Maximizing Mid-Year Momentum: Tactical Tax and Retirement Moves for Roseville’s High-Net-Worth Investors

July marks a natural checkpoint for reviewing financial decisions before year-end deadlines begin to accumulate. By mid-year, you’ll have a clearer picture of income, investment activity, and tax exposure than in January.

Waiting until November or December to revisit tax planning can leave fewer choices available. Markets move, business income fluctuates, and certain options or planning opportunities become more difficult to implement as the calendar winds down.

This article from Bulman Wealth Group discusses key tactical tax and retirement moves to consider midway through the year.

What Tactical Tax Moves Are Worth Reviewing Mid-Year?

For higher-income households, mid-year tax reviews typically focus on capital gains management, account positioning, deferred compensation elections, and business-owner tax opportunities while there’s still time to make adjustments before year-end.

Portfolio Harvesting and Capital Gains Reviews

Portfolio harvesting involves reviewing investment holdings for realized gains, unrealized gains, and unrealized losses that may affect taxes. 

By July, evaluate how many gains have already been recognized during the year and identify positions that may create opportunities for tax-loss harvesting. Realized losses can sometimes offset realized gains, reducing taxable income generated by investment activity.

Rather than making decisions during the final few weeks of the year, mid-year reviews give you more time to evaluate market conditions and determine whether portfolio adjustments remain appropriate.

Another area worth reviewing involves concentrated positions that have appreciated significantly. While selling appreciated assets may trigger taxes, delaying a review can sometimes reduce flexibility when planning around future distributions or charitable giving objectives.

Asset Location Reviews

Asset location refers to where investments are held rather than which investments are owned.

Many households accumulate a mixture of taxable brokerage accounts, retirement plans, Roth accounts, and other investment vehicles over time. Reviewing whether investments remain in the most appropriate accounts can be worthwhile.

For example, investments that generate high taxable income may be better placed in a tax-advantaged account. A mid-year review can assess whether account placement continues to make sense given current tax circumstances and future retirement objectives.

This analysis is incorporated into a Bulman Wealth Group fee-only financial plan in Roseville, which evaluates the interaction of taxes, investments, and future withdrawals.

“Mid-year is one of the few times investors can review both realized gains and unrealized losses while there is still flexibility to make adjustments before year-end. Asset location deserves the same attention because where an investment is held can be just as relevant as the investment itself.” — Taran Pannu, NSSA®

Executive and Business Owner Tax Opportunities

Corporate executives and business owners frequently face planning considerations that extend beyond salary and bonus income.

For executives, Non-Qualified Deferred Compensation plans deserve periodic review. Distribution elections made years earlier may no longer correspond with retirement timelines, anticipated income levels, or future tax brackets. Reviewing deferred compensation arrangements during the middle of the year allows you to revisit assumptions before retirement draws closer.

If you’re a business owner, you face a different set of decisions. California’s Pass-Through Entity tax election remains an important topic for many seeking relief from federal SALT deduction limitations. Mid-year can be an appropriate time to review projected business income and evaluate whether a PTE election still makes sense under current circumstances.

Estimated tax payments also deserve attention. By summer, revenue trends and profitability are usually becoming clearer, providing additional insight into potential tax obligations before year-end receipts peak.

Business owners may also benefit from revisiting their retirement plan contribution options, including employer-sponsored plans that allow larger contributions than traditional workplace plans.

“For executives and business owners, tax planning is rarely about a single decision. Deferred compensation elections, business income, retirement contributions, and estimated taxes all interact with one another and deserve periodic review.” — Taran Pannu, NSSA®

What Retirement Moves Should High-Net-Worth Investors Consider Mid-Year?

Retirement reviews often focus on future income coordination, healthcare expenses, and withdrawal planning before retirement arrives.

Retirement Income and Tax Coordination

Many spend years accumulating assets but devote less attention to how those assets will eventually be distributed.

Mid-year reviews can examine future income sources such as Social Security, pensions, retirement accounts, taxable investments, and Roth assets. Looking at these sources collectively can reveal opportunities to reduce future income stacking and potentially avoid unintended tax consequences.

If you’re approaching the age to start taking Required Minimum Distributions (RMDs), take time to review your future withdrawal requirements well in advance of when you actually begin.

A discussion of Roth conversions may be beneficial for your retirement planning in Roseville, CA. While conversions may not suit everyone, lower-income years, market downturns, or transitional retirement periods could present valuable planning opportunities.

Healthcare and Long-Term Care Planning

Healthcare expenses are one of the largest unknowns facing retirees. Medicare covers many healthcare costs, but deductibles, premiums, prescription expenses, and supplemental coverage can still lead to substantial out-of-pocket spending. California residents also face healthcare costs that frequently exceed national averages.

Long-term care deserves special attention because traditional Medicare generally does not cover extended custodial care needs. Funding these expenses may involve insurance products, investment assets, retirement income sources, or a combination of several resources.

Families are increasingly discussing caregiving responsibilities, housing arrangements, and healthcare funding long before a medical event occurs. Those conversations are easier when options remain available, rather than during a period of crisis.

“One of the most common issues we see is that taxes, healthcare expenses, and retirement income are reviewed separately. Those decisions tend to work much better when they’re evaluated together rather than one at a time.” — Taran Pannu, NSSA®

Reviewing the Bigger Picture

Taxes and retirement decisions are rarely independent of one another. Investment accounts, healthcare expenses, estate planning documents, charitable intentions, retirement income sources, and family preferences often overlap. Analyzing each area together for your financial planning in Roseville can uncover gaps that are not immediately obvious when each topic is evaluated separately.

Bulman Wealth Group’s Five Points of the Financial Compass integrates all aspects of your finances into one cohesive plan, including income, taxes, healthcare, estate planning, and investments. Mid-year is an effective time to revisit those areas before year-end activity begins competing for attention.

Consider Bulman Wealth Group for Your Wealth Management in Roseville

Are you struggling to manage all the various aspects of your financial life? 

The Bulman Wealth Group works with executives, business owners, retirees, and pre-retirees throughout California and across the country. Our team has decades of experience, and a Bulman Wealth Group financial advisor in Roseville, California, can help you evaluate key decisions through a thoughtful and educational process.

Mid-year provides an excellent window to reassess assumptions and revisit decisions before the fourth quarter arrives.

Reach out to us today to revisit your current plan and discuss how recent developments may have affected your situation.

FAQs

What are some retirement tax benefits California retirees should review before year-end?

Common areas include Roth conversion opportunities, charitable giving strategies, capital gains management, retirement account withdrawals, and coordination between different income sources. The impact varies based on individual circumstances.

Why is mid-year a good time to revisit retirement decisions?

By the middle of the year, income trends, investment activity, and business results are usually clearer. This provides more information while still leaving time to evaluate potential adjustments.

How does long-term care planning in California fit into a retirement plan?

Healthcare costs can represent a significant retirement expense. Reviewing potential care needs, funding sources, insurance options, and family considerations can help you evaluate future obligations.

What should I bring to a mid-year financial review?

Recent tax returns, investment statements, retirement account balances, income information, estate documents, and healthcare coverage details can all contribute to a more productive discussion.