Mid-Year Investment Review: Your Portfolio Checkup
As you cross the halfway mark of the year, it’s time to pause, reflect, and recalibrate your investment strategy. A mid-year investment review helps you measure progress, manage risk, and seize new opportunities before year-end.
1. Evaluate Performance Against Benchmarks
• Gather your portfolio statements and note total returns year to date (YTD).
• Compare each holding’s YTD return to its relevant benchmark (e.g., S&P 500 for large-cap equities, Bloomberg U.S. Aggregate for bonds).
• Highlight top performers, laggards, and those meeting expectations to inform your adjustments.
2. Reassess Asset Allocation
Your target mix—stocks, bonds, cash, alternatives—should reflect your goals and risk tolerance. Over six months, market moves can skew this balance.
Asset Class Target Allocation Actual Allocation Variance
U.S. Equities 50% 55% +5%
International 20% 18% –2%
Fixed Income 25% 22% –3%
Cash/Alternatives 5% 5% 0%
Use this snapshot to decide where to trim or add.
3. Rebalance Your Portfolio
• Sell holdings that exceed target weights and redeploy proceeds into underweighted assets.
• Consider transaction costs and tax consequences when selling taxable investments.
• Automate future rebalances with your brokerage or through dollar-cost averaging to maintain discipline.
4. Review Fees and Expenses
High fees can erode returns over time.
• Audit expense ratios on your ETFs and mutual funds.
• Shop for lower-cost share classes or index alternatives where performance is similar.
• Negotiate advisory or platform fees, especially if your account size has grown.
5. Revisit Your Risk Tolerance
Life changes—career shifts, family milestones, or market volatility—can alter your comfort with risk.
• Reassess your emotional reaction to this year’s market swings.
• Adjust allocations if needed: dial back equities if you’re uneasy, or consider a modest increase in growth assets if you have capacity for higher volatility.
6. Incorporate Tax Optimization
A smart mid-year review integrates tax planning:
• Harvest losses in taxable accounts to offset gains.
• Check if you’re on track for capital-gain distributions from funds—consider swapping into similar tax-efficient ETFs.
• Confirm you’ve maxed your tax-advantaged accounts (401(k), IRA) by mid-year to benefit from compounding.
7. Align With Your Goals and Market Outlook
• Reconfirm your investment horizon: Are you saving for college, retirement, or a large purchase?
• Adjust your strategy for anticipated market drivers—interest-rate policy, earnings seasons, or geopolitical shifts.
• Set clear targets for the second half: target return, volatility threshold, or cash-reserve level.
Next Steps
1. Block 60 minutes this week for your detailed review.
2. Use portfolio-tracking tools (e.g., Personal Capital, Morningstar) to automate benchmarking and alerts.
3. Schedule a call with your financial advisor to validate changes and discuss any new opportunities.
By following these steps now, you’ll close Q3 confident that your investments remain aligned with your objectives and risk profile. For a holistic financial checkup, pair this review with your mid-year tax planning and savings goals—setting the stage for a strong finish to the year. here to add text.