The inserts you have sound right for a 5 month old. You can take the body insert out at around 8-9 months and the wedge insert usually 12-15 months. But it does vary based on the body shape.
In my picture, the straps are on his hips, well, in terms of how car seat experts talk about hips - what they really mean is the pelvis (as in the bony bit of hip you can feel at the side, this is part of your pelvis). And to differentiate hip from waist. You want the lap strap on the hip, not the waist. It's not hips as opposed to legs, because tops of legs is also OK as long as it's in contact with the pelvis.
If you see for example the picture at the top of this article, the straps are across the little girl's tummy. They aren't on her hips at all, even though the harness looks more like you'd expect a 5 point harness to look (like an upside down star). https://www.madeformums.com/reviews/joie-i-spin-360-review/
Think about where their pelvis is, if you think about the shape of a pelvis it's sort of an upside down trapezium. The thing is, if you take the body boosting inserts out too early, the straps basically go across their tummy which is not what you want. All car seat lap straps and car seatbelts too when you get to that stage are designed to engage with the pelvis as this is a strong solid part of the body, whereas if they are on the tummy instead, this is soft/squishy and much more easily injured. It's less important when rear facing, because the seat shell will take the majority of the impact so the position of the straps is less important but they will still be contained by the straps on the rebound phase of an impact so it is worth having them right.
I think this is just because the insert is so bulky in this seat, which means that the buckle sits very far up when the insert is removed too early, but also makes it look very strange and not what we expect when we think of a 5-point harness, when used with the insert with an older baby. It does look strange compared with other seats TBH. I think this is why a lot of the infant carrier type seats only have a 3-point harness, because it's hard to get the pelvis engaged properly when they are in that reclined position.
The other thing is that with a 5mo, you'll find if you take the inserts out too early their head will fall forwards when they fall asleep. So it is worth keeping them in for that reason.
You can always send photos to Joie if you're ever unsure and they should be able to advise you :)