We review or check most things on an annual basis, our cars, teeth, insurances, memberships etc. Every year we meet with our clients to check that their financial plans are keeping up with changes in the financial and economic environment, as well as their changing needs and those of their families over time. This is where our on track review process comes into its’ own and why we always recommend an annual review of your financial plan so that it continues to meet your goals.
As financial planners, we believe that one of the most important steps in the financial planning process is the monitoring of our clients’ financial plans. Obviously timing can be important so clients can take advantage of any relevant tax saving strategies, but there are other more important reasons for an annual review, these are opportunities to:
- Measure progress and prioritise what’s important
- Check whether lifestyle and/or financial goals are still relevant and adapt the plan to take any changes into account
- Evaluate any personal changes or life events that have occurred and which may alter income, spending or saving projections
- Check whether any recent changes in tax legislation or budget outcomes will have an impact upon the plan
- Review insurances, policies etc. to ensure adequate coverage and protection of individuals and assets
- Review wills and/or estate plan and see if anything needs to be updated
- Check contingencies and expenses including debts
- See if there have been any change in attitudes and tolerances of risk that may affect the asset allocation over time
- Evaluate the performance of investments and ensure that the returns are meeting objectives, making any adjustments to ensure all remains on track
With an uncertain economy and the general unpredictability of life, an annual review gives us the chance to examine our clients’ total financial picture to ensure they can continue to meet their financial goals.