We just wrapped up June and celebrated July 4th. which means we are at the midyear point. This is a crucial time in financial planning. Although most of us are checked-out for summer, now is a key review time given that we are half way through our calendar year. There are several reasons for a midyear review but one key reason is that your adviser would love to hear from you. Everyone is at a different stage in their financial journey, but let’s take a look at a few key reasons to have a midyear review even if there are no changes.
Check on those goals! Did you set a financial goal for the new year? Do you need to revise or adjust your overall long-term goals? If so, now is a great time to review where you are with your goals, and to get back on track if you have lost your way. There is no shame in recommitting to your goal if you have veered off course. Midyear can be a good time to rethink your goals or tweak them so that they make more sense to you now.
Evaluate your monthly spending plan. The word budget for most people is as loaded as the word diet. Unfortunately, both need continual tinkering in our lives. Our diet changes as we age and with major life changes, so should our budget. If you started the year with a budget, check now to see if you are still spending as you should be. If you’ve had a change in income or other life event, midyear is a great time to reassess your spending needs.
How are those investments? Midyear is a perfect time to review your investments. It’s great knowing where we are for fiscal year 2023, but consider looking back even further. Looking back to say, June 30, 2022, may be more realistic for you. Sometimes we get a bit shortsighted when comparing and evaluating our progress. Even though (as of this writing) the Dow Jones Industrial Average is up by about 3.4% for 2023, it’s higher by about 10% compared to this time last year. Your investments likely won’t show this exact gain. They may be higher, or lower, depending on your investment selection and risk tolerance. Regardless, midyear is a great time to check on your investments to make sure you are still on track to meet your goals and still in line with your personal risk tolerance.
Did you have a major life change? If so, this is something to share with your financial planner. One, because we would love to hear from you; and two, because it may mean a broader reassessment of your financial plan. Midyear still provides time to maneuver to make and implement changes to your plan.
Midyear is an opportune time to check on your progress, report new goals or life changes, and to just get back on track. The midyear review should become a healthy financial habit that you cultivate and grow over time. So, reach out to your planner now and schedule some time for your review and update.
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