Is Your Retirement Plan on Track? Five Questions to Ask This Fall
Is Your Retirement Plan on Track? Five Questions to Ask This Fall With only a few months left in the year, October is a good moment to find out whether your retirement plan is wher
The year is roughly three-quarters done, the holidays haven’t yet crowded your calendar, and there is still time to act before December 31. Good wealth management isn’t about chasing the hottest investment.
It is about making sure every dollar you own is working toward the life you want. Here is a practical framework for a fall review.
Wealth management goes well beyond picking investments. It is the coordination of everything that touches your money: investments, cash flow, insurance, taxes, estate plans, and charitable goals. When these pieces are managed separately, they tend to work against each other. A portfolio built without regard for taxes, or an estate plan that ignores how your accounts are titled, can quietly cost you thousands.
Begin by writing down what you own and what you owe. Include retirement accounts, brokerage accounts, real estate, business interests, and debts. Then ask a simple question: does this picture match what I said I wanted?
Goals change. A promotion, a new grandchild, a health event, or a business sale can all shift your priorities. Sort your goals into three buckets:
Each bucket can carry a different level of risk. Money for security belongs in stable, predictable holdings. Money for legacy, which may not be spent for decades, can usually afford more growth-oriented investments.
After a year of market movement, your portfolio may look quite different from the mix you intended. If stocks have outperformed, you may now hold more risk than you planned. If bonds or cash have lagged, you may be underweight in areas that provide stability.
Rebalancing means trimming what has grown too large and adding to what has fallen behind. It feels counterintuitive, because you are selling some winners, but it keeps your risk level aligned with your goals. A few guidelines:
What you keep matters more than what you earn. Smart asset location can improve after-tax returns without changing your investments at all. In general, tax-inefficient holdings such as taxable bonds and actively managed funds fit best in tax-deferred accounts. Tax-efficient holdings such as broad index funds fit well in taxable accounts. Roth accounts are often a good home for investments with the highest growth potential.
If you hold positions with losses in a taxable account, harvesting those losses before year-end can offset gains elsewhere. Be mindful of the wash-sale rule, which disallows the loss if you buy a substantially identical investment within 30 days before or after the sale.
Wealth that isn’t protected is wealth at risk. Take a fresh look at:
Wills, trusts, powers of attorney, and healthcare directives should be reviewed after any major life event and at least every three to five years. Just as important, check your beneficiary designations. Retirement accounts and life insurance policies generally pass according to the beneficiary form, not your will. An outdated form, naming a former spouse, for example, can override your intentions entirely.
If charity is part of your plan, there are efficient ways to do it. Donating appreciated securities rather than cash can avoid capital gains tax while still providing a deduction if you itemize. A donor-advised fund lets you bunch several years of giving into one tax year and distribute the gifts to charities over time. Those age 70½ and older can also give directly from an IRA to a qualified charity through a qualified charitable distribution.
The biggest threat to long-term wealth is often emotional decision-making. Selling in a panic, chasing performance, and abandoning a plan after a rough quarter are costly habits. A written investment policy, one page stating your goals, your target allocation, and the rules for when you will rebalance, can keep you steady when markets are not.
Wealth management is a continuous process, not a one-time event. A thoughtful fall review puts you in control heading into the new year. If you would like help turning this checklist into a personalized plan, reach out to our team to schedule a complimentary review.
This content is for educational purposes only and is not individualized investment, tax, or legal advice. Please consult a qualified professional about your situation.
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