Mid-Year Financial Check-In: What Should You Actually Be Reviewing?

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Half the year is behind you. Before the summer fully takes over, there’s one question worth asking — is your financial plan still pointing where you think it is?

Pause. Evaluate. Adjust.

January resolutions are easy to make. June is where they get honest.

By now, the market has moved, your income may have shifted, life may have handed you something unexpected — and the financial plan you started the year with might be quietly drifting off course without you realizing it. A mid-year check-in isn’t about panic. It’s about clarity.

Most people assume a financial review means staring at spreadsheets and recalculating budgets. But a real mid-year reset is something more purposeful: it’s a deliberate pause to ask whether your money is still working toward the life you actually want.

Here are the six areas worth looking at right now — and the questions that matter most inside each one.

Retirement planning is not meant to stay static. A mid-year check-in is a natural moment to revisit where you stand.

A Financial plan isn’t a destination, it’s a direction.  Mid’year is when you check if you’re still headed there.

RWM Financial Group

 

1.  Are Your Retirement Contributions Still on Track?

This is the one most people intend to address and never quite get around to. If you set a contribution rate at the start of the year, July is the right moment to check the math. Are you on pace to hit your annual maximum? Have you taken advantage of any catch-up contributions if you’re 50 or older?

Contribution limits are adjusted periodically by the IRS and may change from year to year. Before making contribution decisions, review the current IRS limits for 401(k)s, IRAs, and catch-up contributions or speak with your financial professional to determine the limits that apply to your situation. ¹

One question worth asking your advisor: Has your income changed enough in 2026 that your tax strategy around retirement accounts should shift?

  • Check year-to-date contributions against your annual target
  • Confirm your beneficiary designations are still current
  • Review whether a Roth conversion makes sense given current income
  • If you have a 401(k) match available, make sure you’re capturing all of it

2.  Does Your Emergency Fund Still Match Your Life?

Three to six months of expenses is the rule of thumb — but whose expenses? The version of your life from January, or the version you’re actually living right now?

If your rent went up, you added a car payment, or your household situation changed, your emergency fund target may have shifted without you updating the math. A fund that felt adequate in January might fall short today. And in the opposite direction: if you’ve been disciplined about saving this year, you may have more than you need sitting in a low-yield savings account — money that could be working harder elsewhere.

3–6

Months of expenses is the standard emergency fund target²
 

47%

of Americans cannot cover a $1,000 unexpected expense from savings³
 

2x

Self-employed individuals should target double the standard reserve

High-yield savings accounts and money market funds have become more attractive options in recent years. If your emergency fund is sitting in a traditional savings account earning close to nothing, now is a good time to reconsider where that liquidity lives.

Your emergency fund should reflect the life you’re living now, not the one you planned in January.

RWM Financial Group

3.  Is Your Debt Working Against Your Plan?

Debt isn’t inherently a problem — but unexamined debt is. The mid-year mark is a useful moment to look at the full picture: what you owe, at what rates, and whether your current payoff approach is still the right one.

Interest rates have not become irrelevant in 2026. If you’re carrying balances on variable-rate credit cards or have an adjustable-rate loan, it’s worth reviewing whether refinancing or consolidation makes sense. On the other side of the ledger, if you’ve been aggressively paying down low-interest debt while neglecting higher-yield investment opportunities, that trade-off deserves a second look.

  • List all outstanding debts with current interest rates
  • Identify whether any variable rates have changed since January
  • Evaluate refinancing opportunities for mortgages or student loans
  • Confirm you’re not carrying high-interest credit card balances month to month

One framework worth discussing with your advisor: the difference between wealth-building debt (a mortgage, a business loan at favorable terms) and wealth-eroding debt (high-rate consumer credit). Not all debt deserves the same urgency.

4.  Does Your Investment Risk Still Match Your Goals?

Markets don’t ask your permission before they move. If the first half of 2026 shifted your portfolio’s composition — even by a few percentage points — your actual risk exposure may no longer match the level you agreed to when you built your investment strategy.

This is called portfolio drift, and it’s entirely normal. But left unaddressed, it can mean you’re taking on more risk than you intended heading into a volatile second half of the year — or, conversely, that you’ve become too conservative at exactly the wrong time.

Mid-year is also a natural moment to revisit your time horizon. If retirement is now three years closer than when you last reviewed your allocation, that matters. The question isn’t just “how has the portfolio performed?” — it’s “is the portfolio still built for the version of my future I’m actually planning for?”

  • Review current asset allocation vs. your target allocation
  • Assess whether rebalancing is warranted
  • Revisit your risk tolerance — not just your risk capacity, but your comfort level
  • Discuss any concentrated positions that may have grown disproportionately

Portfolio drift is silent.  You don’t feel it happening, until it matters.

RWM Financial Group

5.  Business Owners: Are You Using the Tools Available to You?

If you own a business, the mid-year mark carries additional weight. This is the last realistic window before year-end tax planning becomes reactive rather than strategic.

