We all make New Year’s resolutions and plans for the coming year, and financial planning is no exception. Now, in July, it’s a great time for a mid-year status check.  Are you on-track? What are the top five questions individuals should be asking themselves?

1. Am I on track with my 401(k) or 403(b) salary deferrals to meet retirement objectives?

The current law permits a salary deferral of $16,500 to employer retirement plans and an extra $5,000 for those 50 and up. Increasing salary deferral is not a dollar-for-dollar reduction in take-home pay, so it may be easy to afford as one’s salary increases.

2. Does converting a traditional IRA to a Roth IRA make sense this year?

If one’s salary has decreased for one reason or another this year, it may be an opportunity to convert tax-deferred assets to a tax-free vehicle such as the Roth IRA. The converted assets will be taxed as ordinary income tax rates, but that rate could be significantly lower than in the future when one withdraws from an IRA. There is no risk, as a Roth IRA conversion can be recharacterized back to a traditional IRA if one’s income situation ends up in a higher tax bracket than prudent for a conversion.

3. Are there tax loss harvesting opportunities now?

If an individual invested in an asset that has lost money, he or she can take the loss and reinvest in a similar asset to capture the loss. The losses can be used to offset future realized short- and long-term gains, long-term capital gain distributions and $3,000 of income to the extent of the loss. If the losses exceed the offsets listed, they can be carried forward indefinitely. Do not wait until the end of the year to harvest losses because they could disappear. Do it now, reinvest and reduce future tax obligations.

4. Does my portfolio need rebalancing?

Hopefully, individuals have worked with advisors who have helped choose the appropriate equity to bond ratio for each person’s financial objectives. In the equity portion, each asset class should have a target in-line with the overall plan. Has that asset class exceeded or fallen under its threshold? In either case, rebalance by taking profits from asset classes that have done well and adding to asset classes that are lagging. In other words, sell high and buy low.

5. How can I take advantage of the $5 million gift exclusion provision offered during the temporary estate law environment?

The gift allowance in 2011 and 2012 has increased from $1 million to $5 million, which creates an opportunity to reduce taxable estates. The gift allowance allows individuals the opportunity to gift family more than the annual $13,000 per person by using all or a portion of the current $5 million gift allowance during one’s lifetime.

By asking yourself these five questions, you can help ensure that you are meeting your financial goals, maximizing your gains, minimizing your losses and setting yourself up for a successful financial future.