The September Financial Check-In: Are You on Track Heading into Q4?

September is an important financial planning checkpoint. With three quarters of the year nearly complete, you have a much clearer picture of your income, investments, business performance and tax situation than you did in January. More importantly, there is still time to make meaningful adjustments before December 31.

For high-net-worth individuals and business owners, a Q3 financial check-in can help identify opportunities, uncover potential problems and establish priorities for the final months of the year.

Compare Your Income With Your Original Expectations

Start by looking at year-to-date income and what you expect to earn during Q4. Business growth, bonuses, investment gains, stock compensation, real estate income or other financial events may have changed your situation considerably.

If income is running higher or lower than projected, revisit your estimated tax liability. This can help determine whether withholding or estimated payments need to be adjusted while also identifying potential year-end tax planning opportunities.

September is also a good time to evaluate several other areas of your financial life:

• Portfolio positioning: Has market performance pushed your asset allocation away from its intended targets? Consider whether rebalancing or tax-loss harvesting opportunities deserve attention.
• Retirement contributions: Review contributions to workplace and business retirement plans and determine whether you are on pace to meet your goals.
• Cash and liquidity: Make sure you have sufficient liquidity for taxes, upcoming purchases, business needs and other anticipated expenses.
• Estate planning: Consider whether changes involving your family, assets or business warrant updates to beneficiaries or conversations with your estate planning attorney.
• Major financial goals: Revisit the objectives you established earlier in the year and determine whether your priorities have changed.

Give Yourself Time to Plan

One of the biggest advantages of conducting this review in September is flexibility. Waiting until late December can leave little time to coordinate decisions among your financial advisor, CPA, attorney and other professionals.

For business owners, Q4 may bring additional decisions involving retirement plan contributions, capital expenditures, compensation and distributions. Investors may need to consider realized gains and losses, charitable giving or significant liquidity events. Families may also want to address gifting or other estate planning strategies before year-end.

The purpose of a September check-in is not to make financial moves simply because the calendar is changing. It is to determine whether your current strategy still reflects your circumstances and goals.

At Illumination Wealth, we help clients connect investment management, tax planning, business strategy and personal financial goals throughout the year. A thoughtful Q3 review can provide the clarity needed to make Q4 decisions proactively rather than rushing to address them in December. Contact us today to get started.