Why a mid-year financial check-in is essential

As we progress through July, we find ourselves more than halfway through 2026. While it may feel surprising that half the year has already passed, there remains much of the year ahead. Therefore, now is the time to review your financial situation and ensure you finish the year on a stronger footing than you started.

1. Review Your Tax Situation

It is common for people to defer their tax concerns until year-end or the onset of the following tax season. However, mid-year is an ideal time for adjustments that can help mitigate unexpected liabilities next April.

For those who experienced an unexpectedly high tax bill in the previous year due to changes in income or filing status, increasing tax withholdings now could alleviate future tax payment burdens.

Conversely, if you received a larger refund than anticipated and would prefer to keep more money out of each paycheck rather than receive a refund in April of next year, consider reducing your withholdings to prevent overpaying.

Please keep in mind that while these changes are easy to make, each individual's tax circumstances are unique, and consulting with a qualified tax professional for tailored guidance is highly recommended.

2. Reassess Your Financial Allocation

Considering your current financial situation, do you have a monthly surplus, or is your spending exceeding your income?

If you have extra money left over each month, this is a great time to increase contributions to retirement and health savings accounts, which may also serve to reduce your tax obligations.

Conversely, if you are experiencing financial difficulties, reducing contributions to qualified accounts may help ease your cash crunch caused by rising costs. Furthermore, if you carry a balance on multiple credit cards, consolidating them into a personal loan at a lower interest rate through your local bank may help with interest expenses and free up cash.

3. Evaluate Your Investment Portfolio

With U.S. markets bouncing off record highs and concerns growing over a potential correction or recession, assessing your investment portfolio is crucial, particularly if your life has changed in the last twelve months.

For example, maybe you had a child, got married, experienced the passing of a loved one, or are simply nearing retirement and have not revisited your investment strategy; mid-year is a great time to review your investment risk tolerance.

Furthermore, even if it feels like not much has changed in your life, it is advisable to review your finances or meet with a financial advisor annually so that the small changes do not add up to major unplanned shifts that go unnoticed.

Conclusion

Conducting an annual review of your financial circumstances is prudent, and a mid-year assessment offers a timely opportunity to recalibrate your tax strategies, retirement contributions, and investment allocations in alignment with your risk tolerance.

At Lundeen Abrams Advisors, we serve a broad swath of clients across the financial and demographic spectrum. We are currently completing our clients' mid-year financial reviews, and now is the perfect time to learn about your situation and how we can help you. So please reach out to us today to schedule an initial consultation, and we look forward to meeting you soon.