Business owners have access to retirement vehicles that most employees don’t — Solo 401(k)s, SEP-IRAs, and SIMPLE IRAs, each with contribution structures that can dramatically reduce taxable income when used correctly. The question isn’t just whether you have these accounts open. It’s whether you’re maximizing them given what your business has earned in the first half of the year.

July is also a useful moment to revisit your entity structure, your estimated quarterly tax payments, and whether any major purchases or investments planned for Q4 should be moved up into Q3 for tax positioning purposes.

  • Review Q1–Q2 business revenue against full-year projections
  • Confirm estimated quarterly tax payments are accurate and on schedule
  • Evaluate Solo 401(k) or SEP-IRA contribution capacity for the year
  • Discuss any major capital expenditures with your advisor before Q4
  • Review your business entity structure — is it still optimized for your income level?

6.  Has Life Changed Since January?

This is the section most financial checklists skip — and it may be the most important one.

Financial plans aren’t made in a vacuum. They’re built around the life you’re living. And life has a way of changing in ways that don’t automatically trigger a call to your advisor. A marriage, a divorce, a new child, a parent who needs support, a health diagnosis, a new job, a relocation, an inheritance — all of these are inflection points that ripple through your financial picture in ways that aren’t always immediately obvious.

If something significant has happened in your life between January and today, your plan deserves a review. Not because something is wrong — but because a good plan is one that fits your actual circumstances, not your circumstances from six months ago.

  • Any change in marital status or family composition
  • A job change, promotion, or shift in income
  • A major health event or change in insurance coverage
  • An inheritance, gift, or significant windfall
  • A move to a new state (tax implications vary significantly)
  • Any beneficiary designations that may need updating

A plan that doesn’t account for the life you’re actually living isn’t really a plan, it’s a guess.

RWM Financial Group

Ready to Do Your Mid-Year Review?

You don’t need to have all the answers before we talk. That’s what the conversation is for. Schedule a mid-year review with the RWM team — and walk away with a clear picture of where you stand and what, if anything, needs to shift.

Schedule a Review

 

Sources

¹ Internal Revenue Service (IRS), Retirement Topics — Contribution Limits. Available at: https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500

² Consumer Financial Protection Bureau, Emergency Savings Guidance

³ Bankrate Emergency Savings Report, 2026

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advisory services must be obtained on your own separate from this educational material.

There is no guarantee that the views or strategies discussed are suitable for all investors or will achieve desired results. Investors should consult a financial professional to determine what may be appropriate for their situation.

Savings accounts are FDIC insured up to applicable limits and offer variable rates that may change over time, whereas securities are not FDIC insured and are subject to market risk, including possible loss of principal.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.

Investing in mutual funds involves risk, including possible loss of principal. Fund value will fluctuate with market conditions and it may not achieve its investment objective.

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

 

You Have a Retirement Plan. But Do You Understand It?

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Most people know they have a retirement plan.

Far fewer know how it actually works.

They’re contributing every paycheck. They log in once or twice a year. Maybe they glance at the balance when the market is up.

But understanding your retirement plan goes beyond simply participating in it.

Because having a plan and having a strategy are two very different things.

At RWM Financial Group, one of the biggest things we see during reviews is this: people are often doing the right things… without knowing why they’re doing them. And over time, that disconnect can create missed opportunities, unnecessary risk, and real confusion about whether your plan is truly supporting your goals.

 

1. Your Contribution Rate Matters More Than You Think

A lot of employees choose a contribution percentage once and never revisit it. But life changes — and so should your plan.

Income changes. Goals change. Retirement timelines change. What made sense three years ago may not make sense today. And even increasing your contribution by just 1–2% can make a meaningful long-term difference thanks to compound growth.

The important questions to ask:

  • Are you contributing enough to support your future goals?
  • Are you taking full advantage of your employer match?
  • Are you increasing contributions as your income grows?

 

Retirement planning is not meant to stay static. A mid-year check-in is a natural moment to revisit where you stand.

 

2. Employer Match Is Part of Your Compensation

One of the most overlooked parts of a retirement plan is the employer match — and it’s also one of the most impactful.

Many employees don’t realize they may be leaving money on the table simply by not contributing enough to receive the full match. That match is part of your overall compensation package. Not understanding how it works can mean missing out on significant long-term growth.

A mid-year check-in is a great time to review:

  • What your employer offers and how the match formula works
  • Whether you’re maximizing the match
  • How vesting schedules affect when that money is truly yours
  • How those contributions impact your long-term savings trajectory

“Your employer match is not a bonus. It’s part of your compensation.”

 

3. Investment Allocation Should Align With Your Goals

One of the biggest misconceptions in retirement planning is that choosing investments is a one-time decision.

Your allocation — how your money is divided between stocks, bonds, and other assets — should reflect your age, your timeline, your risk tolerance, and your financial goals. What felt appropriate during one stage of life may feel completely different later. And over time, market performance can drift your allocation away from where it started without you ever noticing.

Many people are invested too aggressively without realizing it. Others may be sitting too conservatively and limiting their long-term growth potential.

