Financial Health Check: Post-Tax Season Review

As the dust settles on another tax season, it's time to take stock of your financial well-being. While the annual ritual of filing taxes may evoke stress and anxiety for many, it also presents a valuable opportunity for reflection and planning. In this post-tax season review, we'll explore why it's essential to assess your financial health, how to conduct a thorough evaluation, and what steps you can take to set new goals and secure your financial future.

Why Conduct a Post-Tax Season Review?

The completion of tax season serves as a natural milestone—a cue to pause and assess your financial standing. Just as a medical check-up provides insights into your physical health, a financial health check offers valuable insights into your fiscal fitness. By understanding where you stand financially, you gain clarity on your strengths, weaknesses, and areas for improvement.



Consider this: Sarah, a young professional, recently completed her tax return and was surprised by her tax liability. Upon closer inspection, she realized that her lack of tax planning and investment strategy had led to a higher-than-expected tax bill. This realization prompted Sarah to conduct a comprehensive financial review, setting her on a path towards greater financial literacy and security.

How to Conduct a Post-Tax Season Review

Conducting a post-tax season review involves a systematic examination of your financial situation, encompassing income, expenses, investments, and goals. These steps will help you through the process:

• Gather Financial Documents

Start by collecting all relevant financial documents, including tax returns, bank statements, investment statements, and debt obligations.

• Assess Income and Expenses

Review your income sources and expenditures over the past year. Identify areas of surplus and areas where you may need to cut back or reallocate resources.

• Evaluate Investment Performance

Analyze the performance of your investment portfolio, taking into account returns, diversification, and risk tolerance. Consider whether your investment strategy aligns with your long-term financial goals.

• Review Debt Obligations

Examine your debt obligations, including mortgages, student loans, credit card debt, and personal loans. Evaluate your repayment progress and explore opportunities to refinance or consolidate debt.

• Reflect on Financial Goals

Reflect on your financial goals and aspirations, both short-term and long-term. Are your goals within reach? Do you require any tweaks or adjustments to stay on course?



• Setting New Goals Charting a Course for Financial Success

Armed with insights from your post-tax season review, it's time to set new goals and chart a course for financial success. Here are some actionable steps to help you get started:

• Establish Emergency Savings: Prioritize building an emergency fund to cover unexpected expenses or income disruptions. Strive to accumulate savings equivalent to three to six months of living expenses in an easily accessible account.
• Invest in Retirement: Contribute to retirement accounts such as 401(k)s, IRAs, or Roth IRAs to secure your financial future. Take advantage of employer-matching contributions and tax-advantaged retirement savings options.
• Create a Budget: Develop a realistic budget that aligns with your income, expenses, and financial goals. Track your spending habits and identify areas where you can reduce discretionary spending and increase savings.
• Diversify Investments: Diversify your investment portfolio to mitigate risk and maximize returns. Contemplate diversifying your investments across various asset categories, including stocks, bonds, real estate, and alternative investment options.
• Seek Professional Advice: Consider consulting our advisors to receive personalized guidance and expertise. We can help you develop a comprehensive financial plan tailored to your unique circumstances and goals.

As the curtains close on another tax season, the importance of conducting a post-tax season review cannot be overstated. This pivotal moment offers more than just a chance to breathe a sigh of relief after navigating through forms and calculations; it serves as a golden opportunity to take charge of your financial destiny.

By embracing the post-tax season review, you embrace a mindset of financial empowerment and responsibility. You acknowledge that your financial health is not merely a matter of chance but a result of conscious choices and informed decisions. Through this review, you gain a clearer understanding of where you stand financially, enabling you to identify areas of strength and areas for improvement.

Moreover, the post-tax season review is a catalyst for action—a call to set new goals and chart a course towards financial success. It's a time to dream big and plan strategically, whether that involves building an emergency fund, investing for retirement, or pursuing other long-held aspirations. By setting concrete goals and developing actionable plans to achieve them, you transform your financial vision into reality.

At Aligned Wealth Advisors we believe in the power of financial literacy and education. Your post-tax season review is a reminder and a testament to the fact that understanding your financial situation is not impossible. With our help, you can become an active participant in your financial journey and an architect of your financial future.

Approach with curiosity, diligence, and optimism. Embrace the opportunity to take stock of your financial health, set new goals, and lay the groundwork for a future filled with financial stability, security, and prosperity. Remember, the journey towards financial empowerment begins with a single step—and the post-tax season review is your first stride towards a brighter tomorrow.

Andrea Ward, CPA

Andrea has worked in the finance industry for nearly all of her professional life. Taking over the family business she continues to combine her tax and investment knowledge to leverage the investment power of money while reducing gains taxes paid to the IRS. She lives in the Fort Worth, Texas area, (although is happy to work with virtual clients all over the United States!) Andrea loves to travel and dabble in home decorating.

Matt Ward

Matt began helping clients in the insurance industry. However, he struggled with big business’s emphasis on selling rather than helping, so he came to work with the family business focusing on investment advisory. In his free time, he shreds the gnar on his snowboard and jams on drums and guitar (but not at the same time).