Now is the Time to Revisit Your Financial Plan, Don’t Wait Until December
By Rachel Wood
We’re well past the halfway point of 2025. Now is the time to revisit your financial plan, don’t wait until December.
Several key areas are worth reviewing to stay on track for the year:
✅ 𝗥𝗲𝘁𝗶𝗿𝗲𝗺𝗲𝗻𝘁 𝗣𝗹𝗮𝗻 𝗖𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻𝘀 – Check your progress toward contribution goals across your 401(k), Roth IRA, Traditional IRA, or Health Savings Account (HSA). If you aren’t where you hoped to be, now is the time to adjust those systematic contributions to hit your goal!
✅ 𝗥𝗼𝘁𝗵 𝗖𝗼𝗻𝘃𝗲𝗿𝘀𝗶𝗼𝗻𝘀 – A mid-year check-in is a good time to evaluate whether converting funds from a Traditional IRA to a Roth IRA makes sense for you. Your financial and tax advisors can help you walk through the potential benefits and considerations.
✅ 𝗥𝗲𝗾𝘂𝗶𝗿𝗲𝗱 𝗠𝗶𝗻𝗶𝗺𝘂𝗺 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻𝘀 (𝗥𝗠𝗗𝘀) – If you're age 73 or older, or if you’ve inherited a pre-tax retirement account, you're likely required to take an RMD in 2025. It’s important to know the correct amount and distribute it before the end of the year to avoid unnecessary penalties.
✅ 𝗖𝗵𝗮𝗿𝗶𝘁𝗮𝗯𝗹𝗲 𝗖𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻𝘀 – If charitable giving is part of your financial plan this year, now is the time to think through your strategy. You might consider qualified charitable distributions (QCDs) from an IRA if you’re over age 70.5, gifting appreciated assets, or contributing to a Donor Advised Fund.
✅ 𝗙𝗹𝗲𝘅𝗶𝗯𝗹𝗲 𝗦𝗽𝗲𝗻𝗱𝗶𝗻𝗴 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝘀 (𝗙𝗦𝗔𝘀) – For those contributing to an FSA through their employer, remember that many plans operate on a “use it or lose it” basis. If funds remain, consider applying them toward eligible expenses like dental work, glasses, or other medical needs before the deadline.
✅ 𝗥𝗶𝘀𝗸 𝗧𝗼𝗹𝗲𝗿𝗮𝗻𝗰𝗲 𝗮𝗻𝗱 𝗔𝘀𝘀𝗲𝘁 𝗔𝗹𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻 – Market conditions change, and a yearly review with your financial advisor makes sure the risk you’re taking is appropriate. If you haven’t reviewed your portfolio recently, now is a great time to do so.
Get in touch with an advisor at Legacy Financial Group today to make sure you are on track for 2025!
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Disclosures: The material presented by Rachel Wood is for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Actual economic or market events may turn out differently than as presented. Rachel Wood is a Partner and Financial Advisor with Legacy Financial Group. Advisory services are provided by Legacy Financial Group, a registered investment advisor with the Securities and Exchange Commission. Materials posted to this site are from external sources and are provided for your convenience in locating related information and services. Legacy expressly disclaims any responsibility for and does not maintain, control, recommend, or endorse third-party sites, organizations, products, or services, and make no representation as to the completeness, suitability, or quality thereof.
Converting an employer plan account or Traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including but not limited to, a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.
Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.