During periods of market volatility, understanding why you’re invested a certain way becomes even more important. That’s where education matters — not reacting emotionally, not chasing headlines, but understanding the strategy behind the allocation.

“Plan vs. Strategy: Having an account is a plan. Understanding how it’s built is a strategy.”

 

4. Fees Matter — Even When They Seem Small

Fees inside retirement plans are often misunderstood because they’re not always obvious. They don’t announce themselves — they quietly reduce your returns year after year.

Small percentages may not feel significant in the short term, but over decades they can have a real impact. Even a difference of 0.5% in annual fees can add up to tens of thousands of dollars over a 20–30 year timeline.

That doesn’t mean the lowest-cost option is always the best option. It means understanding:

  • What fees exist inside your plan
  • What services are attached to them
  • Whether the value aligns with the cost

 

Transparency matters. And asking questions about fees should never feel uncomfortable.

“Understanding your fees is part of understanding your future.”

 

5. “Set It and Forget It” Can Become Risky

Automating your retirement contributions is a genuinely good habit. It removes friction and ensures you’re saving consistently.

The problem is when automation becomes a reason to disengage entirely.

Life changes fast:

  • Career changes
  • Family growth
  • Income shifts
  • Economic changes and market cycles

 

Your retirement strategy should evolve alongside those changes. A retirement plan should not feel confusing or distant. You should understand what you own, why you own it, and whether it still aligns with where you want to go.

That’s why regular reviews matter — not because something is “wrong,” but because staying informed helps people make more confident decisions.

“Having a retirement plan is important. Understanding it is where confidence starts.”

 

Mid-Year Is a Good Time to Check In

If you haven’t reviewed your retirement plan recently, this is a good time to start. A few simple questions can go a long way:

  • Am I contributing enough?
  • Am I receiving the full employer match?
  • Do my investments still align with my goals?
  • Do I understand the fees inside my plan?
  • Has anything changed in my life that should change my strategy?

 

You don’t need to have all the answers. But understanding your plan is one of the most important steps toward feeling more confident about your future.

Whether you’re an employee reviewing your personal retirement strategy or a business owner evaluating your company’s plan, the team at RWM Financial Group is here to help guide the conversation.

Schedule a retirement plan review or mid-year check-in to better understand how your current strategy aligns with your goals.

 

 

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advisory services must be obtained on your own separate from this educational material.

 

How Companies Can Ensure Their Plans Align with Employee Goals-And How RWM Financial Group Can Help

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Alright, let’s cut to the chase—everyone wants to feel like they’re part of something meaningful, right? For companies, aligning their big plans with what their employees are aiming for isn’t just a nice-to-have; it’s a must if they want everyone on board, motivated, and ready to go the extra mile (without a grumble). Here’s a laid-back take on how companies can connect their big dreams with their people’s personal goals—and how RWM Financial Group is here to support you, from financial education to setting up 401(k)s that bring everyone closer to their goals.

Keep It Real with Open Communication

Start with good ol’ fashioned honest talk. Regular check-ins, genuine chats about ambitions, and the kind of culture where everyone can throw their ideas on the table make all the difference. Leaders, don’t just nod along—ask employees about what lights their fire! Whether it’s career growth or financial stability, open conversations lay the groundwork for connecting individual goals with company plans. Here at RWM Financial Group, we help companies communicate the importance of financial wellness by offering tailored workshops and one-on-one sessions on topics like retirement savings and 401(k) options.

Get Clear on Shared Goals

If the company’s goals are a mystery, how’s anyone supposed to get excited about them? Lay it out clearly—where’s the company headed, and why? When everyone knows the end game, it’s way easier to see how their own goals fit in. Clear goals aren’t just for big shots at the top; they’re for everyone, so make them simple, relevant, and inspiring. For instance, sharing the company’s commitment to providing a top-notch 401(k) plan can help employees see how their long-term financial goals line up with the organization’s priorities. With RWM Financial Group’s support, companies can set up retirement plans that serve everyone, from seasoned execs to the newest hires.

Give Development a Front Seat

If you want people to stick around and feel pumped, invest in them. We know that financial security is high on the list for most employees, which is why we offer services that encourage financial growth—like educating employees about maximizing their 401(k) contributions or saving for personal goals. These resources can make a big difference in how people feel about their jobs. From small business teams to larger corporations, RWM Financial Group provides tailored support for your unique workforce’s financial future.

Use a Goal-Setting Game Plan

Think frameworks like OKRs or SMART goals. Yeah, they sound a little corporate, but bear with us. These systems give structure to goal-setting and make it easy to see who’s crushing it. Plus, they give everyone a chance to brag (or reflect) on their progress. And just like with career goals, financial goals benefit from structure. We at RWM can help you create a structured 401(k) plan for your employees, enabling them to set, track, and adjust their retirement goals as they grow with your company.

Roll with the Punches

Employees’ goals aren’t carved in stone, and that’s a good thing. New skills, new passions, and sometimes just life mean goals change. Be open to mixing things up—whether it’s remote work, new projects, or different roles. A little flexibility keeps things fresh and lets people feel like they’re growing with the company, not just for it. RWM’s flexible approach to financial planning works the same way: we’re here to make sure your employees’ financial plans grow with them, whether that means updating 401(k) offerings, adjusting contributions, or addressing new financial education needs.

