As we enter the ultimate quarter of 2025, high-net-worth people face a well-recognized problem: how one can optimize wealth in an unpredictable financial surroundings. Between shifting tax legal guidelines, rate of interest uncertainty and a looming midterm election in 2026, year-end planning calls for a disciplined, forward-looking strategy.
Jeffrey Fratarcangeli, CEO and founding father of Fratarcangeli Wealth Administration, oversees $4 billion in property throughout 700+ households and companies. He emphasizes that the ultimate months of the 12 months will not be a time for last-minute scrambles, however for deliberate, methodical motion.
“Should you wait till January 1, it’s too late,” Fratarcangeli says. “Deadlines can’t be reversed. The work should be executed earlier than the 12 months closes, and now’s the time to begin.”
Tax Planning Comes First
Tax concerns stay central for rich people and companies. Features realized all year long, whether or not from investments or enterprise transactions, can result in heavy liabilities if not managed correctly.
“One of many first issues we have a look at is how one can offset features with losses,” Fratarcangeli explains. “Past that, we consider what might be anticipated within the 12 months forward so our shoppers are positioned correctly going into January.”
Charitable giving additionally performs a task. Donor-advised funds permit philanthropically minded shoppers to safe deductions now whereas directing contributions later. Companies, in the meantime, are appearing on incentives similar to 100% depreciation on capital expenditures, which was signed into regulation earlier this 12 months.
“Corporations are shifting up spending on equipment, expertise and stock,” Fratarcangeli says. “That reduces this 12 months’s tax invoice and lowers quarterly funds within the 12 months forward. For some shoppers, it might imply a 30 to 40% distinction in what they owe.”
Put together for Volatility, However Keep the Course
Election years sometimes carry heightened uncertainty, and 2026 shall be no exception. Fratarcangeli notes that slim margins in Congress enhance the chance of political gridlock or volatility that will spill over into markets.
“We all know volatility is coming. That’s the reason we give attention to having the liquidity to greenback value common. Whether or not from revenue or money raised, it permits our shoppers to profit from market swings.”
The answer, he says, isn’t overreaction however preparation.
“We aren’t making an attempt to catch a falling knife or chase a inventory that’s operating up. The hot button is self-discipline, each in how we function and the way we information our shoppers. That steadfast positioning and long-term consistency will repay.”
Think about Curiosity Fee Shifts
Rates of interest stay a key consideration because the Federal Reserve has signaled further charge reductions within the months forward. Whereas decrease charges can create borrowing alternatives, in addition they have an effect on how people and companies handle short-term money.
“Companies and people alike ought to take into consideration how one can defend curiosity earnings if charges proceed to maneuver down,” Fratarcangeli says. “Locking in a three- or six-month Treasury could possibly be a sensible method to protect short-term yields. Not like cash market charges, which modify downward nearly instantly, Treasuries will let you lock in earnings in the course of the time period.”
These selections, he provides, must be made earlier than year-end.
“You do not need to overlook alternatives by ready.”
The Backside Line: Strategic Planning Trumps Reactionary Pondering
Fratarcangeli underscores that the top of the 12 months is about preparation, not response.
“We put together and foreshadow forward of time. Tax planning, market positioning, liquidity and rates of interest are all interconnected. In case you are methodical, you may be prepared for any alternatives or volatility that lie forward.”
For extra perception from Jeffrey Fratarcangeli, watch his newest market replace.
