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Mid-Year Financial Health Checklist for High Net Worth Investors

In a recent appearance on WGN’s program "Your Money Matters," Tiffany Irving, a Wealth Advisor at Mesirow, stressed the importance of conducting a mid-year financial review. With the stock market reaching new heights amidst ongoing economic uncertainty, it's crucial for high net worth investors to assess and adjust their financial strategies accordingly. Here's a comprehensive overview of her recommendations to enhance financial well-being halfway through the year.

1. Reviewing Cash Flow and Budget

The first step Irving suggests is to revisit your cash flow and budget. This can be accomplished by evaluating your monthly income and expenses, ensuring they align with your budgetary goals. Following the classic 50/30/20 rule—allocating 50% for needs, 30% for wants, and 20% for savings—can be exceptionally beneficial. Tools such as Quicken or mobile budgeting applications can help enhance visibility and control over your finances.

"Many clients struggle to articulate what their monthly expenditure looks like," Irving noted. Tracking these figures can lead to better financial clarity.

2. Portfolio Assessment for Retirement Accounts

Irving emphasizes that simply contributing to retirement accounts isn’t enough. High net worth investors should ensure their contributions are actively managed and allocated appropriately, rather than merely being deposited into savings. She advocates for maxing out 401(k) plans to capture any employer matching contributions. "Don't fall into the trap of housing your funds in low-yield investments. Proactive management can significantly enhance your returns," she advised.

3. Making Use of Idle Cash

Having excess cash sitting idle in a checking account can undercut financial potential. Irving encourages investors to find better uses for this money. Investing in high-yield savings accounts, CDs, or increasing contributions to retirement funds can leverage that money effectively. "Having cash without a strategy is a missed opportunity," she stressed.

4. Legal and Estate Planning Updates

An essential, yet often neglected aspect of financial health is estate planning. Irving recommends regular reviews of estate planning documents and designations to ensure they still meet current needs. Key areas to review include:

• - Beneficiary designations and account titles
• - Powers of attorney for health and finance
• - Trusts and transfer-on-death instruments
• - Access to digital assets, including online accounts and cryptocurrencies

Even if initial plans are in place, periodic evaluations help incorporate any life changes effectively.

5. Simplifying the Check-Up Process

Recognizing the daunting nature of a mid-year financial review, Irving advises investors to break down their objectives into manageable steps. Setting smaller monthly goals can ease the pressure and promote steady progress. "You don't have to tackle everything at once. Select a discrete goal for July, then proceed with another for August," she suggested. This approach can yield long-term peace of mind, all while fostering intentional financial planning.

Conclusion

Mesirow's wealth management services are built upon a foundation of personalized financial planning and careful investment strategies. Their Wealth Advisors dedicate themselves to nurturing client relationships across generations, adapting strategies as client priorities evolve. For more information about how Mesirow can assist in your financial journey, visit mesirow.com/wealth.

About Mesirow

Founded in 1937, Mesirow is an esteemed independent, employee-owned financial services firm based in Chicago. The firm’s approach is tailored to individual client needs while also prioritizing community and social responsibility. Mesirow’s capabilities encompass private capital, currency, investment banking, and advisory services, continually striving to enhance financial outcomes for clients.

With a strong reputation as a favorable workplace, Mesirow has been repeatedly recognized by Crain's Chicago Business and Barron's, solidifying its status as a trusted financial partner. To learn more about Mesirow, follow them on LinkedIn and subscribe to their quarterly newsletter, Spark.