Year-End Money Moves Retirees Should Avoid

MoneyTalksNews recently rounded up financial advisors around the country to highlight the most common—and costly—year-end mistakes retirees make, especially when emotions run high or tax deadlines loom. Among the key missteps: over-gifting to loved ones, rushing into Roth conversions, dabbling in risky assets like crypto, panic-selling investments, missing out on tax-saving deadlines, giving to charity without tax strategy, and forgetting to update beneficiary designations.

The article spotlights my perspective on holiday gifting, noting the powerful mix of good cheer and worry-free intentions that can push retirees to give more than they can truly afford—or more than the IRS allows before gift taxes kick in. As I emphasized, “Before transferring significant sums, confirm it fits your financial plan—and double-check relevant IRS limits.” For 2025, the gift-tax exclusion per person is $19,000, but even the most generous gesture can backfire if it derails your own long-term security or taxes become an unexpected issue.

Other experts in the piece warn against hurried Roth IRA conversions at year’s end without understanding the tax impact, and treating digital assets like lottery tickets rather than coordinated pieces of a comprehensive plan. Impulsive investment moves—selling stocks or bonds out of fear about what’s next—can upend your retirement allocation and leave you missing out on future gains. Again, as the article recommends, it’s best to rebalance with purpose, not on market noise.

The story also reminds readers not to leave cash or checks as direct gifts to charities without considering smarter moves—like donating appreciated securities to maximize tax benefits or using qualified charitable distributions from IRAs. And as your personal life changes, the importance of updating beneficiaries can’t be overstated—otherwise, your legacy may not end up where you wanted.

Bottom line:

It’s tempting to try to fix, gift, or clean up everything before the calendar flips to January, but financial success in retirement is less about year-end heroics and more about making a plan, checking it twice, and keeping emotion out of money moves. As I tell clients: first, make sure any year-end gesture fits your financial roadmap—then, double-check the fine print on IRS rules and deadlines before acting. It’s about finishing the year strong, not just fast.