5 Tips for Your Midyear Financial Checkup

And just like that, half of the year is nearly behind us. How are your financial goals coming along?

Midyear is a natural checkpoint for many of us to look in on our finances and see what’s going well and which areas may need a little more work.

Not sure how to get started on your midyear review? Here are five tips we want to share.

1. Revisit your money goals

Did you set any goals or financial resolutions at the start of the year? Have they changed? Maybe you’ve even added new ones.

Whatever the case may be, make sure you’ve put together a plan with small, manageable steps to help you reach those goals. And don’t forget to track your progress. This is not only so you can see how much farther you have to go but also how far you’ve come!

Remember: Financial goals, big or small, are rarely achieved overnight, so it’s important to celebrate your small wins along the way. Making note of your progress at the midyear mark can help motivate you to keep going.

If you feel like you’ve fallen off track, don’t be too hard on yourself. After all, life can take unexpected turns, and progress is not always linear. Consider connecting with a financial advisor to discuss what potential course corrections you could make to help steer you back in the right direction.

2. Review your financial plan

If you have a financial advisor, schedule a time to review your financial plan together. This can be especially important during times of economic and market uncertainty.

Consider reviewing your mix of investments to make sure it’s still in line with your goals and tolerance for risk. If any of your preferences have changed, your advisor might suggest certain portfolio adjustments to help ensure the success of your financial plan.

Check up on your retirement savings too. Are you already contributing as much as you can? (Don’t forget about catch-up contributions if you’re age 50 or older.)

Also, be aware that there have been significant changes to US retirement laws given the passage of SECURE Act 2.0 in December 2022 – including rules related to required minimum distributions, Roth treatment of catch-up contributions for certain individuals and more.

It’s a good idea to talk to your advisor to learn about these changes and understand how they may affect your overall financial plan.

3. Reconfirm your tax withholdings

Did you get a big refund or find yourself owing taxes in April?

If you got a big chunk of money back, while exciting, this could mean you’re withholding too much for taxes. On the flip side, if you usually find yourself having to send in a tax payment with your tax return, it could mean you’re not withholding enough.

Either way, consider working with your financial advisor or a tax professional to confirm you’re withholding the proper amount from your paychecks.

While you’re at it, take a moment to evaluate your current tax planning strategy. Are there areas you could fine-tune to help maximize your tax savings down the road? Talk to your financial advisor to ensure your investment portfolio is tax-efficient.

Good to know: If you got a refund from the IRS this year, is it still sitting idle in your checking account? Sometimes, when refunds are electronically deposited to your bank account, it can be easy to forget that the money is there. If that’s the case, think about putting that refund to work in a high-yield savings account or a certificate of deposit account if you don’t need that money for something else right now.

4. Review your insurance coverage and beneficiary designations

If you haven’t already reviewed your insurance needs at the start of the year, now can be a good time to do so.

Regularly reviewing your insurance policies (home, car, life, health, etc.) helps to ensure you have the appropriate amount of protection for you, your family and your assets. Remember, big life changes may require you to update your coverage.

Don’t forget to review the beneficiary designations in your estate plan and financial accounts (e.g., bank, retirement accounts, brokerage accounts, etc.). Is all the information correct and up to date?

5. Monitor your credit 

Because your credit history could impact your ability to borrow, you’ll want to review your credit report regularly to make sure the information on there is accurate and complete. Report any errors as soon as possible.

You can get a free copy of your credit report from each of the three major consumer reporting bureaus – Equifax, Experian and TransUnion – every 12 months by visiting annualcreditreport.com (this is an official site, authorized by the federal government).

You can order all three of your credit reports at the same time. Or you can choose to space out your requests over a 12-month period.

In addition to reviewing your credit report, you’ll also want to check on your latest credit score. If you see a drop in your score, pay attention to how you’re using your credit cards (or other lines of credit). Have you been paying your bills on time? How’s your credit utilization rate?

Good to know: Your credit report won’t include your actual credit score , but there are several ways to get it (some providers may charge a fee).

• Experian, Equifax and TransUnion – the three major national credit bureaus. 
• A credit score provider like FICO. 
• Your bank or credit card company may also be able to provide a score. 

You can visit consumerfinance.gov for more information.