Show Some Love for a Job Well Done

When employees hit a milestone or crush a goal that matters to them (and the company), throw a little celebration! Public recognition, a bonus, or even a well-timed “Thank you!” can work wonders. Financial rewards and benefits—like a robust 401(k) match—are a big part of showing employees they’re valued. At RWM, we can help you set up a 401(k) plan that gives employees a financial boost as they work toward their personal and professional milestones.

Embrace Feedback and Keep It Moving

The road to alignment is paved with feedback—so make it a two-way street. Regular check-ins, team debriefs, and the occasional survey help everyone stay connected and keep strategies relevant. It’s like tuning a car; little tweaks here and there make sure it’s still running smoothly, no matter how long the journey. RWM Financial Group offers feedback loops for your financial plans, too, helping employees and employers review, tweak, and optimize 401(k) plans and other financial resources to keep everyone on track.

Share the Big Picture (Because It Matters!)

Employees don’t just want to clock in and out; they want to see the impact of their work. Tie their goals and contributions back to the company’s purpose—whether it’s creating the next great product, helping customers in meaningful ways, or just making the world a better place. When people see the bigger picture, it makes the day-to-day a whole lot more satisfying. At RWM Financial Group, we believe in building financial stability and growth for your team, which ultimately feeds into a stronger, more motivated company culture. With the right financial tools, like a well-managed 401(k) plan, employees feel more secure about their future—allowing them to focus on their work with confidence.

Aligning company plans with employee goals takes some effort, but the payoff? Worth every bit. By keeping communication open, investing in growth, and celebrating achievements, companies can build a workplace that’s fulfilling for employees and productive for the business. And RWM Financial Group is here to support every step—from helping employees get the most out of their 401(k)s to providing financial education for small businesses and large corporations alike. When everyone’s in sync, working together becomes a lot more fun, and success turns into a team sport.

This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.

End of Year Retirement Plan Checklist: October -December Compliance Guide

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As we approach the final quarter of the year, it’s crucial to stay on top of important retirement plan deadlines to ensure compliance with the U.S. Department of Labor and IRS regulations. From timely deposits to participant notices, adhering to these deadlines will help keep your plan in good standing. Here’s a month-by-month guide to help you navigate the final months of 2024.

OCTOBER: Payroll and Enrollment Checks

Audit Payroll and Plan Deposits

Ensure that all third-quarter payrolls and plan deposit dates comply with the U.S. Department of Labor’s rules. This means verifying the timely deposit of participant contributions and loan repayments to avoid penalties.

Enrollment Follow-Up

Employees who became eligible for your retirement plan between July 1 and September 30 should have received and returned their enrollment forms. If any forms are missing, this is the time to follow up to avoid compliance issues.

Safe Harbor Notices

If you offer a calendar-year safe harbor plan, you must issue the required notices to employees during October or November. These notices are critical as they must be provided within 30–90 days of the beginning of the plan year. Additionally, if your plan includes features like an Eligible Automatic Contribution Agreement (EACA), Qualified Automatic Contribution Agreement (QACA), or Qualified Default Investment Alternative (QDIA), make sure the appropriate notices are distributed during this time.

NOVEMBER: Preparation and Communication

Plan Announcements

Start preparing announcements to educate employees on the advantages of your retirement plan and any upcoming changes that will take effect in January. Communication is key to ensuring employees understand and appreciate their benefits.

Encourage Address Updates

With Form 1099-R for reportable transactions set to be mailed in January, now is a good time to run a campaign encouraging participants to update their mailing addresses to avoid missing documents.

Update Enrollment Materials

Verify that all enrollment materials, fund prospectuses, and other plan-related information provided to employees are current. These materials should reflect any changes in the plan and align with regulatory requirements.

Quarterly Statements

Within 45 days of the end of the last quarter, distribute the quarterly benefit and disclosure statements to plan participants. This should include a detailed breakdown of plan fees and expenses charged to individual accounts during the prior quarter.

Annual Plan Notices

Prepare and distribute any necessary annual plan notices, including 401(k) safe harbor notices, QDIA annual notices, and automatic enrollment/default investment notices. These notices must be sent at least 30 days before the end of the plan year.

DECEMBER: Year-End Preparations

Year-End Compliance Testing

Begin preparing to send year-end payroll and updated census data to the plan’s recordkeeper in January for year-end compliance testing. This is essential for calendar-year plans and ensures that your plan is in line with regulatory testing requirements.

Distribution Options for Terminated Participants

Verify that participants who left the company during the second half of the year have selected a distribution option for their account balance and returned the necessary forms.

Plan Operations Review

Conduct a thorough review of plan operations to identify any possible Employee Retirement Income Security Act (ERISA) or tax-qualification violations. If any issues are discovered, it might be necessary to use an IRS or U.S. Department of Labor self-correction program to remedy them before they become a larger issue.

