Labor Day weekend is behind us, the kids are heading back to school, football is back, and the days are starting to get a little shorter. September always feels like a reset.
We tend to think of January as the time for fresh starts, but the beginning of fall is actually one of my favorite times to take another look at your finances. There are still several months left in the year—enough time to make meaningful adjustments before December arrives.
Here are five areas worth reviewing as we head into fall.
1. Give Your Portfolio a Fall Checkup
Markets move, and over time your investment allocation can move with them. A portfolio that was properly diversified at the beginning of the year may look different today.
This is a good time to review your mix of stocks and fixed income, make sure you are still properly diversified, and determine whether the amount of risk you are taking remains appropriate for your financial plan.
The goal isn't to react to every market headline. It's to make sure your investment strategy continues to match your long-term objectives.
2. Review Your Retirement Contributions
There are only a few months left in the year. Take a look at what you've contributed to your 401(k), 403(b), IRA, or other retirement accounts.
If you're behind where you wanted to be, there may still be time to increase contributions. If you're approaching retirement, this is also a good opportunity to review your expected income needs and make sure your savings strategy remains on track.
3. Start Thinking About Year-End Taxes
April may feel far away, but good tax planning often happens before December 31.
Fall can be a good time to discuss potential capital gains and losses, charitable giving, retirement distributions, Roth conversions, and other planning opportunities with your financial and tax professionals.
Waiting until tax season can mean some planning opportunities have already passed.
4. Prepare for Open Enrollment
Fall also means open enrollment season for many employers, Medicare beneficiaries, and families reviewing health insurance coverage.
Don't simply select the same benefits you had last year without looking at them. Review your health insurance, life and disability insurance, HSA or FSA contributions, and other workplace benefits.
Your life can change considerably in a year, and your benefits should change with it when appropriate.
5. Revisit the Family Budget
Summer can get expensive. Vacations, camps, dinners out, home projects, and other activities can add up quickly.
As the kids go back to school and routines return, September is a natural time to look at where your money has gone this year. Compare your spending with your original plan and make adjustments for the final four months.
And don't forget what's coming next: the holidays will be here faster than we think. Planning for those expenses now can help prevent an unwelcome credit-card bill in January.
Use the Change of Seasons as a Financial Reset
Fall is about transitions. School starts, schedules change, leaves begin to turn, and before long we'll be thinking about Thanksgiving and the holidays.
Your financial plan deserves the same seasonal checkup.
You don't necessarily need to make major changes. Sometimes the most valuable thing you can do is confirm that your investments, retirement strategy, spending, insurance, and long-term financial plan are still working together.
At Northern Peak Financial, we are happy to sit down with you, review your accounts and financial plan, and make sure you're positioned for the remainder of the year and beyond.