Second-Half Checkup: A Five-Step Program

Granted, most people wait until year-end to do so-called tax-loss selling, but consider doing it now while you have more leisure time and aren't stressed out because of the ever-painful holiday crowds and shopping. At that time of year, "there's less time to make a thoughtful decision" says Spiegelman.

Plan for Future Spending

If you're going to need money in the next year or two for, say, your child's wedding or college tuition, start moving that money into money market accounts. There is no reason to risk it in the stock market since your crystal ball will not help you these days.

"It's really important to make sure you're on track for your spending goals," says Dave Moran, a CFP and senior vice president at Evensky & Katz in Coral Gables, Fla.

And if you're retired, it's even more important to understand your spending habits. "What's the next two years of living expenses look like? And are you on track?" asks Moran. Determine whether you can generate more income or you'll need to cut back on your spending.

Consider Retirement

Are you maxing out your 401(k)? You'd better be. If you're not, then start. At least make sure you're contributing up to your employer's match. That match is free money, so you'd better not be leaving it on the table.

If you're 50 or older, make sure you're taking advantage of the available catch-up provision. That means you get to put in an extra $4,000 a year to bring your annual total to $18,000.

Self-employed folks, whether it's an IRA or a solo 401(k), the same rules apply to you. Make sure you're maxing out your contributions. And if you don't have a retirement plan in place, get one. There are a bunch of options out there these days (good fodder for another day), so do some legwork and pick the plan that's best for you.

Take Care of You and Your Heirs

Do you have a living will in place? Living wills, a.k.a. health care directives, are for everyone, not just the elderly. The Terry Schiavo fiasco should've proved that.

A living will allows you to write down your wishes about your end-of-life medical care. Do you want the feeding tube or not? Having your wishes in writing not only allows you to live your life your own way, but it will help your family if they ever need to make those tough decisions. If you don't have a living will, get one.

And finally, evaluate your gifting program for 2005. "Avoid the year-end rush to make deductible contributions and/or take advantage of the annual $11,000 gift tax exclusion," Spiegelman says. "Give yourself plenty of time to be thoughtful about giving to family members and charitable organizations."

So while you're soaking in the sun, take a few minutes to think about your current financial situation. Spending a little time on it now will inevitably allow you more beach time in the long run.

TSC's Second-Half Preview Trends to watch over the next six months
	Why the Bears Are Smiling Picking Tech's Winners Expect the Greenback to Stay Strong Energy Names Have Stored Power For Handsets, It's Motorola's Year Satellite Radio Keeps Growing		Hotel Industry Stays the Course Banks Shoulder a Heavy Load No Love for Big Pharma Ritholtz: Watch the Macro Movers Hospitals Recover Second Half Biotech: Healing the Wounded