025. The limit is $23,500, with an additional $7,500 catch-up contribution if you're 50 or older. For SEP-IRAs and other business retirement plans, you generally have until the tax filing deadline.
A Faith-Centered Approach to Financial Goals
As you look toward 2026, consider setting financial goals that reflect your faith values:
- Generosity Goals: What percentage of your income will you give next year? Many families find joy
in gradually increasing their giving as God blesses them.
- Debt Freedom: If you're carrying debt, create a plan to eliminate it. Debt can limit your ability to
be generous and responsive to God's calling.
- Emergency Fund: Build or maintain an emergency fund of 3-6 months of expenses. This isn't
showing lack of faith: it's being wise and prepared.
- Legacy Planning: What kind of financial legacy do you want to leave? This includes both the resources you pass on and the values you instill.
Your Next Steps The end of the year can feel overwhelming with all these considerations, but you don't have to navigate them alone. If you'd like a second opinion on your retirement plan or want to discuss how to align your investments with your faith values, we're happy to offer a complimentary consultation without any obligation.
Here's what I recommend you do before December 31st:
1. Review your retirement account beneficiaries and update them if needed 2. Calculate your required minimum distributions and take them if necessary 3. Consider your charitable giving strategy for both this year and next 4. Schedule a year-end tax planning conversation with your CPA or tax advisor 5. Pray over your financial goals for the coming year, asking God for wisdom and guidance Good stewardship means making intentional, not emotional, financial decisions. We help retirees create durable income strategies designed to weather uncertain markets while staying true to their faith values. Now is also a strategic time to review tax-efficient planning opportunities before year-end. Whether that's maximizing retirement contributions, implementing charitable giving strategies, or positioning your portfolio for the year ahead, taking action now can benefit you for years to come. Remember, this commentary reflects publicly available data and third-party research believed to be reliable but cannot be guaranteed. All market commentary reflects information as of the date of publication. We do not make market predictions, as investing involves risks including loss of principal; diversification does not ensure a profit or guarantee against loss. If you're ready to take the next step, I invite you to contact us to schedule a complimentary consultation. We're here to help you navigate these important decisions with wisdom, integrity, and a commitment to your values. As we celebrate this Christmas season, may you find peace in knowing that your financial future is built on the solid foundation of biblical principles, wise planning, and trust in God's continued provision. From our family at Matt25 Capital to yours, Merry Christmas and God's richest blessings in the year ahead. About the Author: William Snodgrass is President of Matt25 Capital, fiduciary asset managers serving Christian families through Commonwealth Financial Network®, a FINRA/SEC-registered brokerdealer. With a passion for helping believers align their financial decisions with their faith values, William brings both professional expertise and biblical wisdom to retirement and investment planning. For more insights on Christian financial planning, visit our blog or learn more about our approach. Disclosures
- Matt25 Capital is affiliated with and offers services through Commonwealth Financial Network®, a
FINRA/SEC-registered broker-dealer.
- This material is for informational purposes only and is not intended as, and should not be construed as, tax, legal, or accounting advice. Consult your tax professional and/or attorney regarding
your specific situation. Any consultation referenced herein is complimentary and without obligation.
- Investing involves risks including loss of principal; diversification does not ensure a profit or guarantee against loss.
- The information presented reflects publicly available data and third-party sources believed to be
reliable; however, accuracy and completeness cannot be guaranteed. All opinions are as of the date of publication and subject to change without notice.
- Examples are hypothetical and for illustrative purposes only and are not predictions or guarantees
of future results.