Q: It feels as though life has been moving fast, and now we’re already halfway through the year! Is there anything I should be doing to make sure my finances are still on the right track?
A: Summer is a great time for a financial tune-up. Whether you’re managing your own retirement, juggling family responsibilities, or somewhere in between, the summertime can be the perfect season to review your financial situation and make small updates that may help prevent bigger headaches down the road.
Start by reviewing your beneficiaries. When is the last time you checked the beneficiaries on your retirement accounts, life insurance policies, and even your bank accounts? Many people don’t realize that beneficiary designations override your will. It’s important to be sure they reflect your current wishes. Life events — such as marriage, divorce, births, or a death in the family — are all reasons to take another look.
Next, review your insurance policies. Have you recently purchased jewelry, artwork, or collectibles that might need to be listed separately on your homeowner’s policy? These high-value items are typically only covered up to a limited dollar amount unless specifically scheduled. Similarly, if you have added a pool, trampoline, fire pit, boat, watercraft, or other outdoor structures, let your insurance agent know so they can ensure your policy provides the proper protection.
Umbrella liability insurance may be especially important if you have teenagers or college-aged children who drive or if your home is the go-to spot for summer pool parties — especially when you are out of town. Planning to rent out your beach or mountain house for extra income? An umbrella policy can help cover unexpected risks in these scenarios.
Market fluctuations may have shifted your investment portfolio out of alignment with your intended allocation strategy. Now may be a smart time to rebalance, reassess your goals, and evaluate your risk tolerance. Selling investments that have outperformed gives you a chance to lock in gains and reallocate into underweighted positions — buy low, sell high!
Summer often brings more travel and leisure, which can lead to higher spending and increased credit card balances. It’s OK to splurge occasionally — just make sure you stay on track afterwards. Compare your year-to-date expenses against your budget and adjust as needed. Don’t lose sight of your savings goals if you go over for a month or two. Revisit your emergency fund (typically three to six months of expenses) to ensure it’s still adequate and readily available.
Mid-year is a great time to review your pay stub and assess year-to-date contributions to your retirement accounts. Adjust your deferral rates now if you want to maximize your contributions for 2025. For 401(k) or 403(b) plans, the limit is $23,000 ($30,500 if you’re 50 or older). For Roth or Traditional IRAs, the limit is $7,000 ($8,000 if 50+).
Let’s not forget about end-of-year tax planning! Summer is also a great time to project your taxable income and evaluate potential tax-saving strategies. Consider Roth conversions or charitable giving. If you are over 70-and-a-half, making Qualified Charitable Distributions (QCDs) from your IRA directly to your favorite 501(c)(3) organization can be a highly tax-efficient way to give.
As my mother used to say, “Once the Fourth of July comes, summer is almost over!” Take advantage of this season to tune up your finances. A little time spent now can make a meaningful difference later. If you’re unsure where to start, consider meeting with a financial adviser or tax professional to help guide you.
Dottie Bourlier, CFP, is a financial planner at Focus Partners Wealth in Indian Harbour Beach. Contact her at 321-428-4555 or dottie.bourlier@focuspartners.com
Numerous representatives of Focus Partners may provide investment philosophies, strategies, or market opinions that vary. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Services are offered through Focus Partners Wealth, LLC (“Focus Partners”), an SEC registered investment adviser with offices throughout the country. Registration with the SEC does not imply a certain level of skill or training and does not imply that the SEC has endorsed or approved the qualifications of Focus Partners or its representatives. RO-25-4523662
This article originally appeared on Florida Today: Business Q&A: Summer’s a good time to assess your financial health. What shape are you in?
Reporting by Dottie Bourlier / Florida Today
USA TODAY Network via Reuters Connect
