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As we move into the second half of the year and calendars start to fill with summer plans, back-to-school preparations and busy schedules, it’s tempting to push financial housekeeping to the back burner. But getting ahead on a few key financial moves now can pay off in a big way—not only because starting early helps you stay ahead of the curve, but also because many valuable tax breaks and planning opportunities come with a firm year-end deadline.

Let’s look at six steps you can take in the coming few months to help maximize your savings and keep you on track to achieving your long-term financial goals.

Rebalancing Your Portfolio

It can be easy to put off rebalancing your investment portfolio—especially when it means doing something that feels counterintuitive, like selling investments that have performed well and buying those that haven’t. But it’s a fact that over time, market fluctuations can cause your investment mix to drift from your intended allocation.

Market moves could, for example, leave your portfolio disproportionately weighted toward stocks and light on bonds, increasing your risk. Rebalancing resets your investment mix at your original target allocations. This realigns your portfolio with your desired risk profile and ensures that your investment strategy remains in sync with your goals and time horizon. 

Review Retirement Contributions

Reviewing your retirement contributions involves checking how much you’re saving in accounts like 401(k)s or IRAs, and adjusting as needed. This review is important because many people set up automatic contributions and then forget to revisit them, missing opportunities to increase savings as IRS contribution limits change.

What’s more, over time your financial situation and goals are likely to change: Your income may rise, you may welcome new family members or you may be approaching retirement. Adjusting your contributions ensures you’re maximizing tax-advantaged savings and taking full advantage of employer matches.

If you have a traditional IRA, ask your financial advisor if converting to a Roth IRA makes sense in light of your situation and goals.

Tackle Tax Planning 

Year-end is a critical time for tax planning: The right strategies can help lower your tax obligations for this year and for the future, allowing you to keep more of what you earn. Remember that missing key deadlines can result in penalties. Good practices include:

• Taking required minimum distributions (RMDs) from retirement accounts to avoid penalties. (You’re generally required to start making annual withdrawals from traditional workplace plans and IRAs at age 73.¹⁾
• Using tax-loss harvesting—recognizing losses in part of your portfolio can help offset capital gains realized elsewhere.
• Maximizing contributions to tax-advantaged accounts like IRAs and health savings accounts (HSAs).
• Potentially making charitable donations or tax-free gifts to family members (within IRS limits). 

Revisit Financial Goals

Wealth planning isn’t a one-and-done process. Your plan should be reviewed regularly and updated as needed to reflect changes in your life or your priorities. Reassessing your goals allows you to make sure that your investment strategy, savings rate and risk tolerance are appropriate.

Being proactive and correcting course (however minor) can increase the likelihood that you’ll reach both your short- and long-term financial milestones.

Plan for Large Expenses

It’s a good idea to periodically check in on any significant upcoming expenses, such as buying a home, paying for college or funding a major vacation, so you can fund them without throwing off your long-term financial goals.

By proactively budgeting and saving for these costs, you can reduce financial stress, avoid unnecessary debt and make confident decisions about spending and saving.

Estate Planning Refresh

The stakes can be quite high with estate plans: If your documents aren’t up to date when you pass away, it could lead to family disputes, costly legal complications or assets being distributed in ways that don’t reflect your intentions. It’s essential to make sure your will, trusts, beneficiary designations and powers of attorney reflect your current wishes and circumstances.

Keeping your estate plan current can help ensure your loved ones and your legacy are protected. Regular updates may also allow you to take advantage of changes in tax laws or estate planning strategies that could benefit your heirs.

We’re Here to Help

By tackling these six smart money moves before year-end, you can strengthen your financial foundation, minimize risks and position yourself for long-term success. Your wealth advisor can help make the process straightforward and tailored to your goals—so don’t hesitate to get the conversation started. 

Sources:

¹“Retirement plan and IRA required minimum distributions FAQs”

This material is provided for informational and educational purposes only. It does not consider any individual or personal financial, legal, or tax circumstances. As such, the information contained herein is not intended and should not be construed as individualized advice or recommendation of any kind. Where specific advice is necessary or appropriate, individuals should contact their professional tax, legal, and investment advisors or other professionals regarding their circumstances and needs.

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