We’re halfway through the year, making June the perfect time for a mid-year financial checkup. Pure’s Senior Financial Advisor, Allison Alley, CFP®, AIF®, shares six key steps to help you stay on track with your financial goals. Taking a moment to reassess now can help you make meaningful progress in the future.
She discusses:
- Budgeting
- Emergency fund
- Tax planning
- And more
Transcript
Well, we’re already about halfway through the year, so now is the perfect time for a midyear financial checkup. Whether you’re working toward paying off debt, saving for a big goal, planning for retirement, or just trying to stay on top of your money, this quick review can make sure you’re headed in the right direction.
Step 1: Evaluate Your Budget
Start by taking a fresh look at your budget. Has your income changed? Are your expenses higher in certain categories than expected—like groceries, utilities, or subscriptions?
Use a budgeting tool or an app to see where your money is going. Identify areas where you can cut back and reallocate funds toward your goals. This can be a great time to automate savings if you haven’t already.
Step 2: Check Emergency Fund & Debt
Evaluate your emergency fund. Ideally, it should cover 3 to 6 months of essential expenses. If you’ve dipped into it, create a plan to rebuild it.
Also, look at your debt. Are you making progress on paying it down? Can you increase your payments or consider refinancing to a lower interest rate? This is also a great time to do a credit check. Look for signs of identity theft or anything that seems amiss by visiting annualcreditreport.com and downloading your free credit reports.
You can also look for opportunities to improve your scores by taking steps like reducing your credit utilization ratio or adding bill payment tracking through the Experian Boost program.
Step 3: Review your short- and long-term goals by revisiting the financial goals you set at the beginning of the year.
Are you on track to meet them? Have any goals changed based on new life circumstances like a job change, new baby, or major purchase? If you didn’t set specific goals, now’s a great time to outline a few clear, achievable ones for the rest of the year. Maybe that’s increasing your savings toward your emergency fund that we just talked about.
This is also a great time to check in on those longer-term goals. Are you still on track to meet your target retirement date? This brings us to Step 4.
Step 4: Review Investments & Retirement Accounts
If you’re investing, whether it’s in a 401(k), IRA, or brokerage account, check your portfolio performance. Are you contributing regularly? Can you increase your contributions?
If you’re over 50, are you taking advantage of the catch-up provisions and max fund your 401k and your Roth? Are your investments still aligned with your risk tolerance, goals, and time horizon? Markets may fluctuate, but consistency is key. If you haven’t done a portfolio review in a while, midyear is a great time. Consider talking to your financial advisor if you’re unsure.
Step 5: Midyear Tax Planning
Don’t wait until December to think about taxes. Take time now to:
Review your withholdings using the IRS estimator. You may want to consider increasing your retirement contributions to reduce taxable income. Or does a Roth conversion make sense? Look into charitable donations, flexible spending accounts, or health savings accounts to maximize deductions. A proactive approach can reduce surprises and help you take full advantage of tax-saving opportunities.
Step 6: Update your Estate Plan
Estate planning isn’t just for the wealthy, it’s for anyone who wants to protect their family and assets.
Midyear is a good time to: Review or create a will and power of attorney. Make sure your beneficiary designations are up to date on retirement accounts and life insurance. Consider whether a trust might be appropriate for your situation. Updating your estate documents now can provide peace of mind for you and your loved ones.
A midyear checkup doesn’t have to be overwhelming. With a little time and focus, you can adjust your course and finish the year strong. Stay mindful, stay intentional and your financial goals will be that much closer. If you would like to see if you’re on track to reach you retirement goals, contact Pure for a free financial assessment.
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IMPORTANT DISCLOSURES:
• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.
• Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations.
• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
CFP® – The CERTIFIED FINANCIAL PLANNER® certification is by the CFP Board of Standards, Inc. To attain the right to use the CFP® mark, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. 30 hours of continuing education is required every 2 years to maintain the certification.
AIF® – Accredited Investment Fiduciary designation is administered by the Center for Fiduciary Studies fi360. To receive the AIF Designation, an individual must meet prerequisite criteria, complete a training program, and pass a comprehensive examination. Six hours of continuing education is required annually to maintain the designation.
