Summer. The season of sand, barbecues, vacations, and—careful examination of your financial situation? At Opus 111 Group, we think the early part of the summer is the perfect time for exactly that. Midyear is a great time to figure out where you are and, more importantly, where you’re going. Below, I’ve outlined several key questions to ask yourself (and your advisor) as you begin this discussion!
Taking the time to examine each of these 8 Key Items and the questions underneath. You can go through them by yourself or with your partner. Take time to think about (and as a best practice, take notes!) your response to each of these questions, and what sort of changes you may want to consider for the remainder of the year.
Spending and Investing
- Can we comfortably afford our current spending?
- How much have we spent, year-to-date?
- What areas are we spending more than we anticipated at the start of the year? Can we reduce that spending, if we need to?
Gifting and Charitable Giving
- Do we plan on giving any gifts to friends or relatives this year? Will those gifts be under the annual gift tax exclusion amount ($18,000 per person per recipient in 2024)?
- Do we plan to give any gifts to charity this year? Have we worked with our advisor or tax professional to consider the tax ramifications of giving?
Administrative
- Do all our accounts have the correct mailing address on file?
- Are the listed beneficiaries of our accounts who they ought to be, and are those beneficiary designations in line with our wishes or formal estate plan?
Debt Planning
- What is the current status of any debt we may have, and do we have a plan to address that debt?
- Depending on the interest rate for each debt and possible prepayment penalties, should we discuss making additional payments for any of our debts with our advisor?
Insurance Needs
- Are we comfortable with our current level of insurance coverage?
- If we have supplemental Disability Insurance coverage and have recently received a large raise or promotion, have we contacted our carrier or advisor about increasing our coverage level?
Long-Term Goal Progress
- Do we still feel that our stated long-term goals are in alignment with our values and what we want from life?
- Do we feel like we are on target to meet those goals?
Retirement Contributions
- Based on our contributions so far this year, how much will we have saved for retirement by the end of the year?
- Can we afford to increase our rate of contribution, if we have not already maxed them out?
Tax Planning
- What is our next realized capital gain or loss so far this year?
- Do we have any net capital losses from previous years left available to us?
- How do any planned contributions to our retirement accounts or charitable donations affect our tax liability for this year and beyond?
This list is by no means exhaustive but can spark great conversations between you and your advisor to help make sure you’re on the way toward living the life you imagine!
Andrew Harvey, AIF®, CPFA™ is the Vice President of Operations and a Financial Advisor at Seattle-based Opus 111 Group. He created Opus 111 Group’s SYFI (Secure Your Financial Independence) Program for young investors in 2022 and works in Opus’ Retirement Plan Consulting division. In his spare time, he plays the Irish sports of hurling and Gaelic football for USGAA side Tacoma Rangers. Andrew lives in Kent, Washington with his wife Lauren and their cats, Bella and Leeloo.