Do You Have a Mid-Year Financial Planning Strategy for Investors and Fiduciary Advisors.

Whether you live locally in Moorpark, Simi Valley, or anywhere else, you may want to consider having a trusted fiduciary financial advisor help with your mid-year review, as you may see.

If you’re approaching retirement—or already enjoying it—this halfway point in the year is a good time to step back and reassess your financial strategy. With continued market volatility, the possibility of future tax changes, and inflation still affecting everything from healthcare to housing, now is the time for investors, working with a fiduciary advisor, to take action.

Below are what I consider nine essential mid-year strategies—across investments, risk management, retirement planning, and estate matters—to help ensure your financial plan stays on course in 2025 and beyond.

1. Review Your Investments—And Know What’s Coming

Are your investment accounts working toward your retirement goals—or against them? Do you have a formal family financial ‘business’ plan? Are your investments aligned with the plan and has your plan been ‘stress-tested’ for worst-case scenarios?

Why It Matters

If you’ve built up large balances in your traditional IRAs or 401(k)s, you could be setting yourself up for large Required Minimum Distributions (RMDs) later in life. These are taxable and can push you into a higher tax bracket, raise your Medicare premiums, and even cause more of your Social Security to be taxed.

A fiduciary advisor can help you:

  • Rebalance your portfolio to match your current risk tolerance and goals.
  • Evaluate whether it’s time to make Roth conversions, especially while markets are volatile and taxes appear to be ‘on sale’.
  • Determine if your current allocation is too concentrated in any one sector or asset class.  Owning two or three different growth funds isn’t diversification, it’s duplication.

Tip for 2025:

Take advantage of enhanced catch-up contribution limits if you’re age 50 or older. It’s one of the best ways to build your retirement nest egg while reducing your taxable income.

2. Manage Risk Proactively—Not Emotionally

Most investors worry about losing money—but few have a detailed strategy for how to avoid it. If your portfolio drops 20%, you’ll need a 25% gain just to get back to where you started.

Key Questions to Ask:

  • Is your current asset allocation too aggressive—or too conservative—for your goals? Are your goals quantified with amounts and dates? Have they been integrated into your projected returns and tax brackets?
  • Do you have a written plan for how to respond to future downturns?
  • Have you stress-tested your portfolio for rising interest rates or continued inflation?

3. Rethink the Retirement “Spending Phase”

Most of your financial life has probably been about saving and accumulating. But the distribution phase—when you start living off your investments—is completely different. And much more complicated.

Mid-Year Priorities:

  • Review your spending patterns and look for opportunities to reduce waste.
  • Determine your success probability of achieving your goals based on all market and economic data inputs.
  • Build buffers for rising costs, like healthcare, tuition for grandchildren, or supporting aging parents.
  • Make sure you have at least 6–12 months of expenses in an emergency fund.
  • Talk to your advisor about setting up a line of credit or HELOC as a backup.
  • Recalculate your retirement income needs based on current market conditions, projected inflation and tax assumptions.

4. Take Advantage of Roth Opportunities

Roth IRAs and Roth 401(k)s offer tax-free growth and withdrawals, which can be extremely valuable in retirement—especially if future tax rates rise.

If markets are down, converting traditional IRA assets into Roth now means you’ll pay taxes on a lower value—and any future growth can happen tax-free.

If you’re employed and your company offers a Roth 401(k) option, it might be worth considering whether future tax-free income is worth more than today’s tax deduction.

5. Reevaluate Your Insurance Coverage

Insurance often gets overlooked in mid-year planning—but gaps in your coverage can expose your entire financial plan to unnecessary risk.

Things to Review:

  • Life insurance: Do your policies reflect your current needs? How do the living benefits fit into your retirement plan?
  • Long-term care (LTC): Have you planned for it? Costs are rising quickly.
  • Disability coverage: If you’re still working, how would you replace income if you couldn’t work?
  • Home and liability: Rising real estate values are happening virtually everywhere, not just in Moorpark and Simi Valley. This could mean you may now be underinsured.
  • Earthquake and flood insurance: If you live in Southern California, these aren’t optional—they’re essential, though admittedly, it may be difficult to get.

