It's hard to believe we're already halfway through the year.
Mid-year is a natural time to pause, reflect on what's happened over the past six months, and make sure your financial plan still aligns with where you're headed. While headlines often focus on what's happening today, successful financial planning is built on keeping your long-term goals in sight.
A Look Back at the Markets
The first half of the year brought its share of economic uncertainty. After a rocky start, the stock market staged a strong comeback during the second quarter, reminding investors that markets can recover just as quickly as they decline.
Interest rates also remained a major topic of conversation. In June, the Federal Reserve chose to leave rates unchanged for the fourth consecutive meeting as it continues to evaluate economic conditions.
Inflation has continued to run higher than many would like, with energy prices—particularly gasoline—driving much of the recent increase. While overall inflation remains elevated, the monthly increase in core inflation slowed slightly in May, offering some indication that price pressures are not accelerating across every area of the economy.
While these developments are important to monitor, they don't necessarily require changes to a well-designed financial plan.
Staying Focused on the Long Term
Market volatility is never comfortable, but it is a normal part of investing.
History has shown that reacting to short-term headlines can often be more harmful than helpful. Markets have experienced periods of uncertainty before, and long-term investors have generally benefited from remaining disciplined and focused on their goals rather than attempting to predict short-term movements.
A financial plan is designed to help guide decisions through changing market environments—not just when conditions are favorable.
Mid-Year Planning Opportunities
The second half of the year presents several opportunities to review your financial strategy before year-end. Consider discussing the following with your financial advisor:
Review Required Minimum Distributions (RMDs)
If you're required to take an RMD this year, planning ahead may help avoid a last-minute rush in December. Early planning also creates opportunities to coordinate distributions with your broader tax strategy.
Confirm Beneficiary Designations
Beneficiary designations on retirement accounts, life insurance policies, and other financial accounts should be reviewed periodically. These designations generally override instructions in a will, making it important to ensure they still reflect your wishes.
Evaluate Retirement Savings
Now is a great time to review your retirement contributions and determine whether you're on pace to meet your annual savings goals. If your cash flow has changed during the year, you may have an opportunity to increase contributions before year-end.
Review Your Investment Allocation
Market movements can cause your portfolio allocation to drift over time. A mid-year review can help determine whether your investments still align with your goals, time horizon, and comfort with risk.
Prepare for Upcoming Life Events
Marriage, retirement, the birth of a child or grandchild, a new job, inheritance, or other significant life events can all impact your financial plan. Reviewing these changes before year-end can help ensure your strategy continues to support your evolving goals.
The Value of a Mid-Year Review
Financial planning isn't something that's done once and forgotten. Life changes, markets evolve, and your goals may shift over time.
Taking time to review your financial plan now can help identify opportunities, address concerns, and position you well for the remainder of the year.
If you've experienced a major life event, retirement is approaching, your goals have changed, or you simply have questions about your financial plan, we'd be happy to help.
A conversation today can help ensure you're prepared not only for the rest of this year, but for the years ahead.
Investment advisory services are offered through Keating Financial Advisory Services (KFAS), a Registered Investment Advisor. Advisory services are provided pursuant to a written advisory agreement. This material is provided for informational and educational purposes only and should not be construed as personalized investment, tax, or legal advice. Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results. Any opinions expressed are current as of the date of publication and are subject to change without notice. Clients should consult their tax and legal professionals regarding their individual circumstances before making financial decisions.