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It is hard to believe, but 2026 is half over, and despite the volatility we’ve experienced in the markets, the major indexes are near record highs.
We began this year with a few columns about getting a handle on your finances. Maybe you have, or maybe you are working on it, or maybe it just got lost in the shuffle. Regardless, now is a perfect time to check on those goals as we prepare for the second half of the year.
A suitable place to start is with your 2025 taxes. By now you have most likely filed them, although some may have an extension until Oct. 15. If you received a large refund, consider reducing your withholding. If you had to pay additional taxes when you filed, now is an appropriate time to increase your withholding and look at ways to reduce your tax burden in 2026.
You could sell positions in your taxable accounts for which you have losses. You can use those losses to offset any capital gains you have this year, and if your losses exceed your gains, you can write off the losses against ordinary income, up to $3,000 per year.
Check your retirement plans. How are you doing on your retirement savings goals? If you are contributing the maximum to your employer’s plan, now may be an appropriate time to consider making contributions to an IRA. Depending on your personal circumstances, a Roth IRA might make sense too.
Increasingly, our health insurance costs are tied to our overall health. The beginning of the second half of the year is a great time to go for a physical. Many health insurance plans allow one check-up per year.
With the data from the first half of the year available to you, look at how and where you spent your money. If you have outstanding debt, have you been able to pay some of it down? Consider your spending and look for places to cut.
Maybe one of your goals for 2026 was to build your emergency fund. If so, have you made progress? Once you have three to six months of expenses tucked away in a savings account or similar vehicle, you can deploy future savings to paying down debt, retirement savings or investing.
If you are saving for college education, check your progress against your goal. Many colleges and universities will have announced their tuition rates for the fall. Check to see if your estimates are realistic. Review your asset allocation for those accounts to make sure the risk you are taking matches up with the timeframe/age of your prospective student.
Maybe you had some shorter-term items you were saving for in the first half of the year, such as a car or a vacation. If you’ve met those goals, consider deploying those savings dollars to your emergency fund, paying down debt or investing.
If you have paid off a loan, such as a car loan, consider continuing to make those payments to a separate savings account to save for the next time you need a new car. This will change the dynamic from borrowing for the purchase to using dollars you’ve already saved.
Finally, work on putting a system in place to guide you in your financial reviews, and address areas of weakness. For example, if you have no idea how you spend your money, consider using an app or program to help you track it.
As always, financial planning and management can seem daunting and overwhelming. Concentrate on making small, measurable steps each month. You might be amazed at how quickly you are able to make meaningful changes to your financial life.
Important Disclosure:
Alan Alderfer is a Partner, Managing Director at Beacon Pointe Advisors LLC. The information contained in this article is for general informational purposes only. Opinions referenced are as of the publication date and may be modified due to changes in the market or economic conditions and may not necessarily come to pass. Past performance is not a guarantee of future results. Beacon Pointe has exercised all reasonable professional care in preparing this information. The information has been obtained from sources we believe to be reliable; however, Beacon Pointe has not independently verified or attested to the accuracy or authenticity of the information. The discussions, outlook, and viewpoints featured are not intended to be investment advice and do not consider specific investment objectives or risk tolerance you may have. All investments involve risks, including the loss of principal. Consult your financial professional for guidance specific to your circumstances.
