It’s no exaggeration to say that financial reviews are one of the most important aspects of successful financial planning. Yet, many people assume that once their financial plan is in place, they can simply ‘set it and forget it.’ In reality, life is constantly changing, and your financial plan should adapt along with it.
Whether you’re in Vancouver or across Canada, working with a fee-only financial planner can help you stay on track. Here are six key reasons why keeping up with regular financial reviews is essential:
1. Life Changes Happen
Personal changes can have a significant impact on your financial plan. For example:
- A change in marital status might require adjustments to your insurance planning, estate planning, or joint financial goals.
- A serious illness or disability may mean reassessing your insurance coverage, savings strategy, or long-term goals.
- Welcoming a new child will require updates to your expenses, insurance coverage, and child education planning strategy.
2. Lifestyle Changes Affect Your Finances
Big lifestyle events often require a fresh look at your plan:
- Paying off your mortgage frees up additional cash flow that could be invested or saved for new goals.
- Planning a major purchase, such as a new vehicle or home renovation, needs to be carefully evaluated within the context of your cash flow and long-term financial objectives.
- Relocating to another province or country for work necessitates adjustments to your financial and tax planning.
3. Tax Changes
Staying up-to-date on tax laws is essential for effective financial planning:
- Tax changes may affect your tax liability, deductions, and retirement savings strategies.
- There may be new tax benefits you can qualify for—be sure to ask your financial planner or accountant during your review.
Partnering with a fee-only financial planner in Vancouver ensures that your plan remains tax-efficient and compliant with current legislation.
4. Checking if You’re on Track
A financial review is your opportunity to evaluate whether your strategy is still on course:
- Are your investments performing as expected within your investment planning strategy?
- Has your cash flow changed, impacting your ability to save?
- Is your asset allocation still aligned with your risk tolerance and retirement planning goals?
5. Pulse Check on Market and Emotional Wellbeing
How do you feel about your money with all the changes in the market?
- Regular reviews keep you informed about market developments and help you feel at ease with your finances.
- This knowledge helps you make timely decisions to seize opportunities and mitigate potential risks.
- Money is emotional because it’s tied to your lifestyle and goals, but being informed and guided ensures you don’t make reactive decisions about your finances.
6. Strengthening Communication and Accountability
Reviews are a chance for open communication and transparency:
- You can ask questions, share concerns, and ensure we’re addressing your evolving financial needs.
- Reviews also help you hold us accountable for delivering on your financial plan and ensuring we’re providing the support you need.
Why Regular Reviews Matter
While it’s always helpful to inform us of significant changes when they happen, annual reviews are designed to catch things that might otherwise slip through the cracks. Without regular check-ins, you might delay important financial conversations until it’s too late to act.
The advantage of a consistent review schedule is that we can proactively address issues and spot opportunities before they arise. Ready to book your next financial review with an unbiased fee-only financial planner? We are happy to help you achieve your financial goals.
