Mid-Year Financial Tune-Up: 5 Key Moves for Californians in 2025

As we head into the second half of 2025, you may be taking a closer look at your financial picture—especially with recent market swings and rising living costs across California. Just like a routine health check, a mid-year financial review can help you stay on track.

Whether you’re nearing retirement or already living it, a quick tune-up to your retirement planning in California can go a long way toward maintaining momentum and supporting the financial confidence you deserve.

This blog from Bulman Wealth Group highlights five timely steps to consider as you fine-tune your strategy for the rest of the year.

1. Review Your Retirement Savings

The first half of 2025 has seen significant market volatility, inflation pressures, and shifting interest rates. If you haven’t reviewed your retirement savings recently, now is the time.

Check whether your contributions are on track, especially if you’re still working. Are you making the most of catch-up contributions or adjusting for higher living costs? If you’re already retired, evaluate how market performance has affected your portfolio balance. Has your withdrawal rate changed? Have your expenses crept up?

If you’re self-employed, consider whether you’re taking full advantage of SEP IRAs, deductible IRA contributions, or a Solo 401(k) if eligible. These tools can boost retirement savings and reduce taxable income.

Minor shifts now, such as adjusting automatic contributions, rebalancing your investments, or reconsidering asset allocation, can help your strategy remain resilient through year-end and beyond. A Bulman Wealth Group advisor can assist you in reviewing your progress and recommend necessary changes.

2. Assess California’s Retirement Tax Benefits

Tax planning shouldn’t wait until December. Mid-year is a smart time to review how tax law changes and income shifts may affect your retirement strategy, especially in a high-tax state like California.

California doesn’t tax Social Security benefits, but most other forms of retirement income—including traditional IRA and 401(k) withdrawals—are fully taxable at the state level. This makes it even more important to plan your distributions carefully.

If you’ve sold property, launched a side business, or changed your income sources this year, you may be in a different bracket than expected. Californians with significant capital gains or rental income should also keep an eye on thresholds that affect tax liability and deductions.

This is the time to evaluate how to time withdrawals, manage gains, or use available deductions. Doing so can help you make the most of the retirement tax benefits California offers while keeping your tax bill from creeping up at year-end.

3. Evaluate Your Retirement Income Plan

It’s wise to revisit your income strategy at mid-year, especially if you’ve had major life changes, unexpected costs, or market fluctuations. A sustainable income plan should meet today’s needs while staying flexible for the future.

Start by reviewing your income sources. Are you drawing from Social Security, pensions, or retirement accounts in a way that aligns with your spending and tax situation? Consider adjusting your withdrawal order or diversifying sources to better manage taxes and market risk.

A bucket strategy can help segment your savings by time horizon (short-, mid-, and long-term) to avoid selling investments during downturns and maintain access to cash for near-term expenses.

Don’t forget to review your emergency fund as well. Are those savings easily accessible and earning competitive interest? High-yield accounts or money market funds may offer better options today.

If required minimum distributions are on the horizon, consider RMD withdrawal strategies like Roth conversions or early withdrawals in low-income years, especially when paired with eligible deductions. Mid-year provides the perfect opportunity to evaluate your plan, identify weaknesses, and make targeted adjustments for better results.

4. Update Your Estate and Long-Term Care Plan

The middle of the year is an excellent time to review your estate planning documents. Have you updated your will, trust, or powers of attorney? Do your current beneficiary designations reflect your intentions? These are essential parts of estate and legacy planning, especially in California, where probate can add time, cost, and stress to an already difficult situation for loved ones.

If you haven’t established a revocable living trust, it may be worth considering, particularly if you want to avoid probate and maintain privacy. Minor updates now, such as adding transfer-on-death (TOD) designations or confirming that assets are properly titled, can help streamline the transfer of wealth later.

Just as important is reviewing your plan for future health needs. Many overlook how quickly care costs can add up. Long-term care planning in California means accounting for expenses like assisted living, home health aides, or nursing care—none of which are fully covered by Medicare.

Some explore hybrid insurance options that combine life insurance with long-term care benefits, while others carve out a portion of their portfolio specifically for health-related expenses. Whether through insurance or savings, having a strategy helps reduce the burden on loved ones and gives you more flexibility in the future.

5. Partner With a Financial Advisor in California

Financial decisions grow more complex in retirement. From tax rules and income planning to healthcare costs and estate strategies, it’s easy to feel overwhelmed or unsure about your next steps.

That’s where working with an experienced financial advisor in California can make a real difference. An advisor offers more than just investment guidance—they help you develop a coordinated plan that accounts for your investments, income, tax exposure, healthcare goals, and how you want to leave a legacy.

At Bulman Wealth Group, we bring decades of experience helping retirees navigate the real challenges of life in California. Whether you’re working with our Roseville, CA, financial advisor team or our financial advisor Temecula professionals, you’ll find guidance that’s both localized and aligned with your broader financial goals.

From stress-testing your income plan to updating your withdrawal strategy based on market activity, a mid-year financial tune-up with our knowledgeable advisors can help you adapt with more confidence.

Our team focuses on helping clients connect the dots between short-term adjustments and long-term outcomes. If your review reveals opportunities or challenges, we’re here to help you manage them with focus and clarity.

Please contact us today to schedule your consultation.