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Summer Time Check-In: Review, Evaluate and Execute on Yearly Planning Goals

Summer is an ideal time to evaluate the progress of your annual financial goals, and get an early start on executing goals with a calendar year-end deadline.

Summer Time Check-In: Review, Evaluate and Execute on Yearly Planning Goals

Summer is an ideal time to evaluate the progress of your annual financial goals and get an early start on executing goals with a calendar year-end deadline. With slower work environments and the busy fall on the horizon, take advantage of some downtime to ensure your financial success. Although financial planning might be the last thing on your mind as you sip a cocktail on the beach, giving some thought towards the end of year planning can mean all the difference between proper executing and falling behind.

There are many seemingly small annual tasks that should be part of any sound financial plan, and while these tasks are conceptually simple, effective execution can require effort and planning. Now is the time to check in on progress, and start crossing things off the list.

Here are a few tasks to complete during the slow summer months before we head towards year-end.

  1. Rebalance Investment Accounts: After six months of volatility, it’s time to ensure that your asset allocation hasn’t drifted into an area that doesn’t match your risk profile. Have equities outperformed while bonds lagged, or vice versa? Has Europe outperformed the US? It’s time to make changes and bring the asset allocation back to target.
  2. Review Year to Date Spending and Savings: Take a gander at the first six months of spending to see if you’re on track with budgeting or savings goals. Any outlandish spending categories on the credit card? As mentioned above, it’s important to understand exactly how savings will be funded. And for those that seek to max out their company 401(k)—track that progress as well.
  3. Initiate Time Sensitive Transactions, such as Roth Conversions: Year-end is the due date for Roth conversions, but why wait? Take a few minutes over the summer or early fall to (1) initiate the transfer and (2) set cash aside to pay any additional taxes due as a result of conversion.
  4. Review Company Equity Vesting: For individuals with equity compensation such as stock options, restricted stock units (RSUs) or employee stock purchase plans (ESPPs), make sure that you’re cognizant of any items that have vested year to date and will vest by year end, and plan for it. Also, be wary of any stock options that might expire by year-end. Lastly, in the event of recent volatility in the stock price, your entire situation may be different than it was six months prior—and a full review is in order to possibly develop a different plan.
  5. Track Medical Spending and HSA Activity: With employee benefits open enrollment just a few months out, it makes sense in the summer and early fall to understand whether the benefits chosen are best for your individual situation. If you’re contributing to an HSA, is it an appropriate amount? You will be prepared to make a more informed benefits decision come open enrollment.

While these all sound like standard operating procedures for diligent individuals, even the best-laid plans fall victim to poor execution due to the business of life, work, and family.

These are just a few minor financial planning items to consider as you progress through the summer into fall. Of course, if you work with a capable financial planner like Claro Advisors, you shouldn’t have to worry about these things. If you need help, contact us today.

Disclosure: Claro Advisors, LLC ("Claro") is a registered investment advisor with the U.S. Securities and Exchange Commission ("SEC"). Information contained herein is for educational purposes only and is not to be considered investment advice. Claro provides individualized advice only after obtaining all necessary background information from a client. Information contained herein is taken from sources believed to be reliable, but cannot be guaranteed as to its accuracy. It is for informational and planning purposes. Nothing herein shall be construed as an offer or solicitation to buy or sell any securities. Nor is it legal or accounting advice. Investing carries risks and expenses and involves the potential loss of investment. Past results are not indicative of future results.

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Disclosure: Claro Advisors LLC ("Claro") is a Registered Investment Advisor with the U.S. Securities and Exchange Commission ("SEC") based in the Commonwealth of Massachusetts. Registration of an Investment Advisor does not imply any specific level of skill or training. Information contained herein is for educational purposes only and is not to be considered investment advice. Claro provides individualized advice only after obtaining all necessary background information from a client. Disclosures and Terms of Use. 

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