| Greetings!
With just 23 days left in the year, this is a natural moment to pause, reflect, and make a few wise, intentional moves that can shape both the close of 2025—and the years ahead. This week’s edition of Advice for the Good Life is built for exactly that kind of moment.
In Wealth Advisory, we walk through three important tax planning opportunities before December 31st—Required Minimum Distributions, strategic Roth conversions, and tax-loss harvesting. These are practical, timely decisions that can meaningfully impact both your current tax bill and your long-term financial flexibility.
In our Wellness Navigator section, Christine Despres offers a science-backed gift for the holiday season: how gratitude reshapes the brain, lowers stress, and restores calm in the middle of December’s natural intensity. It’s a simple daily practice with powerful neurological and emotional benefits.
And in Etcetera, we close with a true story that begins with donuts in Bozeman and ends with a reminder about quiet generosity, leadership, and the kind of giving that multiplies far beyond the moment.
Let’s finish the year well.
Wealth Advisory: Three Tax Planning Opportunities Before December 31st
The conclusion of 2025 presents investors with critical opportunities to optimize their tax positions and strengthen their long-term financial strategies. Although effective financial planning extends throughout the entire year, numerous tax-related deadlines coincide with December 31. This makes the year’s closing weeks an ideal time for investors to assess their tax approaches and complete any actions that may influence their 2025 tax obligations.
This article examines three key strategies that warrant investor attention: handling retirement account withdrawals, executing Roth conversions, and structuring portfolios for optimal tax efficiency. Given the complexity of these topics and the varied regulations affecting different individuals, consulting with qualified professionals remains essential.
December 31 deadline applies for Required Minimum Distributions.
While investors typically concentrate on accumulating wealth and expanding their portfolios throughout their careers, the manner in which they withdraw from their accumulated assets holds equal significance. This becomes particularly critical for those who have reached the age triggering Required Minimum Distributions (RMDs). The December 31 deadline stands as one of the most crucial dates on the calendar, as failure to comply can lead to substantial IRS penalties—currently set at 25% of the undistributed amount.
RMDs represent the minimum withdrawal amounts mandated annually from traditional IRAs, 401(k)s, and similar tax-deferred retirement vehicles once individuals attain a specified age. The SECURE 2.0 Act, enacted by Congress in 2022, elevated the RMD age to 73 for individuals who reached 72 after December 31, 2022. This threshold will advance to 75 beginning in 2033.
The accompanying chart illustrates current distribution periods measured in years, along with corresponding mandatory withdrawal percentages applicable to most account holders. Withdrawal amounts derive from the account’s December 31 balance of the previous year, modified by an IRS-published life expectancy factor. While these calculations follow relatively simple formulas, the planning implications can prove considerably more intricate:
- Account selection: Thoughtful coordination is essential when determining which accounts to tap first, the timing of withdrawals during the year, and how to align RMDs with additional income streams. The sequence of account withdrawals can significantly impact total tax liability, particularly since Social Security benefits become taxable at specific income thresholds and may trigger increased taxation.
- First-year delay: An exception exists for individuals in their initial RMD year, permitting them to postpone distributions until the following year’s April 1. However, this approach necessitates taking two RMDs in the subsequent year, potentially elevating the investor into a higher tax bracket.
- Other distribution strategies: Alternative approaches include Qualified Charitable Distributions (QCDs), which enable investors to contribute directly from their IRA to eligible charities. This satisfies the RMD obligation while excluding the amount from taxable income. Nevertheless, timing considerations surrounding these choices demand meticulous planning.
A significant consideration during the years preceding age 73 involves whether to initiate distributions before RMDs commence. Certain investors may find it advantageous to withdraw sufficient amounts to “fill a tax bracket” (maximizing income while remaining below the next bracket threshold). This approach proves especially valuable for those anticipating higher tax brackets once RMDs become mandatory.
These elements underscore why retirement planning necessitates a multi-year outlook rather than concentrating exclusively on individual tax years.
Current conditions create strategic advantages for Roth conversions.
Roth conversions represent another potent year-end planning instrument subject to the December 31 deadline. Similar to RMDs, they demand thorough analysis and strategic planning. A Roth conversion entails moving assets from a traditional IRA to a Roth IRA, generating an immediate taxable event while securing tax-free growth and future distributions.
