Financial planning: 20 questions to consider in your mid-year review

The 2^nd of July was the mid-point of the year, making this month the ideal time to review your financial planning and action any necessary changes. But how do you go about it? We’ve put together this handy list of questions to help you.

Why a mid-year review is important

Our lives are in constant flux, and it’s important that our financial plans evolve in tandem with the changes. Conducting a mid-year financial review is an important exercise to ensure that your financial strategies remain aligned with both your current circumstances and your long-term goals.

A review offers a timely opportunity to evaluate your progress, make necessary adjustments, and address any emerging challenges before they escalate. By taking stock of your financial health at the halfway point of the year, you can better prepare for the future and nip any problems in the bud.

What to do in your mid-year review

To guide you through this essential process, here are 20 key questions to consider during your mid-year financial review.

We’ve split the financial planning process into three sections – wealth creation, wealth protection and estate planning – and produced a list of questions for each section.

As we reach the halfway point of the year, set aside some time to go through them one by one. As you do, highlight any questions that you are struggling to answer and book a review with your financial adviser to discuss anything that you are unsure about.

Wealth creation:

How has my investment portfolio performed year-to-date?
Are there any new investment opportunities I should consider?
Have my financial goals changed since the beginning of the year?
Am I on track to meet my savings targets for the year?
Should I adjust my asset allocation based on market conditions?
Are there any tax-efficient strategies I can implement to optimise returns?
Do I need to revisit my retirement savings plan or contributions?

Wealth protection:

How has my insurance coverage changed since my last review?
Have there been any significant life events that might affect my insurance needs?
Have there been any changes in my employment status that might affect my income protection or insurance needs?
Are there gaps in my coverage that need to be addressed?
Have there been changes in the health of any family members that impact our insurance requirements?
Should I update my emergency fund based on current expenses and savings?
Are there any legal documents (life insurance policies, trusts) that need updating or reviewing?

Estate planning:

Have there been any changes in my estate that would affect my estate planning goals?
Do I need to review my beneficiaries and update my will?
Should I consider establishing or updating a trust based on current assets and family situation?
Are there any charitable giving goals I want to incorporate into my estate plan?
Have there been changes in tax laws that might impact my estate plan?
Do I need to discuss end-of-life care or medical directives?

Once you have considered these questions regarding the wealth creation, wealth protection, and estate planning aspects of your financial plan, get in touch with your financial adviser to set up an appointment.

In the meeting, you can discuss anything you are unsure about and take action on any changes. That will ensure that you have all your ducks in a row for the second half of the year and are on track to meet your long-term financial goals.