Is Your Portfolio Ready for 2026? A Financial Health Check for Australian Investors

The start of a new calendar year and slower days of summer often prompt a natural pause, with people taking the time to review the year that was and position themselves for the twelve months ahead.

A financial health check at this point is not about predicting markets or making immediate changes. It is a way to ensure clarity before momentum builds again: understanding what you want from your life in the short, medium and long term and how best to position yourself to achieve those goals. 

Is travel on the horizon for you? Are you hoping to buy a property, upgrade or help younger family members secure a foot on the property ladder? Do you plan to work for another decade, transition to part-time work and more passion projects, or give up paid work completely? 

After clarifying your goals, it can be useful to review how your capital may support you to achieve them. How do the different elements of your portfolio fit together, and is your current approach still suitable for the year ahead?

Viewed this way, financial health is broader than any single investment. It encompasses considering objectives, liquidity, structure and risk, and how these elements work together over time, either independently or through discussions with a financial adviser.

What “financial health” means in practice

At its core, financial health is about alignment:

• Clarity around goals and priorities
• Confidence that capital is structured appropriately
• Comfort with the level of risk being taken
• Flexibility to respond as circumstances change

Together, these elements can provide a practical framework for evaluating whether a portfolio continues to support both near-term needs and longer-term objectives.

Step 1 – Clarify what your portfolio is meant to do

A valuable starting point for any financial health check is to step back from performance figures and return to first principles. Begin by revisiting your main objectives: what you want your capital to provide today, the role of regular income relative to longer-term capital growth, and the balance you are comfortable striking between preserving capital and seeking growth. These preferences not only guide investment choices but also influence how risk is managed and how your portfolio is structured.

It’s also worth considering whether your priorities have evolved in recent years—and whether your portfolio has evolved with them. Changes in personal circumstances, market conditions, or time horizons can all affect how appropriate an existing strategy feels. Even if your overarching approach remains the same, reaffirming your intentions can be just as valuable as reviewing performance.

Step 2 – Put your income and expenses under the microscope

Once you’ve clarified your goals, the next step is to get a clear picture of your cash flow. Understanding what’s coming in and going out will reveal how sustainable your financial position is and where small adjustments could make a big difference.

Start by listing all key income sources, such as salary or wages (if you’re still working), dividends, fund distributions, interest from deposits and bonds, rental income, and any returns from private credit.

On the expenses side, review your spending patterns over the past year and think about how costs might shift in 2026. Pay particular attention to areas where expenses are expected to rise, including private health insurance, school fees, or other recurring commitments.

Step 3 – Check structure, risk and liquidity

With your cash flow in focus, the next step is to look at how your portfolio is built and how it may respond across different market conditions. Start by reviewing how risk is spread across your investments and how potential downside is managed if conditions become less favourable.

Consider whether your portfolio includes assets that behave differently from share markets. During periods of market correction, having exposure to investments with low correlation to equities can play a role in helping cushion volatility and support stability.

Liquidity also deserves attention. Many financial advisers suggest maintaining a readily accessible buffer — typically enough to cover three to six months of living expenses — to help manage unexpected costs or income disruptions. The appropriate amount will depend on individual circumstances, but having a cash safety net can provide flexibility and peace of mind when markets are unsettled.

Ultimately, the right balance between risk, return and liquidity will look different for every investor. However, the underlying aim is often the same: to maintain a portfolio that is well-positioned across a range of possible market environments.

Step 4 – Plan for the future

‘The only sure things in life are death and taxes’ (Benjamin Franklin)

Taxation of assets and wealth is likely to remain a focus of policy debate in Australia. The additional tax on superannuation balances over $3 million is now locked in, albeit the taxation of unrealised gains is gone. There is already a quasi-death tax in place in the form of a tax levied on superannuation death benefits paid to certain beneficiaries.

Against this backdrop, it can be helpful to step back and review the key pillars of your financial plan, particularly those that relate to long-term planning and legacy considerations. Ask yourself:

• Are your wills, powers of attorney and superannuation beneficiary nominations up to date?
• Have you recently reviewed your insurance and estate planning arrangements to ensure they still reflect your current needs and priorities?

Taking the time to revisit these details helps ensure your financial structures stay aligned as your circumstances and regulatory conditions continue to evolve.

Turning the 2026 health check into next steps

A financial health check at the start of the year doesn’t need to be complex or dramatic. More often than not, it leads to a few practical refinements rather than a full portfolio overhaul.

For some investors, this may involve small adjustments to the mix between growth, defensive, and alternative income exposures, or refinements to where income is sourced and how concentrated it may have become.

The outcomes from this health check are often best discussed with a financial adviser who can place them in the context of your broader financial position, objectives and constraints, and help decide how different asset classes – including secured real estate credit – fit within your portfolio.