In contrast to Roth contributions, which impose income restrictions, conversions remain accessible to all investors irrespective of earnings level. For those whose income levels preclude direct Roth IRA contributions, these transactions are commonly termed “backdoor” Roth conversions.
The “One Big Beautiful Bill” enacted by Congress earlier this year established permanence for the reduced tax rates introduced under the Tax Cuts and Jobs Act. For numerous investors, present tax rates may prove more advantageous relative to potential future scenarios. Given the expanding national debt and ongoing fiscal deficit, some investors harbor concerns that tax rates could increase down the road.
Critical factors influencing Roth conversion determinations include:
- Tax bracket comparison: Investors should evaluate their current tax bracket against projected retirement-year brackets. If expectations point toward a higher future tax bracket—potentially driven by RMDs, pension income, or Social Security benefits—paying taxes immediately on Roth conversions at current lower rates can prove advantageous.
- Time horizon for tax-free growth: Extended periods of tax-free accumulation within the Roth account enhance conversion value. Consequently, earlier conversions typically yield superior results.
- Medicare premiums: Elevated income resulting from Roth conversions may activate Income-Related Monthly Adjustment Amounts (IRMAA), raising Medicare Part B and Part D premium costs. While this doesn’t automatically preclude conversions, it represents an additional consideration in comprehensive planning.
Strategic losses can reduce tax obligations and counterbalance gains.
While RMDs and Roth conversions address retirement accounts, tax-loss harvesting applies to taxable investment portfolios and can enhance current-year tax outcomes. This technique involves liquidating depreciated investments to recognize capital losses, which subsequently offset capital gains realized throughout the year. This activity must also occur before December 31 to affect the current tax year, making it a vital component of comprehensive investment and financial planning.
How does this function practically? When an investor has sold investments during 2025 and recognized capital gains, they can harvest losses from alternative holdings to neutralize those gains on a dollar-for-dollar basis. Tax loss harvesting maintains value even during years without substantial realized gains. When losses surpass gains, investors can apply up to $3,000 of net capital losses against ordinary income each year, carrying forward any remaining losses to subsequent years.
Multiple considerations influence tax-loss harvesting effectiveness:
- Capital gains rates: Long-term capital gains (derived from investments held beyond one year) receive preferential taxation at 0%, 15%, or 20% based on income level, whereas short-term gains face ordinary income tax rates. Harvesting losses to counterbalance short-term gains can deliver particular value since those gains would otherwise incur higher taxation. This advantage may amplify for residents of high-tax states.
- Wash sale rule: An important constraint involves the “wash sale” rule, which prevents repurchasing identical or “substantially identical” securities within 30 days preceding or following the sale. This regulation prevents investors from claiming tax losses while preserving identical investment positions. Investors can, however, substitute comparable investments such as ETFs, preserving market participation and desired asset allocation while still capturing the tax loss.
- Account considerations: Tax-loss harvesting exclusively applies to taxable brokerage accounts, not IRAs or 401(k)s where transactions don’t generate taxable events. This distinction exists because retirement accounts accumulate value tax-deferred independent of internal trading activity.
Effective implementation demands thoughtful coordination.
The true value of year-end financial planning emerges not merely from executing individual tactics, but from orchestrating them strategically to optimize overall benefits. Naturally, maintaining perspective on overarching objectives remains crucial. While minimizing current-year tax liability delivers value, it shouldn’t compromise broader financial aspirations. Optimal planning weighs both immediate tax consequences and long-term wealth building, ensuring present decisions advance future goals.
The bottom line? Numerous investors can benefit from timely actions completed before year-end. The present moment offers an excellent opportunity to evaluate your tax position and financial circumstances.
Wellness Navigator and Holistic Health Guide: , Christine Despres, RN, NBC-HWC, CDP
A More Peaceful Holiday Starts in Your Mind
Inspired by the work of Dr. Daniel Amen
December is a month filled with beauty, celebration, reflection — and often stress. Your brain feels every bit of it. The busier the season becomes, the more your mind craves calm, clarity, and direction.
That’s why this is the perfect time to anchor into a simple, science-backed gratitude ritual. And as I move through Dr. Amen’s Elite Brain Health Coaching Course, I am more convinced than ever: when you fall in love with caring for your brain, everything in your life gets better.
