Performing a Mid-year Financial Check-up


Why is performing a mid-year financial check-up important?  Performing a mid-year financial check-up is akin to visiting a doctor for an annual physical or visiting an auto mechanic for a periodic tune-up.  The purpose is two-fold; the first is preventative that is, identifying and addressing potential issues before they become significant problems.  The second purpose is diagnostic, that is, identifying and addressing any problems that may already have materialized.


April or May are good times of year to perform such a check-up, particularly if you have already filed your tax returns.  There is a treasure trove of information on your tax return that can assist you in reviewing your financial situation.  Listed below are several areas in which your tax return can help you update your financial health:


·         Updating your budget.  Your tax return is the perfect tool to help you update your budget, as it contains all your sources of income, and may contain some information on your expenses as well.  Periodically reviewing your budget is crucial to ensuring that you live within your means and stay on target to meeting your financial goals, objectives, and dreams.

·         Portfolio review.  Analyzing your tax return for items such as investment income and capital gains can lead to a broader review of your portfolio and your overall goals and objectives.  For example, are there any investments that are tax inefficient and which could be upgraded within your portfolio?

·         Withholding.  If you received a larger than expected refund, it may be advisabl

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