The 2026 Wealth Checklist: 5 Strategic Moves to Make Before the New Year

29 December 2025

Table of Contents

Positioning for a New Economic Era

The 2026 Wealth Checklist: 5 Strategic Moves to Make Before the New Year is your essential roadmap for navigating the critical transition into the next global economic cycle. At The Fund Path, we believe that financial dominance isn’t achieved by chance, but through the deliberate, proactive actions taken before the calendar turns. As 2025 draws to a close, the shift in interest rate policies and emerging market rotations demands a fresh perspective on your portfolio. By executing these five high-impact strategies today, you are not just “saving money” you are strategically allocating capital to ensure that your wealth remains resilient, tax-efficient, and primed for maximum growth in the year ahead.

Success in the markets is rarely the result of a single “lucky” trade; it is the cumulative effect of strategic, repeatable actions taken when the calendar turns. Waiting until January 1st to plan your year is a common mistake. The true “wealth builders” make their moves in the final weeks of December.

This checklist outlines the five critical strategic moves you need to execute right now to ensure your portfolio and personal finances are primed for the unique opportunities of 2026.

1. Portfolio Rebalancing: Aligning with the 2026 Rotation

After a year where tech and AI-driven stocks may have dominated your gains, your portfolio’s asset allocation has likely drifted. If you started the year with a 60/40 stock-to-bond ratio, your stock portion might now represent 70% or more of your wealth due to market growth.

Why it matters now:

In 2026, we expect a broader market rotation. While US “Big Tech” remains strong, Emerging Markets and small-cap stocks are positioned for a breakout due to lower interest rates and attractive valuations.

The Move: Sell a portion of your “winners” (the over-weighted sectors) and reinvest those proceeds into under-weighted areas like international funds or fixed-income assets.
The Path Insight: Rebalancing is a forced mechanism to “buy low and sell high.” It ensures you aren’t over-exposed to a market correction in 2026.

2. Tax-Loss Harvesting: Turning Volatility into a Tax Asset

If some of your speculative investments or specific sectors faced headwinds in 2025, those “red” numbers in your brokerage account can actually be turned into “green” for your tax return.

Strategic Execution:

Tax-loss harvesting involves selling assets at a loss to offset capital gains realized elsewhere in your portfolio.

The Move: Review your taxable brokerage accounts for any positions currently trading below your cost basis. Sell them before December 31st to lock in the loss.
The “Wash-Sale” Warning: To keep the tax benefit, you cannot buy the “substantially identical” asset within 30 days before or after the sale. Instead, consider moving that capital into a similar but different Mutual Fund to maintain your market exposure without violating IRS rules.
Pro Tip: You can use harvested losses to offset up to $3,000 of ordinary income, with any excess losses carried forward into 2026 and beyond.

3. Maximize 2026 Tax-Advantaged Contributions

The turn of the year often brings new contribution limits for retirement accounts. In 2026, staying ahead of these limits is essential for tax-efficient growth.

What’s New for 2026:

Higher Earners Rule: Starting in 2026, if your prior-year wages exceed $145,000, any catch-up contributions to your 401(k) must be made as Roth (after-tax) contributions. This is a significant shift for high earners who previously relied on pre-tax deductions.
The Move: Adjust your automated contributions now. If you have any remaining “headroom” in your 2025 IRA or 401(k), fill it before the year-end deadline.
HSA Optimization: Don’t forget your Health Savings Account (HSA). It remains the only “triple-tax-advantaged” vehicle. If you are on a high-deductible plan, maxing this out is a non-negotiable step for 2026 wealth building.

4. Defensive Cash Management: The “Stress-Free” Buffer

With the global economy moving toward a potential “soft landing,” 2026 may still have pockets of volatility. A pro-investor never wants to be forced to sell assets during a market dip to pay for an emergency.

Revisit the 50/30/20 Rule:

Use the end of the year to audit your cash flow. If your spending has “crept up” during 2025, your emergency fund might no longer cover six months of your actual expenses.

The Move: Replenish your emergency fund to reflect your current 2026 lifestyle costs.
The High-Yield Pivot: As interest rates begin to stabilize or decline in 2026, the era of “easy” 5% returns on idle cash in savings accounts may fade. Consider moving excess cash into short-duration bond funds or money market instruments that can lock in yields before they drop further.

5. Automate the DCA Path for 2026

The most successful investors aren’t the ones who time the market; they are the ones who spend the most time in the market. As you look toward 2026, your greatest weapon is automation.

The Move: Set up or increase your Dollar Cost Averaging (DCA) schedule for the new year. Whether it is $100 or $10,000 a month, automating your investment removes the emotional stress of “is the market too high?”
The Multi-Asset Strategy: In 2026, don’t just DCA into the S&P 500. Diversify your automation to include a mix of US equities, international funds, and perhaps a small allocation to digital assets (using our Crypto Jargon guide to stay informed on the terminology).

Conclusion: New Year, New Discipline

The difference between a “dreamer” and an “investor” is a checklist. By rebalancing your portfolio, harvesting your losses, maximizing your tax-advantaged accounts, securing your cash buffer, and automating your future, you are doing more than just “saving money” you are designing a life of financial freedom.

The economic winds of 2026 will blow for everyone. But by taking these five strategic moves today, you ensure that your sails are set to capture the momentum of the new year.

Your wealth is built in the decisions you make today. Stay on the path.