You’ve set your financial goals, put an investment plan in place, and now you’re on the journey toward retirement. But as you progress down that path, changes are going to occur. Whether it’s a major life event, turbulent market conditions, or even legislative changes, giving your financial plan an annual review will help prevent you from getting off track.
Make Sure Your Plan Evolves Alongside You
A personal life change can have a major impact on your financial planning. Marriage and kids require you to expand the scope of your financial plans, such as establishing a 529 fund for your children. And while it’s not pleasant to think about, serious illness or disability may cause you to reassess your insurance coverage and estate planning. These events could also prompt you to consider your risk tolerance and adjust your portfolio accordingly.
“An annual review is an opportunity to speak with a trained professional who can help simplify the complex.”
Keep Your Goals Aligned With Your Lifestyle
Maybe this is the year you finally decide to buy that new car or boat, how much can you spend while still keeping your long-term goals on target and protecting your cash flow? Or, you might have paid off your mortgage, freeing up additional funds to funnel elsewhere. A financial review will give you an in-depth look at your current status and portfolio performance, providing the insight you need to make proactive changes.
Knowledge Is Power
Not everyone has a high level of financial literacy, and that’s ok. An annual review is an opportunity to speak with a trained professional who can help simplify the complex. They can keep you up-to-date on everything, including changing tax laws which could lead to unexpected impacts on your tax liability and deductions. It’s also a good time to get information on emerging trends and market developments that could minimize your risk.
Building A Solid Relationship
Communication is the cornerstone of any good relationship. The more you speak with your financial advisor, the more understanding and trust you establish. Knowing your unique situation and goals gives them insight into building a financial plan designed just for you. Take time to speak with a professional and get a check-up on your financial health. If you don’t have an advisor, contact an FRC® trained professional.
