Mid-Year Financial Check-Up: Navigating Your Wealth in 2024
As we approach the midpoint of the year, it’s helpful to pause and reassess our financial strategies. This mid-year check-up serves as an opportunity to take stock and incorporate recent economic shifts and legislative changes in our Financial Plans. Here are five essential areas to consider:
1. Review Your Quarterly Investments
Mid-year is an ideal time to do a detailed review of your investment portfolio. Look at the performance of your stocks, bonds, investment funds, and other investments relative to the market benchmarks. Consider rebalancing your portfolio to ensure it aligns with your risk tolerance and investment goals. This may also be an opportunity to explore new investment avenues or consolidate gains by divesting from underperforming assets.
2. Assess Your Progress on Debt Management
Evaluate your current debt levels, including mortgages, loans, credit cards and lines of credit. Have you advanced in your debt reduction goals? With interest rates subject to fluctuations, consider if refinancing or renegotiating your debt terms could be beneficial. Managing your debt efficiently can improve your financial flexibility and reduce costs over time. Eliminate non-tax deduction debt.
3. Adapt to Legislative Changes
Recent budget announcements including the increase in the capital gain inclusion from 50% to 66.7% and the changes to Alternative Minimum Tax (AMT), may impact your financial landscape. Assess how these changes affect your current situation and whether you should take action to optimize your tax situation.
4. Plan Ahead for Success
Looking forward to the balance of the year, now is a good time to revisit any plans for major expenditures or investments, such as vacations, cottage or home upgrades. Securing financing, managing capital gains, and ensuring any major purchases align with your long-term wealth preservation and lifestyle goals are key.
5. Explore Opportunities for Charitable Giving
Charitable giving can be a rewarding way to manage your wealth. Not only does it provide a means to contribute to causes important to you, but it also offers potential tax benefits. Evaluate how charitable contributions fit into your broader financial strategy, potentially reducing your taxable income while fulfilling your philanthropic goals. Give appreciated shares to eliminate capital gains.
Conclusion
This mid-year financial check-up is more than a routine overview; it is an important step in proactive wealth management. Each area reflects a component of your integrated financial plan. To navigate these complex areas effectively, contact your advisor to tailor these strategies to your personal situation. Our team at Kerr Financial can provide the specialized insight and guidance needed to help ensure your financial goals are met both now and in the future.
