As we move through 2026, it’s important to take time for a mid‑year financial checkup that could yield meaningful benefits before the year is over. Personal and financial events—such as a new job, expanding family, or approaching retirement—can happen at any time and may significantly impact your long‑term goals.
A mid‑year financial review offers an opportunity to revisit your priorities, evaluate your progress, and make adjustments where necessary to stay on track.
1. Manage your Social Security or Pension Benefit Account
Even if retirement feels far off, it’s important to understand where you stand.
Take time to:
- Review your Social Security statement and verify your earnings history
- Estimate your future benefits based on your current earnings
- Consider how those benefits fit into your overall retirement plan
If you have access to a pension or other retirement income sources, revisit those details as well. Understanding what you may receive—and when—can help you better plan for any gaps and make more informed decisions now.
2. 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 forget 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.
3. 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 2026, 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 mid-year 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 Required Minimum Distributions (RMD) from your tax-deferred retirement accounts, although there are some exceptions. You generally have until April 1st of next year to take your first RMD, but after that, the annual distribution must happen by December 31st if you want to avoid a steep penalty.
4. Establish a budget
If you don't have a budget, it's important to begin your mid-year financial assessment by establishing one. For those who already have a budget, evaluating the categories where expenses were lower than expected and exceeded the planned amounts is beneficial. 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.
5. Optimize your cash accounts
Interest rates have been steadily climbing in response to rising inflation. While this may seem unfavorable for those repaying debts, it can actually present an opportunity for 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.
6. Find out what your projected 2026 taxable income is and plan ahead
Take time to evaluate your projected 2026 taxable income and plan accordingly.
You may want to:
- Determine whether you need to make estimated tax payments
- Review your current withholdings to ensure they are sufficient
- Begin considering strategies to manage investment gains and losses
Tax planning doesn’t have to wait until year-end. For example, you can offset capital gains with losses, and if losses exceed gains, you may be able to use up to $3,000 per year to reduce ordinary income.
Being proactive now can help you avoid surprises and make more informed financial decisions as the year progresses.