Reviewing Your Financial Plan at Mid-Year

Method - Open Graphs (9)
Method - Open Graphs (9)

Many of us wait until the end of the year to start looking at our finances as we prepare for the upcoming tax season. It’s a time when we review our portfolios, make sure we hit our budgeting goals, and that our savings and investing are on track for future plans. In addition, we often wait until the end of the year to focus on retirement plans and other tax-advantaged accounts that help us save on taxes and prepare for future retirement. Instead of waiting until December for a once-a-year check-up, it’s insightful and beneficial to take a periodic look at your financial plan and compare it to where you are now. Mid-year is the perfect time to course-correct to ensure that you are on the path to meet your yearly goals. Here are four key things to look at during a mid-year review.


In our recent blog, “How a Budget Keeps You on Track,” we discussed how a budget can help you balance wants and needs, work towards long-term goals, and prevent overspending. Mid-year is a great time to see how you are keeping your spending, saving, and investing within your financial plan’s guidelines. Are there areas that need improvement? Your budget is a fundamental part of your financial plan. It’s like a map; you may drift off-course unless you check your position regularly.

Asset Allocation

As we all know, the financial markets are constantly in motion. If you have a financial plan, you most likely have a portfolio with a mix of equity, fixed income, and other investments. Because financial markets are constantly moving and asset values change, it’s a good idea to regularly review your investments to ensure they align with your plan to meet our financial goals. As markets move, percentages of assets in specific categories may change, and rebalancing your investments may be necessary. While a certain amount of variance is likely to happen, you should work with your financial advisor to ensure that your investments reflect the plan you and your advisor have designed.

Retirement Planning

Government regulations allow employees to adjust their 401(k) contributions at least quarterly, but many companies permit changes at any time. As a reminder, it’s a great idea to make sure that you’re contributing at least enough to take advantage of the matching that your employer offers inside of employer-sponsored plans that are available to you. It’s important to keep up with annual deposits to your retirement accounts and follow IRS rules which can change from year to year. Your financial advisor can provide information on personal retirement accounts and what assets are most appropriate for those accounts. Remember, asset allocation within these accounts should also be reviewed!

Emergency Preparedness Check

One of the biggest challenges for staying on course with your financial plan is the impact of unexpected expenses. We generally recommend keeping 3-6 months’ worth of expenses in an emergency fund that can be used to handle things like car or home repair, unplanned healthcare costs, and similar unforeseen expenses. These circumstances can lead to serious financial turmoil but an emergency fund can help ensure you don’t dip into other funds saved for long-term goals. Checking your emergency fund can help you adjust contributions to ensure you are covered when life throws you a curve ball.

Final Thoughts

Think of a mid-year check-up as a way to stay on the course you have set in your financial roadmap. Remember, regular reviews can help you focus on your financial goals and prevent you from veering off course.

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