As summer approaches, you might be thinking about schools letting out, family vacations, and other mid-year activities. Another prudent idea would also be to consider a mid-year checkup with your finances and financial plan. Just as having your annual physical exam can help keep you healthy, a mid-year financial check-up can help maintain financial wellness.
Here are some solid reasons why:
Tax season for most has ended. You now have the latest tax information and five months of the new year under your belt to consider adjustments and strategies to save on 2025 tax liabilities during the second half of the year.
We’ve had a roller-coaster ride in the financial markets so far this year. With further volatility potentially ahead and five months of market activity already passed, is it time to make any tactical moves in your portfolio?
You’re another year older. Are you still on track to meet your financial objectives in the near term and in the future? Do you even have a plan to meet those goals?
Your children are also another year older. How are you prepared for the extra expenses of college or other educational expenses?
What changes have occurred in your life since last year? How might such changes impact your plans or finances for the future?
All of these are instances where reviewing your finances and financial plan can answer these important questions. Here are some steps Win Wealth Solutions recommends to our clients:
Take the Temperature of Your Annual and Long-Term Goals
A good financial plan starts with your objectives: What is important to you, and what do you want to achieve in the near future and further down the road? Life happens, though, so circumstances, resources, and objectives change. New family members are born, parents pass on, marriage, divorce, career moves, and simple shifts in priorities are all valid reasons to revisit how your financial plans might still meet these changes or adjustments might be needed (both annually and in the long run).
This may require a thorough analysis of cash flows, evaluating new expenses or income, reducing or consolidating debt, and considering ways to manage your money more efficiently and effectively. Having enough emergency cash available (without incurring more debt), managing credit card balances, and staying within budgets are all worth close examination.
Exposed? Review Your Risk Management
The tragedy of the Palisades should be the final word on the importance of having proper insurance to cover the unexpected in life. Mic drop.
And yes, property insurance rates are expected to increase significantly. All the more reason to review your insurance coverages to protect your home, auto, and personal treasures, and to evaluate whether adjusting deductibles, coverage amounts, or even switching carriers could be beneficial.
Reviewing your personal insurance is critical as well. You might think that having workplace group life insurance coverage is sufficient, but that could be a huge mistake. Not only does life insurance need to cover immediate expenses after death, but the loss of your income can impact your loved ones’ lives far into the future.
Don’t neglect health insurance or dental coverage either. Depending on your employer plan, adjusting deductibles and copayments could help your cash-flow situation and overall financial plan.
Retirement Savings: Will They Be Enough?
Are you on pace toward your retirement savings goals or falling further behind? Maximizing tax-deductible contributions to your employer retirement plan is one of the best strategies to both accumulate wealth and save on annual tax liability, especially if your employer provides matching and profit-sharing contributions and you can designate those as Roth 401(k) monies.
Speaking of tax-free Roth accounts, even if you are enrolled in an employer retirement plan, you and your spouse can still contribute to a Roth IRA each year (subject to income limitations). Tax-free retirement resources could be golden for retirees in the future.
Keep More of What You Earn
Don’t wait until next tax season or even December to think about tax savings for this year. With over half of the year remaining, now is the time to implement tax strategies to keep more of what you earn.
Along with maximizing deductible retirement account contributions, consider the following strategies:
Look at your tax withholding designations. Are you withholding too much (giving the IRS an interest-free loan) or too little (resulting in a nasty tax surprise in April)? Work with your tax advisor to make adjustments as needed.
Evaluate your taxable investment accounts for efficiency. With the current volatility, your account may be generating excess capital gains (especially short-term gains, which are taxed at a higher rate). Adjust your investments where taxable dividend and income holdings are sheltered in IRA and other tax-deferred accounts.
Work with your tax advisor and wealth manager to see if a Roth IRA conversion could be advantageous. Paying a smaller amount of taxes now could reap tax-free benefits in the future.
If you have a high-deductible health insurance, open and fully fund a health savings account (HSA) and take advantage of triple tax benefits.
Overall, taking the time to review your finances can help to assure good financial health and catch any problems that could metastasize in the future.
Looking for Direction? Get Help From Win Wealth Solutions
Sometimes it’s hard to be objective about personal growth. In those cases, an outside perspective can make a huge difference. That’s where Win Wealth Solutions can lend a hand. When you contact us, we’ll talk about your personal goals and ambitions as thoroughly as we discuss financial matters.
To schedule a meeting, call (949) 413-8387 or email Nguyen@WinWealthSolutions.com.
About Nguyen
Nguyen Tran is founder and financial advisor at Win Wealth Solutions, an independent financial services firm based in Los Angeles, California. Dedicated to assisting clients with their greatest financial concerns, Win Wealth offers comprehensive investment management and financial strategies, coupled with unbiased advice and recommendations. As a first-generation immigrant, Nguyen thrives off hearing clients’ stories, hopes, and dreams, and loves sharing his knowledge to help them find better solutions to their situations. With over 20 years of experience, he has helped clients retire, pay for their kids' college, and build lasting wealth.
Nguyen studied finance and marketing and obtained a BS in Business Administration from Cal Poly Pomona, and he holds the Chartered Retirement Planning Counselor™, CRPC™ designation. He is committed to lifting his team and clients to new heights and giving back to the community through scholarships, donations, and volunteering. Raised in Modesto, Nguyen now resides in Hancock Park, Los Angeles, with his wife and two kids. Outside of work, he enjoys playing sand co-ed flag football in Huntington Beach, hiking, organizing trips, and gardening. To learn more about Nguyen, connect with him on LinkedIn.