When Was Your Last Financial Check Up?

a bag of money with a medical stethoscope checking out its health during a financial check up

The Importance of an Annual Financial Check Up

By Kristi Desepoli, Heritage

 

It’s crazy to sit back and think about everything that can happen in a year. With all of the curveballs that life throws your way, it’s important to adjust accordingly.  When it comes to financial success, it’s critical to have a plan in place and make adjustments as things change.  What may have been important last year, may not be as important this year, and it’s imperative to assure your plan aligns with what is significant to you and your goals.

Here are three reasons why an annual financial check up should be at the top of your to-do list:

Your retirement plan may no longer reflect your goals.

Along with everything else, our priorities tend to change. What many see retirement looking like at one point, can often change drastically after the addition of grandchildren, real estate purchases, or any other major life-changing event. Even in the event that your goals remain the same, and no major life changes occur, sitting down annually to review and make any necessary adjustments is critical in assuring that your retirement dreams become a reality.

Your insurance needs and beneficiaries may need to be updated.

Insurance can serve as a great protector against the unexpected, but it is always smart to sit down and take a look at your needs annually. Make sure that you have the proper amount of coverage in all of the right places. For example, when it comes to life insurance, as your family grows it may be best to increase your amount of insurance to protect your loved ones. Additionally, although most people typically make changes to their wills after major life changes, more often than not other accounts get overlooked when it comes to those changes. Assets in retirement accounts pass directly to the beneficiaries that you designate within the account. Because of this, it is vital that you review your beneficiaries annually to be sure they are up to date.

Your investing goals might have changed.

Since our priorities change from time to time, during your annual financial review it is important to evaluate your current investment strategy. If things have changes, you can be sure to make adjustments as necessary. Even in times where your goals may have remained steady, it is vital to also look at different economic factors. Real estate conditions, interest rates and inflation, all determine whether your portfolio needs adjusting based off of those factors.

 

For more information on financial wellness check out The #AskTheAdvisor Show Episode 22

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