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7 Financial Items to Review At Mid-Year

7 Financial Items to Review At Mid-Year

June 14, 2023

With June upon us, it’s important to take time for a mid year financial checkup that could yield rewards long after the summer is over.  Personal and financial events, such as getting married, sending a child off to college, or retiring, happen throughout the year and can have a big impact on your overall financial goals. Your mid year financial review should revisit each of your priorities. Since your ability to save may be affected by your spending, it can make sense to review your spending and see how it lines up with your plan. 

1. Check at least one of your credit reports

And do the others in the coming months. Everyone can obtain free credit reports through You're allowed one free report every 12 months from each of the three reporting bureaus - Experian, Equifax and TransUnion.

The information in credit reports is used to tabulate your credit scores - numbers that lenders use to determine whether to extend loans and at what interest rates. You can test your knowledge by taking the 12-question quiz at

2. Manage your Social Security or Pension Benefit Account

Even if you're too young to start collecting a pension or Social Security retirement benefits, there are reasons to pay attention. By opening a "My Social Security" account at, you can learn more about the program, estimate your benefits, and verify that your annual earnings have been accurately reported by employers.

When you investigate your pension benefit options, you will learn about what age you can start collecting without penalty, see if you will be affected by the windfall, and find out how much income you need to supplement the pension in retirement, so you can plan ahead.

3. Properly Title and Update your beneficiaries

In the United States, unclaimed payouts from policies such as life insurance are vast. In fact, life insurance companies hold at least $7.4 billion in unclaimed benefits that should go to beneficiaries. But many Americans are forgetting to keep their beneficiary details updated; as a result, large amounts of money go unpaid. Each stage of life brings changes, such as new family members and new marriages. As you grow older, updating your beneficiary listings is essential so you’re able to pay out the money you’ve invested to your loved ones.

4. Review your investment and retirement accounts

While it's anyone's guess whether the financial markets will be volatile or continue rising, it's certainly wise to review your accounts and make sure they match up with your overall goals and risk tolerance.

Are you planning to retire or have any birthday milestones in 2023 such as age 50, 59 ½ or turn 73. If you’re planning to retire this year, the retirement accounts you tap first and how much you withdraw can have a major impact on your taxes as well as how long your savings will last. A midyear tax checkup is a good time to start thinking about a tax-smart retirement income plan.

If you’ll be age 73 this year, don’t forget that you may need to start taking a required minimum distribution (RMD) from your tax-deferred retirement accounts, although there are some exceptions. You generally have until April 1 of next year to take your first RMD, but, after that, the annual distribution must happen by December 31 if you want to avoid a steep penalty.

5. Establish a Budget

If you don't have a budget, it's important to begin your midyear financial assessment by establishing one. For those who already have a budget, it's beneficial to evaluate the categories where expenses were lower than expected and where they exceeded the planned amounts. Additionally, consider how any changes in income might impact your budget moving forward.

A well-rounded budget incorporates a strategy to establish or sustain an emergency fund, especially in light of the previous year's challenges that led to unexpected job losses and financial uncertainties caused by the coronavirus pandemic. 

While conducting your budget assessment, be vigilant about identifying any avoidable expenses, such as excessive shopping, unnecessary subscriptions, or recurring fees. This is the perfect moment to eliminate them. For instance, consider canceling a rarely used streaming service or closing a bank account that incurs maintenance fees but is no longer in use. By doing so, you can ensure a strong finish to the year by trimming unnecessary expenditures from your budget.

6. Optimize your cash accounts

In response to rising inflation, interest rates have been steadily climbing. While this may seem unfavorable for those repaying debts, it can actually present an opportunity for your savings accounts.

If you're solely relying on a checking account, you're missing out on a vital financial tool—a savings account. If you already have an emergency fund, it's crucial to make the most of that cash by exploring competitive interest rates that allow your money to work for you. Neglecting the potential of underutilized savings accounts could mean leaving money on the table. Contact our office today to discover a savings account tailored to your specific requirements.

7. Find out what your projected 2023 taxable income is and plan ahead

Take advantage of the new 2023 important tax changes. You might want to assess whether you are subject to making estimated payments and check whether the amount you're having withheld from paychecks is sufficient. Also, it's not too early to start thinking about managing taxable investment gains and losses. You may offset gains with losses and - to the extent you have excess losses - use them to shelter up to $3,000 in ordinary income per year. Click on our 2023 Tax Planning Guide here.

At IIS Financial Services, we are here to help you through each step, so please let us know if you have any questions about these items or the bigger strategies guiding your financial goals and retirement.

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