Michelle Bester CFP How to Conduct a Mid Year Financial Review 24July2024

How to Conduct a Mid-Year Financial Review

 

By Michelle Bester CFP®

 

The saying “failing to plan is planning to fail” emphasizes the importance of thoughtful preparation and foresight. Whether it’s financial planning, project management, or personal goals, having a well-thought-out plan significantly increases the likelihood of success.

 

Conducting a mid-year financial review is essential for maintaining your financial health and staying on track with your goals. Here are some key steps & reasons why you should consider it:

 

Evaluate Investments by Spotting Opportunities and Risks:

Mid-year is an excellent time to assess the performance of your investments.

 

Reconsider & Adjusting Financial Goals:

Goals set at the beginning of the year may no longer align with your current situation or the broader economic landscape. A mid-year review allows you to adjust these goals, ensuring they remain realistic and achievable. Whether it’s ramping up savings, reducing spending, or shifting investment focus, the review acts as a corrective lens for your financial roadmap.

 

Review Tax Planning Strategies:

Identify tax-saving opportunities before year-end. Early planning ensures you are prepared for tax season, whether through charitable donations, investment in Tax-Free Savings Accounts on contributions to a retirement fund.

 

Budget Realignment:

Assess whether your budget effectively supports your financial goals. Adjust spending patterns to align with income and financial objectives or reallocate funds to prioritise areas of higher return.

 

Review Insurance Policies: Regularly review your insurance coverage. Consider changes in your expenses and whether you need increased coverage. Don’t assume policies purchased years ago still meet your current needs.

 

Analyse Your Cash Flow:

Cash flow is the lifeblood of your finances. Evaluate your inflows and outflows to ensure liquidity and identify any areas for improvement.

 

Assess Your Debt:

Review outstanding debts, interest rates, and repayment schedules. Consider refinancing options if necessary.

 

Estate Planning:

Review wills and provisions for future decision-making. Protect and distribute your assets according to your wishes.

 

Plan for the Future:

Use the insights from your review to make informed decisions and set a course for the remainder of the year. Remember, every rand should contribute to achieving your financial aspirations!

Conducting a financial review on your own can indeed be challenging. We therefore recommend partnering with a Certified Financial Planner (CFP) to assist with the process.

Having a mid-year review with a Certified financial planner (CFP) offers several advantages:

 

Expertise:

CFPs have specialised knowledge in financial planning, investment strategies, and risk management. They can provide personalized advice based on your unique situation.

 

Holistic Approach:

CFPs consider all aspects of your finances—investments, taxes, insurance, estate planning, and retirement. They help you create a comprehensive plan.

 

Objective Guidance:

An external professional provides an unbiased view. They aren’t emotionally attached to your finances, ensuring objective recommendations.

 

Customised Strategies:

CFPs tailor strategies to your needs. They optimise your portfolio, suggest tax-efficient solutions, and align investments with your goals.

 

Accountability:

Regular reviews with a CFP keep you on track and accountable for your financial decisions.

In summary, a CFP can be a valuable partner in achieving your financial aspirations & goals.

 

Read more about Ascor® Financial Planning Services

Ascor® Independent Wealth Managers Financial Planning Services page

 

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