By Joel Dresang
The lazy days of summer include relatively slow times for financial markets. Fewer shares are trading hands. Wall Street dealers have exchanged their wingtips for flip-flops as they take their families to the shore.
“It’s a good time for investors broadly to reassess what they’re doing,” Kyle Tetting says, “not just from a portfolio balance perspective but making sure that they’re checking all the boxes for all the various items we think are important for savers, important for investors.”
Click here to listen to the Midyear Planning Podcast, which includes links to further resources.
In a special Money Talk Podcast, Kyle teamed up with Art Rothschild and Steve Giles to chat about the steps investors should consider midyear to make sure they’re on track with their money plans.
Art explained ways to take advantage of tax breaks for retirement saving – both through the workplace and on your own.
“You have to optimize the way you put money away,” Art said.
Steve advised parents to teach kids with summer jobs the valuable habit of saving a portion of what they earn.
“What is the one thing that all of our retirees tell us when they retire? ‘I wish I had started sooner. If I had started sooner, I could have retired sooner. If I had started sooner, I could have more income in retirement,’” Steve said. “So, as much as saving is important, the sooner you start, the better off you’re going to be longer term.”
Investors who are approaching retirement have a chance midyear to visit with their advisor and look at rebalancing their portfolios according to investment performance and personal plans.
Those who have already retired have an opportunity halfway through the year to take stock of their holdings and address tax liabilities. They can also strategize on the best places to tap cash for their spending needs.
“It’s an important exercise,” Art said. “This is a great time to do it.”
Kyle explained that midyear adjustments are especially important for issues with year-end consequences, such as retirement account distributions, taxes and charitable giving.
Steve added that investors who keep in touch with their advisors help make sure their situations are understood and addressed.
“Come in often enough and visit with us and share your goals,” Steve said, “so that we can make the most of your decisions.”
Joel Dresang is vice president-communications at Landaas & Company, LLC.