When to Review Your Financial Plan

1. Life Milestones and Changes
   Life constantly evolves, and your financial goals and needs may shift as you reach different milestones and experience changes. Major life events, such as marriage, starting a family, purchasing a home, changing careers, or retiring, can significantly impact your financial situation. Regularly reviewing your financial plan when encountering these milestones can help ensure your strategy adapts to your new circumstances.
2. Market Volatility and Economic Changes
   Financial markets are dynamic and can experience substantial volatility over time. Economic changes, inflation, interest rate fluctuations, and market downturns can all impact your investments and overall financial health. Regularly reviewing your investment portfolio and adjusting your plan to align with prevailing market conditions is crucial for maintaining a balanced and resilient financial strategy.
3. Annually or Semi-Annually
   While the frequency of financial plan reviews can vary, a standard recommendation is to conduct a comprehensive review annually or semi-annually. These regular check-ins allow you to assess your progress toward your financial goals, make necessary adjustments, and identify any discrepancies or gaps in your plan. These reviews also allow you to rebalance your investment portfolio to maintain your desired risk level.
4. Tax Season
   Tax planning is a crucial aspect of any financial plan. Conducting a review during tax season allows you to evaluate potential tax-saving strategies, take advantage of any changes in tax laws, and optimize your financial decisions accordingly. Adjusting your financial plan to minimize tax liabilities can significantly impact your economic well-being.
5. When Income or Expenses Change
   Fluctuations in income and expenses can directly impact your financial plan's feasibility. If you experience a significant change in your income – whether due to a raise, job loss, or retirement – or if your expenses increase due to unexpected medical bills or other unforeseen circumstances, it's wise to revisit your financial plan. Adjusting your budget, savings goals and investment strategy can help ensure your project remains realistic and achievable.
6. Regular Check-ins for Small Adjustments
   In addition to the more significant review points mentioned above, regular check-ins every few months can be valuable. During these sessions, you can track your progress toward your financial goals, monitor your spending habits, and make minor adjustments to your plan as needed. These incremental changes can help you stay on track and ensure your project aligns with your aspirations.