By following these monthly action items, you can ensure that your retirement plan remains compliant and that participants are well-informed and supported. Staying proactive in the final quarter helps avoid last-minute stress and ensures a smooth transition into the new year.

Unveiling the Hidden Pitfalls of Retirement Planning: A Mission for Financial Maverick

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In the high-stakes world of retirement planning, navigating hidden fees and complex investment structures can feel like flying a jet through a storm without a radar. Much like the iconic pilots of Top Gun, who train to be the best in high-pressure situations, understanding and mastering your financial landscape is a mission that requires precision, skill, and the right team by your side. At the 28th Annual Conference in Durant, Oklahoma, RWM Financial Group took the stage—aviators on, Top Gun music playing—to guide attendees through the hidden pitfalls of retirement planning in their presentation, “Vanishing Assets: The Hidden Pitfalls of Retirement Planning.

Understanding the Roles: Financial Advisor, TPA, and Custodian – Your Financial Wingmen

Just as Maverick relies on his wingmen to execute a flawless mission, your retirement plan relies on key players: the Financial Advisor, Third-Party Administrator (TPA), and Custodian. These roles work together like a well-coordinated flight team. The Financial Advisor, your “Top Gun” pilot, leads the charge by guiding investment decisions, educating participants, and ensuring regulatory compliance. The TPA handles the operational logistics, while the Custodian safeguards your assets. Each plays a critical role in ensuring your retirement mission succeeds without a crash landing.

Hidden Fees: The Financial MiG Threats

In the same way Maverick faces unexpected threats in the sky, hidden fees are the silent MiGs of your retirement plan, capable of chipping away at your wealth without warning. RWM Financial Group emphasized that these hidden costs—whether embedded within investment products, commissions, or referral fees—can undermine your financial altitude. To stay in control, it’s crucial to demand transparency and keep your financial radar sharp, ensuring that every fee is disclosed and accounted for.

Best Practices: Your Flight Manual for a Successful Mission

Just as Top Gun pilots follow their flight manuals to complete each mission, RWM Financial Group recommends following best practices to ensure your retirement plan stays on course. Establishing an Investment Policy Statement, reviewing fee structures regularly, and ensuring that fiduciary duties are met are essential steps in your financial playbook. Like any good pilot, you need to know your instruments—monitor your fees, evaluate service quality, and always be prepared for course corrections when necessary.

Key Insights: Lessons from the Top Gun School of Retirement Planning

The conference highlighted that Tribal communities, much like elite pilots, face unique challenges and need specialized strategies to succeed. RWM Financial Group encourages building a strong support network—your own “squadron”—that understands Tribal needs and values. By tailoring programs to serve not just the current generation but the next seven, you create a lasting legacy, much like how the Top Gun academy molds future leaders.

Actionable Takeaways: Execute Your Mission with Confidence

As Top Gun teaches, executing your mission requires preparation, precision, and the ability to adapt under pressure. The RWM team’s actionable takeaways—such as conducting fee comparisons, ensuring fee transparency, and engaging specialized advisors—are designed to keep your retirement plan flying high. By reclaiming hidden assets and refining your strategies, you can lead your financial squadron to victory.

Flying through the complexities of retirement planning doesn’t have to be a solo mission. With the right team and a keen understanding of the landscape, you can navigate past hidden threats and secure a prosperous future. Just like Maverick and his wingmen, RWM Financial Group is here to guide you through the turbulence, ensuring your retirement mission ends with a successful landing.

Ready to take command of your retirement planning? Our team of financial “Top Guns” is ready to help you soar toward your financial goals with precision and confidence.

Understanding the Different Types of 401(k) Plans for Businesses

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A guide from RWM Financial Group

As a small business owner, providing a retirement plan for your employees not only helps attract and retain talent but also offers significant tax advantages for your business. However, navigating the variety of 401(k) plans can be daunting. This guide will help you understand the differences between traditional and Roth 401(k) plans, as well as other retirement savings options, so you can choose the best plan for your business and employees.

Traditional vs. Roth 401(k) Plans

Both traditional and Roth 401(k) plans allow employees to save for retirement, but they differ in terms of tax treatment:

Traditional 401(k):

  • Tax-Deferred Contributions: Employee contributions are made pre-tax, reducing their taxable income for the year.
  • Taxable Withdrawals: Distributions in retirement are taxed as ordinary income.
  • Employer Contributions: Matching contributions are also tax-deferred, providing immediate tax benefits to the business.

Roth 401(k):

  • Post-Tax Contributions: Contributions are made with after-tax dollars, meaning there’s no immediate tax break.
  • Tax-Free Withdrawals: Qualified distributions in retirement, including earnings, are tax-free, offering potential long-term tax savings.
  • Flexibility for Higher Earners: Unlike Roth IRAs, Roth 401(k)s have no income limits, making them accessible to all employees regardless of their salary.

Both plans allow for high annual contribution limits and employer matching, which can enhance the retirement savings of your employees.