6. Plan Now for Healthcare Inflation

Healthcare is one of the biggest wildcards in retirement. It’s not just about premiums—it’s about out-of-pocket costs, prescriptions, and long-term care.

Consider these actions:

  • You may want to plan for 6% to 8% annual increases in healthcare costs during early retirement.
  • Review Medicare options before you turn 65—mistakes here can be permanent.
  • Consider a Health Savings Account (HSA) if you’re still working and eligible. It’s triple tax-advantaged.

These costs can quickly derail even well-funded retirement plans. It would be wise to get ahead of them now.

7. Refresh Your Estate Plan

Life changes. So should your estate documents.

Mid-Year Estate Planning Checklist:

  • Do your wills and trusts still reflect your wishes?
  • Are your executors and trustees up-to-date—and prepared for their roles?
  • Have you reviewed beneficiaries on retirement accounts, annuities, and insurance?
  • Is asset titling correct (individual vs. joint ownership, trust title, etc.)?
  • Are your powers of attorney and healthcare directives current?

In California and other high tax states, probate can be costly and time-consuming, especially if your estate is not properly titled or your documents are out of date. A small investment in time now can save your loved ones months—or years—of headaches later.

8. Use Smart Gifting and Wealth Transfer Strategies

Want to help your kids, grandkids, or favorite causes while minimizing taxes? 2025 presents a narrow window of opportunity to transfer wealth efficiently.

What You Can Do Now:

  • The annual gift tax exclusion is $19,000 per person in 2025— it might be wise to use it.
  • Consider gifting depressed assets now into trusts to remove future appreciation from your estate.
  • Explore donor-advised funds (DAFs) or charitable trusts to combine tax benefits with giving.
  • Start involving your children or heirs in your financial vision—this fosters trust and reduces future conflicts.

You don’t need to be ultra-wealthy to benefit from smart estate planning. Many families in Simi Valley and Moorpark are surprised how much wealth they’ve built—and how vulnerable it is to unnecessary taxes.

9. Make Charitable Giving More Efficient

If you’re planning to give, do it wisely. Mid-year is a great time to review charitable strategies with tax implications.

How to Give Smarter:

  • Use Qualified Charitable Distributions (QCDs) if you’re over age 70½. You can gift up to $108,000 directly from your IRA, tax-free.
  • A one-time QCD of $54,000 can be directed to a charitable gift annuity or trust in 2025.
  • Donate appreciated stocks or funds instead of writing checks—avoid capital gains and take a deduction.
  • Bunch donations into a single year to maximize itemized deductions.

These strategies are especially effective for retirees with large IRAs or taxable portfolios who want to make a difference without increasing their tax bill.

Final Thoughts: Take Control at the Halfway Point

Whether you’re retired or getting close, this is not the time to put your finances on autopilot. A mid-year checkup is essential—and having a financial advisor by your side – one who will accept fiduciary status in writing – ensures that all strategies are designed in your best interest.

You don’t have to live near Moorpark or Simi Valley to get help – though I do enjoy office visits. I can be of help wherever you are.

Mid-year planning can put you back in control—and help you finish the year with greater clarity and peace of mind. Use this checklist below!

This year, take the opportunity to:

  • Reduce taxes
  • Improve income security
  • Minimize risk
  • Protect your legacy

You can learn more about my practice or subscribe to my newsletter, on my website.

Let me know if I can help!

Jim

author avatar
Jim Lorenzen

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Jim Lorenzen, CFP®, AIF®

Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® in his 21st year of private practice as Founding Principal of The Independent Financial Group, a fee-based registered investment advisor. He is also licensed for insurance as an independent agent under California license 0C00742.  IFG helps specializes in crafting wealth design strategies around life goals by using a proven planning process coupled with a cost-conscious objective and non-conflicted risk management philosophy.

Opinions expressed are those of the author.  The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

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Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® in his 21st year of private practice as Founding Principal of The Independent Financial Group, a fee-based registered investment advisor. He is also licensed for insurance as an independent agent under California license 0C00742.

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