Midyear Financial Checkup


It’s hard to believe that we are already halfway through the year. With that being said, now is the time for a semi-annual financial checkup, as a lot may have changed since January 1st. Below are a list of 4 actions you should consider.

#1 Review your Financial Goals

If you are dissatisfied with the current progression of your financial goals, now is the time to change it. Review what your financial goals are and when you want those goals to happen by. Determine how far away you are from obtaining a goal and make changes in order to hit your goals. Some people are saving up for a house, college, paying off credit card debt, or establishing a budget. Whatever your financial goals are, big or small, continue to track it so you don’t fall behind.

#2 Review your Employee Benefits

Depending on what your employer offers and what you have obtained on your own, check to see how much you are contributing to HSA’s, IRA’s or 401k’s. Depending on your tax status you could reduce your 2019 tax liability significantly by increasing your contributions to HSA’s and retirement plans. As you obtain salary increases at work, or things change at home, it may be worthwhile to increase what you are currently contributing to your various accounts.

#3 Review your Investments

You may have a representative taking care of your investments for you; however, you should check in at least twice a year, if not quarterly to make sure they are choosing quality investments and they have properly matched your investments to your risk tolerance and investment horizon. You should always know where your investments stand and although the stock market goes up and down, ask your representative why they are doing or not doing certain things.

#4 Review What’s Important to you

Life insurance is critical to have in case something would ever happen to you. Although money can’t replace you, ensuring that your loved ones don’t also suffer a financial catastrophe during this stressful time, is extremely critical. You should also review beneficiaries annually to make sure you have the correct people receiving your benefits if something were to happen. It would be extremely devastating if you were divorced and remarried but forgot to change your beneficiaries to your current partner.

Next Steps

After reviewing these 4 major items reach out to your tax adviser or financial planner if you want to make some changes. If you have had a major life event occur in your family, such as a death, divorce, birth of a child, retirement, new home, new job, or new business, make an appointment to see your tax adviser. Or if you don’t have an adviser or you’re not satisfied with your current one, give CFO 4 Your Biz a call. It’s better to address major changes or concerns now, instead of in the peak of the tax season, after year end, when it is difficult to make a lot of changes.