Midyear Money Moves

We’re halfway through 2023—an excellent time to reflect on some bigger-picture planning priorities that can impact your family’s wealth.

Some important questions to consider when making midyear money moves:

Has your risk toleranceThe amount of loss an investor is willing to absorb in their investment portfolio. changed? How you feel about riskThe probability that an investment will decline in value in the short term, along with the magnitude of that decline. Stocks are often considered riskier than bonds because they have a higher probability of losing money, and they tend to lose more than bonds when they do decline. can shift as your investment time horizon changes or as your goals evolve. Maybe you’ve decided to remarry or pay for your grandkids’ college education. Midyear is an excellent time to reexamine your asset allocation, retirement savings strategy and insurance coverage. Talk to us if you’ve experienced any changes in life so we can review and update your financial plan accordingly.

What are your lifestyle priorities? Milestones such as marriage or retirement and external events like living through a global pandemic can upend life and make us rethink our priorities. Many of our clients are planning to move to a different part of the country, for example, and others are starting a business for the first time. If you are planning big changes in your own life, let’s talk about how Adviser can help.

Is it time to talk to your kids about wealth? Studies show that most couples haven’t had a candid conversation with their kids (or their parents) about their estate. Some fear that an inheritance may affect their child’s ambition. Others simply prefer to avoid discussing money. Yet transparency is an important part of estate planning, and it’s a way to bring family closer. Your advisor can help you decide when to tell your kids about your trustsA legal document that functions as an instruction manual to how you want your money managed and spent in your later years as well as how your assets should be distributed after your death. Assets placed in a trust are generally safe from creditors and can be sold by the trustee in short order, avoiding the lengthy and costly probate process., living will, business succession strategy and the details of your estate plan. We can also help facilitate family conversations that can set expectations and help preserve your wealth.

What other midyear money moves should you make? June is also a good time to take stockA financial instrument giving the holder a proportion of the ownership and earnings of a company. of your income and tax withholdings. Small adjustments now can mean no surprise tax bills come April. And you can plan for actions you’ll take later in the year—including a Roth IRAA type of account in which funds can be saved and invested without being subject to tax until the account holder reaches retirement age. conversion or potential tax-loss harvesting. If you must take required minimum distributions (RMDs), prepare to take them by year-end.

With these questions answered, all that remains is to enjoy your summer vacation. If you are a client, please let us know where you decide to go and send us a photo.

If you are not a client, click here to book a meeting with one of our expert financial advisors to discuss these midyear money moves now!