With the holiday season approaching and 2025 drawing to a close, now is an ideal time to review your investment portfolio and financial plan. Market conditions have been favorable, but prudent investors know that discipline and preparation are essential to long-term success. Below are six investment planning suggestions to position yourself for success in the year ahead.

1. Rebalance your portfolio

Consider rebalancing before year-end to manage risk and keep your investment portfolio aligned with your target asset allocation across stocks, bonds, cash, and private markets.  

The S&P 500 has risen approximately 16.7% in the year to date and has also performed well over the past three months (FactSet, October 24, 2025). The past three years have rewarded investors who have taken on equity exposure, particularly in technology-related stocks, which have outperformed the benchmark. 

While we are not forecasting a recession, it’s always wiser to rebalance during a bull market rather than wait for volatility to force the adjustment. 

2. Review capital gains distributions

Check for capital gains distributions from any mutual funds, ETFs, or private market funds to manage your year-end tax exposure. Many pooled investment vehicles distribute realized gains in November and December, as they are required to pass along any taxable activity to investors. 

Be sure to account for these potential distributions when planning for 2025. At Cerity Partners, we maintain a list of approved funds and their expected distributions to assist clients with effective tax planning. 

3. Evaluate concentrated positions

This year, the market’s performance has been driven by a relatively small group of dominant names. While these positions may have created substantial wealth, they may also introduce higher volatility and concentration risk. 

Our goal is to help preserve, protect, and grow your wealth. There are investment solutions, including tax-aware long-short equity strategies for separately managed accounts, that can help diversify concentrated positions while managing tax implications. We encourage clients with large positions in high-performing stocks, like Nvidia, Palantir, Tesla, Apple, and Microsoft, to work with their investment advisor and consider our approved strategies designed to help ensure portfolios remain appropriately balanced and aligned with their individual risk tolerance and investment objectives.

4. Strengthen diversification

Diversification remains a timeless principle of investing. This year’s prevailing theme, sometimes referred to as the “debasement trade,” has benefited many traditional asset classes. However, it’s important to look beyond the current trend. As both stocks and bonds have performed well in 2025, now may be an opportune time to explore diversifying into private markets to identify alternative sources of income and long-term capital appreciation within portfolios.  

Strategies such as private real estate and infrastructure investing can complement fixed-income allocations, serving as alternative sources of yield while potentially providing inflation protection and tax advantages. Other strategies, such as private equity and venture investing, can complement public stock allocations by providing exposure to companies driving innovation across sectors like technology and healthcare—potentially enhancing the long-term capital appreciation of portfolios.

5. Focus on long-term trends, not short-term noise

While markets can fluctuate in the short term, investors should stay focused on structural, long-term opportunities. We believe artificial intelligence (AI) will have a lasting impact on the global economy and recently wrote about its potential to shape markets. Although there may be skepticism, AI can transform how we consume information, perform daily tasks, and work. Companies across all stages of development in this space are poised to be significant contributors to long-term portfolio returns.

6. Prepare for what’s next

As the year closes, analysts and commentators will publish their forecasts and market predictions for 2026. Rather than focus on price targets, we encourage clients to consider the planning opportunities emerging from recent policy changes. 

One key development to monitor next year is the extension of the Qualified Opportunity Zone program, which was made permanent by the One Big Beautiful Bill Act (OBBBA) and has made the tax benefits available to investors on a rolling basis. For clients with significant capital gains, this policy update may present meaningful opportunities for tax-efficient investing and long-term planning. 

For founders of small businesses and shareholders, the Qualified Small Business Stock eligibility has also been expanded by the OBBBA. Reduced requirements, such as shorter holding periods and larger company sizes, have added more flexibility for investors to plan for potential liquidity events.

How our investment advisors can help

The end of the year offers an excellent opportunity to reassess your financial position and ensure your portfolio reflects your goals and the evolving market and economic landscape. At Cerity Partners, our mission is to help clients make informed decisions that protect and grow their wealth across generations. If you would like to review your portfolio or financial plan before year-end, reach out to your Cerity Partners advisor or request an introduction today.

Please read important disclosures here.