Other Retirement Savings Options

Aside from traditional and Roth 401(k)s, small businesses have other retirement plan options:

SIMPLE 401(k):

  • Designed for businesses with 100 or fewer employees.
  • Offers a simpler, less costly alternative with fewer compliance requirements.
  • Employer contributions are mandatory, but they can be structured as either a matching contribution or a non-elective contribution.

Safe Harbor 401(k):

  • Helps employers pass non-discrimination tests by making mandatory contributions to employees’ accounts.
  • Contributions are immediately vested, which can be a strong incentive for employee retention.
  • Can be paired with traditional or Roth 401(k) options.

SEP IRA and SIMPLE IRA:

  • Easier to set up and maintain, with lower administrative costs compared to 401(k) plans.
  • Ideal for very small businesses or sole proprietors.
  • SEP IRAs are funded entirely by employer contributions, while SIMPLE IRAs require both employer and employee contributions.

Choosing the Right Plan for Your Business and Employees

Selecting the best retirement plan involves understanding your business goals, budget, and the needs of your employees. Here are some key considerations:

Business Size and Resources:

  • For small businesses with limited resources, SIMPLE 401(k) or SEP IRA plans may offer a good balance of benefits and ease of administration.
  • Larger small businesses looking to maximize contributions and offer robust benefits may prefer traditional or Roth 401(k) plans.

Employee Preferences:

  • Understanding your employees’ preferences regarding tax treatment can guide whether a traditional or Roth 401(k) is more attractive.
  • Offering a mix of plans can cater to a diverse workforce, enhancing overall satisfaction and participation rates.

Cost and Compliance:

  • Consider the administrative costs and compliance requirements of each plan. For instance, 401(k) plans, while more complex, offer higher contribution limits and potential for employer matching.
  • Safe Harbor 401(k)s can alleviate some compliance burdens but require mandatory contributions.

Long-Term Goals:

  • If long-term tax savings for employees are a priority, a Roth 401(k) may be appealing.
  • For businesses looking to maximize immediate tax deductions, traditional 401(k) contributions provide a clear benefit.

RWM Financial Group is dedicated to helping businesses and individuals achieve financial security through tailored retirement planning and investment solutions. Contact us today to learn more about how we can support your financial goals.

Interested in Setting Up a 401(k) Plan for Your Business?

Setting up a 401k retirement savings plan for your business is a great way to save money on taxes and provide your employees with a valuable benefit. 

Consider contacting our team for assistance. At RWM, we provide a clear path to secure retirement for employers and employees of successful businesses.

This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.

Mid-Year Financial Check-Up: Why It’s Important and How to Conduct One

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Hey there, financial aficionados and savvy savers! Can you believe we’re already halfway through the year? Time flies when you’re having fun or knee-deep in work, family, and trying to remember where you left your car keys. With the year’s midpoint upon us, it’s the perfect moment for a Mid-Year Financial Check-UP. Whether you’re a meticulous planner or a free spirit, this check-up is your golden ticket to ensuring your financial goals are still on track.

Why It’s Important

  • Stay on Track: Remember those financial resolutions you made with a sparkle in your eye on January 1st? A mid-year review helps you see if you’re still on course or have wandered into the financial wilderness.
  • Adjust to Changes: Life happens! Job changes, unexpected expenses, or even windfalls can significantly impact your financial plans. A mid-year check-up allows you to adapt your strategies to your current situation.
  • Boost Your Confidence: Knowing where you stand financially can give you peace of mind and the confidence to make informed decisions for the rest of the year.

How to Conduct a Mid-Year Financial Check-Up

  • Review Your Financial Goals:
    • Personal Goals: Take a look at your savings, debt repayment, and investment goals. Are you on track to meet them by year-end? If not, it’s time to tweak your approach.
    • Business Goals: For entrepreneurs, review your business’s financial health. Are your revenue targets within reach? How are your expenses tracking?
  • Evaluate Your Budget:
    • Compare your actual spending against your budget. Are there areas where you’re consistently overspending or understanding? This insight can help you reallocate funds to align better with your goals.
  • Assess Your Savings:
    • Check your emergency fund, retirement accounts, and any other savings goals. Have you saved as much as you planned? If not, consider automating your savings to stay disciplined.
  • Debt Check-In:
    • Review your debt repayment progress. Are you on track to pay off high-interest debt? If you’ve taken on new debt, how is it impacting your overall financial picture?
  • Investment Performace:
    • Look at your investment portfolio. Are your investments performing as expected? If not, it might be time to rebalance your portfolio or consult with a financial advisor.

Tips for Adjusting Strategies Mid-Year

  • Revisit Your Priorities:
    • Sometimes, our goals change. Maybe that dream vacation fund is less critical now than boosting your retirement savings. Adjust your priorities and redirect your financial resources accordingly.
  • Cut Unnecessary Expenses:
    • Identify any recurring expenses that no longer serve you. Cancel those unused subscriptions and direct that money towards more meaningful goals.
  • Boost Your Income:
    • Consider ways to increase your income. This could be asking for a raise, taking on freelance work, or starting a side hustle.
  • Update Your Financial Plan:
    • Life evolves, and so should your financial plan. Make any necessary adjustments to ensure it still aligns with your long-term objectives.

