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10 Important Tasks for Your Mid Year Checkup

We’re half way through the year. It’s a great time to do a mid-year checkup [1] of your financial situation. Here are a few of the topics that I like to revisit in the summer to make sure that we are on track!

1. Asset allocation rebalancing. Have you rebalanced your portfolio lately? With the decline in the market lately you could be overweighted in bonds. With stock prices down, you will be forced to sell your bonds high and buy your stocks low, just like you are supposed to!

2. Adequate insurance coverage. Do you have enough insurance? (Health, Disability [2], Life [3], Car [4] Homeowners [5], Umbrella, and Flood).

3. Long term goals. Have you set long term goals [6] and put a plan together to achieve those goals? No time like the present to work on them!

4. Set aside money for the holidays. Now is a great time to start saving for the holidays [7]. By December you’ll have money ready to go. If you are a bargain shopper, make your lists now and keep your eye out for sales.

5. Use your vacation time. Make sure that you are using vacation [8]. Sometimes people get so wrapped up in work, they don’t take time off. Instead of being forced to use it all at the end of the year, spend some now while the weather is nice. (As I write this… I’m enjoying my 2+ week vacation!)

6. Read your social security statement. Depending on when your birthday is, you may or may not have received your statement this year. When you get it, did you review all the numbers?

7. Tax withholding. Are you making the amount of income you estimated when you set your withholding level? Now is a great time to make an adjustment using the IRS withholding calculator [9].

8. Reduced capital gains tax. If you are planning on taking advantage of the 0% capital gains taxes this year [10], have you sold your stock yet?

9. Update your beneficiaries. Don’t get caught with an old beneficiary on your account [11]. Make sure your retirement accounts and life insurance policies are up to date.

10. Backup your files. Have you made a backup of your important files [12]?

Do you have additional tasks you’d like to add to the list? Feel free to add them in the comments.

This article is included in: Carnival of Personal Finance #161: The “Feeling Renewed” Edition [13]