Even in the best of times, life is constantly changing. New jobs, marriage, kids, your first home – all require a fresh look at your financial plans. An annual review with a financial planner becomes even more essential during uncertain periods.
An annual review allows you and your financial professional to reassess your objectives, tweak your investment strategies, and ensure your money works hard for you. If your plans slide, you risk letting small issues mushroom into major ones.
New priorities shouldn’t threaten your long-term wealth. Marriage and kids change everything. Suddenly, you must worry about saving for college and buying your own home. With these pressures, it’s all too easy to underfund your retirement. That’s a big mistake because time is your biggest ally when building your retirement nest egg. Your financial plan must balance these competing priorities while considering that you don’t want to saddle your children with supporting you in your senior years.
Investments need careful management. An annual review is a great time to evaluate your investment portfolio. You want to know whether your strategy and selections gave you the desired performance. Perhaps your investments are insufficiently diversified, or your asset allocations compromised your returns. Maybe one of your mutual funds has changed its focus or management. Or it might be the right time to harvest and reallocate some of your investment gains. Your annual review can help ensure your investments are up-to-date and properly targeted.
New circumstances can mean higher taxes. When you were single, you paid taxes on your one income. If you get married, you may become a two-earner household. And new jobs can often mean higher salaries. If you start your own business, a successful run could significantly increase your taxes. Your financial professional can find ways to reduce your tax bite and help you keep more money as your life evolves.
Insurance plans should be kept up to date. College students have many things on their minds, but we’d venture to guess that these usually do not include insurance. Now you have a growing family and more assets to protect. An annual evaluation of your and your family’s needs will help ensure you have the optimal coverage for at least the year ahead. With the proper insurance, you can protect against sudden health expenses or significant income loss. Plus, new ideas in the insurance industry are constantly yielding different policies that may save you money while providing similar or potentially better coverage.
Embrace the changes. And make no mistake, life will change, sometimes in unexpected ways. Planning won’t prevent change, but planning can help prepare you and your family to meet its challenges. Contact Investment Strategists at Better Banks today to schedule your annual financial plan review. Let’s ensure you’re in the optimal position to navigate the year ahead.
When you're ready to talk, call us at 309.685.9595 to speak with one of our team members or Schedule an Appointment.