Benefits of a Mid-Year Review

  • For Personal Finances:
    • Clarity and Direction: A mid-year review provides a clear snapshot of your financial health and helps you stay focused on your goals.
    • Proactive Adjustments: By identifying issues early, you can make proactive adjustments rather than reactive fixes.
  • For Business Finances:
    • Strategic Planning: Regular reviews help business owners make informed decisions, plan for the future, and stay agile in a changing market.
    • Improved Cash Flow Management: By evaluating income and expenses, you can better manage cash flow and ensure your business remains financially healthy.

Why Choose RWM Financial Group?

At RWM Financial Group, we understand the importance of a solid financial foundation. As a SmartVestor Pro with Dave Ramsey, we are committed to providing trusted financial advice and guidance. Our team of experts is here to help you navigate your mid-year financial check-up with confidence. Whether you’re reviewing personal goals or assessing your business finances, we’ve got you covered with the expertise you need to make informed decisions.

So, let’s raise a glass (or a calculator) to the mid-year mark! Conducting a financial check-up now can set you up for a stronger, more secure finish to the year. Remember, it’s not about perfection but progress. Here’s to making the second half of the year even better than the first!

Happy Reviewing!

Fiduciary Tips from RWM Financial Group

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In the world of financial advice, discovering reliable guidance can seem as challenging as finding a needle in a haystack. Amidst a myriad of conflicting opinions and concealed motivations, individuals often feel overwhelmed and uncertain. However, there’s a beacon of integrity in this chaos: fiduciary responsibility.

At RWM Financial Group, we hold ourselves to the highest standard of fiduciary duty, prioritizing the interests of our clients above all else. We believe that financial success is built on a foundation of trust, transparency, and expert guidance. As part of our commitment to empowering individuals with the knowledge they need to make informed decisions, we’re excited to share some valuable fiduciary tips to help you navigate the complexities of personal finance.

Tip 1: Choose Your Advisor Wisely

When it comes to selecting a financial advisor, not all are created equal. It’s crucial to choose an advisor who is held to a fiduciary standard, meaning they are legally obligated to always act in your best interests. This ensures that their advice is unbiased and free from conflicts of interest. Before entrusting someone with your financial future, be sure to ask if they are a fiduciary and inquire about their qualifications, experience, and approach to financial planning.

Tip 2: Understand Fees and Compensation Structures

Transparent fee structures are a hallmark of fiduciary advisors. Before engaging the services of a financial advisor, make sure you clearly understand how they are compensated. Fiduciaries typically charge fees based on a percentage of assets under management or a flat fee for financial planning services. Beware of advisors who earn commissions or receive kickbacks for selling specific products, as these incentives may influence their recommendations.

Tip 3: Establish Clear Goals and Objectives

Successful financial planning begins with a clear understanding of your goals and objectives. Whether you’re saving for retirement, planning for your children’s education, or building wealth for the future, articulating your priorities is essential. A fiduciary advisor can help you define your goals, develop a customized financial plan, and provide ongoing guidance to keep you on track.

Tip 4: Diversify Your Investments

Diversification is a cornerstone of sound investment strategy. By spreading your investments across a variety of asset classes, sectors, and geographic regions, you can help mitigate risk and improve your chances of achieving long-term returns. A fiduciary advisor can help you construct a diversified portfolio tailored to your risk tolerance, time horizon, and financial goals.

Tip 5: Stay Informed and Engaged

Financial planning is not a one-and-done activity but an ongoing process requiring regular review and adjustment. Stay informed about changes in the market, tax laws, and economic trends that may impact your financial situation. Schedule regular check-ins with your fiduciary advisor to review your progress, reassess your goals, and make any necessary course corrections.

Conclusion

Navigating the complexities of personal finance can be daunting, but with the guidance of a valued fiduciary advisor, it’s entirely achievable. At RWM Financial Group, we’re dedicated to helping our clients achieve their financial goals with integrity, transparency, and expertise. By following these fiduciary tips and partnering with a fiduciary advisor, you can take control of your financial future and unlock new opportunities for success. Contact us today to learn more about how we can help you on your journey to economic well-being.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Writing Your Company’s Retirement Plan Goals

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Guess what? Your company’s retirement plan is like a superhero cape for your organization’s goals. But hold up, before you dive into the superhero action, let’s figure out what you really want to achieve.

So, you know how employers sometimes feel a bit lost when setting up those retirement plan goals? Well, no worries! We’re here to change that and lead your team on a path towards a retirement that screams confidence.

Ready for some questions?

What’s the grand goal of your company’s retirement plan?

Your company’s retirement plan isn’t just a financial tool; it’s the cornerstone of your employees’ future. Are you aiming for financial security, early retirement options, or perhaps a plan that fosters a strong company culture? Clarifying these goals ensures your plan aligns with your company’s vision and the well-being of your team.

How are you handling those fiduciary responsibilities?