Why Gratitude Is a Brain-Boosting Power Tool
- Lowers cortisol (your stress hormone)
When you practice gratitude, your brain shifts out of “threat mode.” This calms your brain’s alarm system—and signals your body to produce less cortisol.
Lower cortisol = less tension, fewer racing thoughts, better sleep, and a steadier mood.
- Boosts serotonin & dopamine (your feel-good neurotransmitters)
Gratitude activates the same reward pathways that light up when something wonderful happens.This is why even a 30-second gratitude moment can create a noticeable emotional lift.
- Serotonin supports mood, emotional stability, and a sense of well-being.
- Dopamine boosts motivation, focus, and energy.
The Holiday Gratitude Shift
December can activate pressure, comparison, and emotional overload. Gratitude has the opposite brain effect:
- It softens your stress response
- It refocuses your brain on what’s going well
- It improves connection and compassion
- It helps you feel more present, more peaceful, and more grounded
The more I learn in my training with Dr. Amen, the more I understand how these small daily habits create real structural brain changes. What you do every day matters to your brain, so let’s do more of what it loves. This isn’t fluff — it’s neuroscience.
I am enlightened, energized, and gathering even more science-backed data that continues to reinforce a powerful truth:
A healthy brain is the foundation for a fulfilling life. When you fall in love with caring for your brain, and your health, happiness, and clarity will naturally expand.
This holiday season, let’s make intentional gratitude a priority. It only takes a few minutes to shift perspective and see your day from a brighter angle. Your brain will be so grateful!
Happy Holidays to You and Yours!
With gratitude,
Christine
Your Wellness Navigator
P.S. Here is the link to Gratitude Ritual (PDF)
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The following is a post from my happy, healthy, wealthy, wise community on the Skool Platform. Enjoy!
millionaireME Minute: The Spirit of Giving Personified
Greetings, friends—
Let me tell you a story.
Late last summer, my brother-in-law and I were taking a friend fishing. Naturally, that meant a mandatory stop at Lone Peak Provisions for the best donuts in Bozeman. But when we got to the counter, the register was down. No cash, no card, no donuts.
Before we could even shrug, a voice behind us said: “No worries. I’ve got you covered.”
The man’s name? Peter Billion.
Yes—that Billion, from Billion Auto Group in Bozeman.
He didn’t just buy our donuts.
He bought the next guy’s, too.
Just so the shop wouldn’t lose the sale and everyone could walk out smiling. 😊
I promised I’d pay him back someday.
Then life went on—fishing trips, work, errands, the usual swirl.
Fast-forward to today.
A friend invited me to lunch and wouldn’t let me pay, leaving me with a crisp twenty in my pocket. And as I’m driving through Bozeman, I pass—of all places—Billion Auto Group.
So I pulled in.
I met a salesman named Lyle, told him the donut story, and asked if he could pass along the $20 to Peter.
Lyle laughed.
“He won’t take it,” he said. “That’s not who Peter is.”
Then he lifted his pant leg.
Titanium prosthesis.
He told me how he’d broken his leg skiing in Jackson Hole, developed sepsis, endured multiple surgeries, and eventually had to amputate below the knee.
Turns out, the injury, secondary infection, and operations to treat them put Lyle out of work for three years.
And every time he woke up from surgery, Peter and his father were in the room.
Every time, the first ones to make sure he was okay and to wish him well.
And you guessed it…Peter kept him on payroll the entire time, and never pushed or hurried Lyle to get back to the sales desk.
Then Lyle told me about another employee—struggling with alcohol. Peter bought two plane tickets, sent the man and his wife to Mayo Clinic, slipped him $1,000 for expenses, and said: “Don’t come back Monday. Get on that plane and get well. I’ll see you when you’re ready.”
Before I left, Lyle said the team was taking up a collection—not for Peter, but because of Peter.
His birthday request this year?
To help 13 residents in assisted living get the Christmas gifts they need.
So I gave Lyle the $20 and said, “Put it toward that. When you give to a giver, it multiplies.”
Moral of the story:
There are good people out there.
Givers. Helpers. Quiet heroes.
Find them. Support them. Learn from them.
And when you can—be one.
That’s all for today.
Thanks for reading,
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