By Matt Donahue, CFP®
The market isn’t static, and your investment strategy doesn’t need to be either. The middle of the year is a great time to revisit your portfolio and make changes as needed.
When I work with a client, my goal is to tailor their mid-year market check-in to their specific objectives, but following are some key themes that often come up.
Reassess Your Allocation
As markets move, they rarely go in lockstep. This means that even if you’ve carefully allocated your assets initially, your portfolio can easily drift away from your target mix over time.
Even a seemingly minor drift can dramatically change your risk exposure. It’s not unusual for a 60/40 portfolio to drift to 70/30 without an investor even noticing.
Regular portfolio check-ins can help you realign your portfolio with your long-term plan. Portfolio rebalancing is often part of that check-in, and for many of my clients, rebalancing includes these steps:
- Selling what’s grown past plan
- Buying what’s lagged
- Rebalancing within tax-deferred accounts to avoid taxable gains
- Using required minimum distributions (RMDs), dividends, and your new contributions as rebalancing tools
Think of rebalancing as a discipline, not a market call. It’s important to note that even in an up market, you still may be able to take advantage of tax-loss harvesting with bonds and international sleeves. Thrive Wealth’s downloadable diversification guide can help you weigh strategic decisions like this.
Revisit the Goals, Not Just the Numbers
In a strict sense, a market check-in is about the numbers. However, it also offers you an opportunity for a more important conversation. During check-in, I often ask clients about changes to their goals. We discuss life events like promotions, health challenges, and interstate moves that might already be reshaping their financial plan.
The midpoint of the year is also an ideal time to take another look at these aspects of your retirement income planning:
- Verifying that contributions to your 401(k), 403(b), or HSA are on track
- Completing backdoor Roth or mega-backdoor Roth conversions, if needed
- Checking in on SEP-IRA or solo 401(k) funding pace (for self-employed clients)
For clients putting aside money for their children’s college tuition, this check-in is also a good time to take a look at 529 plan balances and targets.
It’s important to reassess your estate plan regularly, so if you need to update beneficiary designations or review life insurance policies, this is an excellent time to do that too.
Steps like these are an integral part of our signature iThrive Life Planning Process. We’re revisiting your Vision while guiding you through the critical Monitor stage.
Capture Time-Sensitive Opportunities
Why conduct your market check-in in the middle of the year and not in December? Looking at your finances in June or July can give you time to course-correct before it’s too late for this tax year. Here are a few examples of time-sensitive opportunities:
- Reviewing estimated taxes or withholding to avoid unpleasant surprises in April
- Planning and executing tax-efficient charitable gifts
- Looking over restricted stock unit (RSU) vesting dates
- Getting income estimates to size Roth conversions
Now might also be a helpful time for clients to reassess their cash positions by taking into account their existing emergency funds and short-term financial goals, since money market and Treasury yields have come off their peaks.
Ready for Your Mid-Year Market Check-In?
At Thrive Wealth Management, LLC, we believe that building wealth is a collaborative process. We’re here to support you as you work toward your financial goals, and if you’re ready to check in on your portfolio, we’re here to help. Scheduling a complimentary financial review with us can help you pressure-test your plan before year-end deadlines arrive.
If you have questions or just want to learn more about us and what we do, contact us online today. To schedule a meeting, call (215) 376-5530 or email Matt@thrivewealth.com.
Frequently Asked Questions
How often should I review my portfolio?
Many investors benefit from reviewing their portfolios at least annually, with a mid-year market check-in serving as an opportunity to assess allocation drift, investment performance, cash reserves, and progress toward financial goals. A review can also help identify tax-planning opportunities and determine whether recent life changes warrant adjustments to your overall strategy.
What should I look for during a mid-year market review?
A thorough mid-year market review might evaluate your asset allocation, portfolio risk level, retirement contributions, tax strategies, estate planning updates, and short-term cash needs. It’s also important to consider whether changes in your personal circumstances or financial objectives require updates to your investment plan.
Can a financial advisor help with a mid-year market check-in?
Yes. A financial advisor can help identify portfolio drift, evaluate tax-saving opportunities, review retirement and investment strategies, and help determine whether your current plan remains aligned with your goals. At Thrive Wealth Management, mid-year reviews are designed to help clients make informed adjustments before year-end deadlines arrive, allowing more time to take advantage of planning opportunities.
About Matt
Matt Donahue, CFP®, is a Financial Planner at Thrive Wealth Management in Blue Bell, Pennsylvania, where he builds long-term client relationships through transparent, personal financial guidance. Drawing on over a decade of experience that began at United Capital, he specializes in translating complex financial topics into clear, empowering strategies for life’s transitions.
Disclosure:
This material is provided for informational and educational purposes only, should not be viewed as an exhaustive discussion of the topics presented, and should not be construed as individualized advice for any reader’s personal circumstances. For guidance on how these matters may impact your financial plan or investment portfolio, please contact your Thrive Wealth Management, LLC representative. While the information presented is believed to be factual and up to date, Thrive Wealth Management, LLC does not guarantee its accuracy and, due to various factors, including but not limited to changing laws and regulations, this information is subject to change. All expressions of opinion reflect the judgment of the authors as of the date of publication. Thrive Wealth Management, LLC is not a law firm or an accounting firm, and no content contained herein should be construed as legal or accounting advice. Please consult with the qualified professional(s) of your choosing for legal and accounting advice.
Please visit https://thrivewealth.com/disclosure for additional information regarding the professional designations and credentials discussed. Professional designations and credentials do not guarantee success or any particular investment or financial outcome.
Past performance does not guarantee future results. All investing comes with risk, including risk of loss.