Fiduciary responsibilities aren’t just a checkbox; they’re a commitment to your employees’ trust. Beyond legal obligations, it’s about ensuring your investment decisions, communication strategies, and plan management prioritize the best interests of your workforce. Regular assessments guarantee you’re not just meeting requirements but exceeding them.

Are your plan fees playing fair?

Uncover the true cost of your retirement plan. Beyond the surface, scrutinize fees, and explore whether there are more cost-effective options. This not only saves money for both the company and employees but also enhances the overall value of your retirement offering.

And hey, what about the latest legislation – how’s that affecting your retirement game?

The retirement landscape is ever-evolving, influenced by legislative changes. Stay ahead by understanding how new laws impact your plan. This knowledge not only ensures compliance but opens opportunities to optimize your strategy and keep your plan in sync with the latest regulations.

Any room for improvements in the plan design?

Don’t settle for the status quo. Explore innovative plan designs that could potentially enhance outcomes for your employees. From investment options to contribution structures, a proactive approach to design ensures your plan evolves with the needs of your workforce, fostering financial wellness.

Conclusion: Don’t let your company’s retirement plan wander.

Now armed with a more profound understanding of your goals, fiduciary responsibilities, fees, legislative impacts, and potential design enhancements, it’s time to take charge. Set a clear direction, map out a strategy, and ensure your company’s retirement plan isn’t just a benefit but a dynamic force propelling your team toward a secure and confident future.

And guess what? We’ve got your back every step of the way. Reach out to us today, and let’s give your retirement plan a well-deserved checkup. Your company’s retirement plan isn’t just a plan-it’s a journey, and RWM Financial Group is here to make it a remarkable one. Contact RWM Financial Group

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Unlocking Financial Opportunities: The Art of 529-to-Roth Rollovers Explained by RWM Financial Group

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Hey there, savvy savers! Ready to dive into the nitty-gritty of 529-to-Roth IRA rollovers? The SECURE 2.0 Act has opened up a whole new avenue to shuffle around those unused 529 funds for the benefit of your loved ones’ retirement. Let’s break it down, RWM-style.

So, picture this: you’ve been stashing away in a 529 account, dreaming of a bright college future for your kiddos. Fast forward to the SECURE 2.0 Act, and now you’re thinking, “What if I could turn these leftovers into a retirement nest egg?” Well, guess what? You can!

Starting this year, 2024, the new provision allows you to roll over unused 529 assets (up to $35,000) into the beneficiary’s Roth IRA without facing the dreaded 10% penalty or stirring up any taxable income drama. Great news, right? Especially for those of us wondering what to do with excess 529 funds just hanging around like a third wheel at a party.

But hold up! Before you start envisioning your money making its way to Roth paradise, Brahm Rossiter, our Chief Investment Officer at RWM Financial Group, puts it into perspective. “Transforming unused 529 funds into Roth savings is not just a financial move; it’s a strategic journey towards securing a brighter future. At RWM Financial Group, we believe in empowering individuals to make informed choices that pave the way for financial freedom and generational wealth.

Now, let’s talk limits. You can’t just waltz into 529-town, grab $35,000, and sashay into a Roth party. There are rules, dear friend:

Holding Periods

Your 529 needs to have clocked at least 15 years before the rollover dance begins. No shortcuts allowed! Contributions from the last five years before distributions? Sorry, they’re not invited to this tax-free rollover fiesta.

Annual Limits

Your rollover can’t outshine the annual Roth contribution limit, which is currently $6,500, in 2023. So, if you’re eyeing that $ 35,000 lifetime limit, you’ll be doing it over six years – unless the Roth contribution limit does a little cha-cha upwards in the future.

Ownership

The beneficiary of the 529 must be the proud owner of the Roth IRA and must have earned income equal to the rollover amount. Fair’s fair!

Now, here’s where it gets a bit tricky. These are the rules according to the legislation. The IRS might throw in a plot twist during implementation, and some details are still up in the air. For example, can you switch 529 beneficiaries before a rollover, or does that trigger a brand new 15-year holding period? And who’s footing the bill if things go south? Uncertainty alert!

But fear not! If you’re eyeing this new provision with a hopeful gleam, here’s a checklist to chat about with your planning professional:

Hold Your Horses

If you’ve got a 529 plan, no need to make a move just yet. 2024 is the starting gun, and we’re still waiting for the final rules. Patience is key.

Kiddo’s 529 Game Plan

If you’re thinking of making yourself the beneficiary ninja to sidestep Roth IRA contribution rules, hold on. Let’s wait for the lowdown on the lifetime contribution amount and that 15-year holding period.

Roth IRA for the Win: 9 Game Plan

Regardless of the IRS dance, consider opening a Roth IRA for the beneficiary. Get those retirement savings going when the tax rates are friendly and efficient!

Backup Plans

Got an overfunded 529? Fear not! Switch beneficiaries, use it for educational purposes, tackle student loans, or tap into it for a tax-free scholarship – plenty of options on the table.

In a nutshell, this new 529-to-Roth rollover is like your financial safety net, not the main event. So, keep it in your back pocket, chat with your planning pro, and let’s navigate this new terrain together! Contact RWM Financial Group

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.