With the first half of the year behind us, now is an ideal time to take a step back and assess your financial position. A mid-year financial health check allows you to measure progress against your goals, review your investment performance, and make any necessary adjustments to your tax planning strategy. In an ever-changing economic and geopolitical environment, such timely reviews are not just advisable – they are essential.
Conducting a comprehensive financial review mid-year can help identify potential shortfalls and opportunities, keeping you on track for a more secure and prosperous 2025. This approach not only supports long-term wealth building but also ensures you are making informed financial decisions that reflect current market conditions.
Reviewing Your Financial Goals
Start by revisiting the goals you set at the beginning of the year. Are you saving enough towards your retirement, your children’s education, or a future home? Have your priorities changed due to personal or professional developments? Realigning your plan to reflect your current aspirations helps ensure that your financial strategy remains relevant and effective.
Clarity around your goals is the foundation of any successful financial plan. Use this mid-year checkpoint to ensure that your short-, medium-, and long-term objectives remain realistic and aligned with your income, lifestyle, and timeframes.
Assessing Investment Performance
Markets have faced considerable volatility in recent months, influenced by factors such as ongoing trade tensions, shifting central bank policies, and broader geopolitical uncertainties. Reviewing your investment performance mid-year gives you the opportunity to evaluate whether your portfolio remains aligned with your risk tolerance and long-term objectives.
This is also a chance to check whether your asset allocation is still appropriate. Diversification remains a cornerstone of sound investing, particularly in uncertain times. Rebalancing your portfolio, if necessary, helps maintain a healthy balance between risk and return.
Reviewing your investment strategy regularly can also reveal if any holdings have consistently underperformed or if there are new opportunities that better align with your goals. If you work with a financial adviser, this is the perfect moment to revisit your investment review together.
Revisiting Tax Planning Strategies
Tax planning is not a once-a-year activity. Mid-year is a sensible point to consider whether you are making full use of available allowances and reliefs, including:
- ISA contributions
- Pension contributions
- Capital Gains Tax allowances
- Gift allowances for Inheritance Tax planning
Strategic use of these reliefs can significantly enhance your financial efficiency. With potential tax reforms on the horizon, it is prudent to take advantage of current rules while they remain in place.
If you are a business owner or have more complex financial arrangements, there may be additional planning opportunities around dividend strategies, corporation tax changes, and salary versus drawdown decisions. These should all be reviewed in the context of your broader financial picture.
Adapting to Change
The financial landscape continues to evolve. Inflation pressures, global trade disruptions, and potential changes to tax legislation all highlight the importance of flexibility in your financial plan. Rather than reacting to headlines, a structured mid-year review enables you to respond thoughtfully and with purpose.
Regular check-ins help ensure you are not only protecting your assets but also positioning yourself to take advantage of change. Whether it’s reallocating investments, increasing savings, or reassessing risk levels, timely action based on reliable insights can strengthen your financial resilience.
Why a Mid-Year Financial Review Matters
A mid-year financial health check is more than a routine task – it’s a proactive step toward financial well-being. By reflecting on your goals, performance, and plans mid-year, you give yourself time to make meaningful adjustments before year-end. This can reduce financial stress, improve outcomes, and bring greater clarity to your financial journey.
Whether you’re a seasoned investor or just beginning your wealth-building journey, a structured review offers invaluable perspective. It ensures that you’re on the right path and gives you confidence to make informed decisions, no matter what the markets or the world throw your way.
How Fogwill & Jones Can Support You
At Fogwill & Jones our advisers can help you carry out a financial health check and work with you to make sure your plans are on track to meet your objectives.
Let us help you take stock of where you are and make informed decisions to keep you on course for your 2025 goals. Contact us today to arrange your mid-year financial review and ensure your plans remain on the path to success.
