As we close out summer and look toward the remainder of 2025, now is an ideal time to pause, review your financial picture, and make adjustments where needed. Markets have been active, interest rate expectations are shifting, and personal circumstances often evolve as the year goes on. By taking a thoughtful look at your investments and planning strategies today, you can head into year-end with clarity and confidence.
Portfolio Allocations & Risk
The first half of 2025 brought market swings that may have nudged your portfolio out of balance. Left unattended, these shifts can gradually increase your risk exposure or leave you underinvested in areas of opportunity. That’s why we proactively rebalance portfolios throughout the year, ensuring that allocations remain aligned with your goals and tolerance for risk. At present, our positioning remains tilted toward U.S. markets and technology sectors—areas that continue to show resilience and long-term growth potential.
Year-End Tax Planning
Mid-year is also a strategic time to address tax planning. Retirement account contributions—whether to a 401(k), IRA, Roth IRA, or Health Savings Account—are worth reviewing now to make sure you’re on pace. For those approaching or already in retirement, Required Minimum Distributions (RMDs) deserve close attention to avoid costly penalties. We also evaluate Roth conversions carefully. While these can be powerful tools in certain situations, they are often overhyped and don’t always fit every client’s broader tax strategy. Finally, a check-in on tax withholding and estimated payments at this stage of the year can help prevent unwanted surprises when filing season arrives.
The Case for Account Consolidation
Many households accumulate multiple investment accounts over time—old 401(k)s, brokerage accounts, and IRAs scattered across different institutions. Consolidating these accounts can bring significant benefits. It reduces paperwork and complexity, but more importantly, it ensures that your assets are managed together in a coordinated way. That integration allows us to create a more efficient investment strategy and maximize tax benefits across your portfolio.
Cash & Interest Rates
Cash has taken on a larger role in many households recently, with high-yield savings accounts and money markets offering returns that would have been unthinkable just a few years ago. However, with the Federal Reserve widely expected to begin cutting rates in September, these elevated yields may not last. While it makes sense to take advantage of today’s rates while they remain, it’s also important to review whether excess cash is best kept on the sidelines or should be reallocated toward long-term investment goals.
Planning for Life Transitions
Financial planning is about more than just markets and returns—it’s about aligning your money with your life. Retirement, healthcare decisions, college planning, new grandchildren, inheritances, or career changes all create ripple effects for your financial plan. Sharing updates about these transitions mid-year allows us to adjust your investment strategy, tax planning, and estate planning proactively, rather than reactively.
Looking Ahead
The second half of the year often passes quickly, filled with back-to-school schedules, holidays, and year-end deadlines. By taking the time now to review your portfolio, tax strategies, and broader life changes, you can set yourself up for a smoother and more productive close to 2025.
If you’ve experienced a life change, want to review your allocations, or need to revisit tax planning before the fall, now is the perfect time to reach out. Together, we can ensure your plan remains on track—today and for the years ahead.
Canty Financial Management
Bill Canty, CFP®, CPA, Financial Planner
Ed Canty, CFP®, Financial Planner
Joe Canty, CFP®, Financial Planner
Tina Alteri, CPA, Tax Advisor
Maureen Walsh, EA, Tax Advisor
