We’re halfway through 2025. If life has kept you focused on work, family, or simply navigating the year’s financial headlines, you’re not alone. But before the rest of the year rushes by, this is a great time to pause and give your portfolio a thoughtful check-in.
Here’s a five-question framework I use with clients to stay grounded, tax-smart, and aligned with what actually matters.
1. Why am I investing? Clarify your purpose and time horizon.
Let’s start with the “why.” What’s the purpose of your portfolio? Are you investing for retirement? College expenses? A future sabbatical or second act?
The answer matters. If your goals are long-term, your investment strategy will likely focus on growth and compounding. But if your goal is short-term—like buying a home next year—you’ll need a more conservative, stability-focused approach.
And even if your primary goal is retirement, it helps to get more specific: When will you need to start drawing from your portfolio? And how much will you need it to generate?
Refreshing your financial goals is the first step in making sure your portfolio is doing its job.
👉 Mid-year action: Revisit your financial goals and time horizons. Are you still on track? Do your investments match the timeline of the goals they’re meant to support?
2. What should I invest in? Build a resilient mix of asset classes.
Your Mix Matters. Think of your portfolio like a well-balanced meal. Too much of one thing—say, all tech stocks or U.S. growth—might feel exciting, but it’s like bringing only desserts to a dinner party. Tasty now… but not exactly nourishing over the long haul.
Asset allocation is the foundation of your investment plan. It’s the mix of stocks, bonds, and other assets that spreads risk and drives long-term returns. The goal isn’t to own everything—it’s to own the right combination that reflects your goals, your time horizon, and your comfort with volatility.
Many portfolios today are heavily tilted toward U.S. stocks—especially the big-name tech companies—because that’s what feels familiar. But don’t overlook the rest of the world. International and emerging market stocks may be positioned for stronger growth in the years ahead, and including them can improve your portfolio’s long-term potential and resilience.
👉 Mid-year action: Check your allocation mix. Are you diversified across asset classes, sectors, and geographies—or has your portfolio become too reliant on one corner of the market?
3. How should I build the portfolio? Choose tools that are efficient, low-cost, and intentional.
It’s not just what you invest in—it’s how you invest. Studies consistently show that investment costs are one of the strongest predictors of long-term performance. The less you pay in fees and taxes, the more of your returns you keep. That’s why I often recommend index-based ETFs or mutual funds: low cost, tax-efficient, and easy to understand. They don’t try to beat the market—they quietly help you own it—and over time, that can add up.
👉 Mid-year action: Review what you’re holding. Are your investments cost-efficient, tax-aware, and aligned with your asset allocation?
4. Where should I place my investments? Put the right assets in the right accounts.
You might already have the right investments—but are they in the right places? Asset location is all about minimizing the tax drag on your returns by being strategic about which types of investments live in which types of accounts. It’s one of those quiet, compounding strategies that can make a meaningful difference over time.
Here’s how to think about it:
- Taxable accounts are well-suited for equities—especially those that generate qualified dividends or long-term capital gains. These are taxed at lower rates, and if the market dips, you can harvest losses to offset gains or even ordinary income.
- Traditional IRAs and 401(k)s are great homes for tax-inefficient investments—like bonds that generate interest taxed as ordinary income, REITs with non-qualified distributions, or actively managed funds with high turnover. These accounts shield you from annual taxes on income and capital gains distributions.
- Roth accounts are the crown jewel for growth-focused investments. Since withdrawals are tax-free in retirement, they’re an ideal place for your highest-expected-return assets.
Even a well-allocated portfolio can underperform if it’s not tax-smart. Location isn’t glamorous—but it’s a subtle way to keep more of what you earn.
👉Mid-year action: Review how your investments are spread across your accounts. Could a few smart shifts reduce your current or future tax bill?
5. When should I make changes? Use rebalancing to adjust with discipline—not emotion.
Your portfolio is not a crockpot. You can’t just set it and forget it forever. Over time, some investments grow faster than others. That’s a good thing—until your portfolio ends up tilted too heavily toward one area, like tech stocks or U.S. large-cap growth. That’s where rebalancing comes in.
Rebalancing means trimming what’s outgrown its target and reinvesting in areas that have lagged—not because you're chasing performance, but because you're sticking to your long-term plan.
It’s also a great moment to check for tax opportunities. Can you harvest some gains or realize losses in taxable accounts? Think of it like tidying your financial closet: no need for a full renovation, just a thoughtful refresh to keep things in order.
👉 Mid-year action: Review your current allocation. Have certain positions run too hot? Are there areas you’ve been ignoring? Trim where needed, harvest gains or losses, and reinvest intentionally—not reactively.
Final Thought: Stay Grounded in What Matters
The headlines will always change—AI booms, rate cuts, market dips—but the fundamentals of good investing rarely do.
This five-question check-in isn’t about reacting to market noise. It’s about staying anchored to your goals, being intentional with your decisions, and making sure your portfolio is still serving the life you’re building—today and in the future. Sometimes it means making a few smart shifts. Other times, it’s just reassurance that your plan is working as intended.
A mid-year check-in is a chance to pause, reflect, and realign if needed. Not out of fear—but out of purpose.
Need help or have questions? Feel free to reach out.
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