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4 Times You Should Review Your Financial Plan


When Should You Review Your Financial Plan?

“Nothing is absolute. Everything changes, everything moves, everything revolves, everything flies and goes away.” – Frida Kahlo

If you’re a forward thinker with a financial plan, congratulations. You’ve taken a proactive move to a clearer path, as far as your financial future is concerned.

Ah, there’s nothing quite like that new plan feel. The confidence and perspective can’t be beat. But as time goes by, you may start to wonder, “When should I review my financial plan?”

That’s a great question!

Life changes. It’s inevitable. Sometimes those changes are slight, and other times they alter your world. While those monumental changes are obvious, the little things can add up. Considering the ever-changing nature of life, here are four times when you should review your financial plan.

Review your financial plan before major, expected changes

Maybe you’re considering retirement? Finally paid off those student loans? Wrote your last college tuition check and are officially an empty nester? Decided to buy your dream house? Or maybe you decided to follow your love of mountain-fresh air to a new Colorado home with a brand-new job?

Regardless of what is changing, the most effective time to review your plan is before things change. Instead of taking the leap and making a choice based on a best guess, wouldn’t it feel better to peer into your possible futures?

Tiffany, our financial planner, can build out different scenarios to explore your what-ifs. So when it’s time to make those life-altering decisions, you can do so with confidence.

Review your financial plan after major, unexpected events

It would be nice if every major, life-changing choice was yours. But life tends to send an unexpected curve ball every now and then. What’s happening now in the US is a perfect example. No one could have predicted COVID-19 and the lasting ramifications on many. If you were impacted, lost your job, were furloughed, or maybe voluntarily gave up raises for five years, reviewing your financial plan is a sound idea.

Anything that makes you doubt or question your financial picture warrants a review. From the emergency plumbing overhaul, to a pandemic layoff, to a surprise baby, a financial planner can make sure you’re still on track to achieve your goals. And if you’re not, your planner can help you adjust and get back in the groove.

Review your financial plan anytime you wonder “what’s next”

We all wonder about our financial picture. But imagine having the peace-of-mind of never wondering if you’re doing everything you should to fulfill your goals, to know that you’re on track for your dreams. That level of clarity is possible.

When you work with a financial planner, you’re developing a lasting relationship with someone who may be able to help you find the path to your best future. Your financial planner should be your go-to for questions like “what’s my next step?”.

Review your financial plan regularly, and meet with your planner at least annually

A lot can happen from one year to the next. It can be easy in the crush of busy life that some little detail gets missed. Establishing an annual cycle to meet with your financial planner can help you prevent missing important opportunities or events. Your planner can help you decide if a plan review is needed. And if your financial planning fees are included in your investment management fee, why not update your plan annually?