Why is Periodic Review of Your Financial Plan is Important

1. Why is Periodic Review of Your Financial Plan is Important? In today’s ever-changing financial landscape, the importance of having a well-thought-out financial plan cannot be overstated. A financial plan provides a roadmap to help you reach your long-term goals, whether it’s saving for retirement, purchasing a home, or creating a legacy for your family. However, the key to ensuring that your financial plan remains effective is periodic review and adjustments. Many people make the mistake of setting a financial planning and then forgetting about it. Life is dynamic, and various factors, such as income changes, market volatility, or life events (like marriage or having children), can significantly impact your financial goals. That’s why it’s crucial to conduct regular reviews of your plan with the help of a Certified Financial Planner. Here are a few reasons why periodic reviews of your financial plan are essential: 1.Adapt to Changing Circumstances Your financial goals and priorities might change as life progresses. Whether it’s an unexpected job loss, changes in income, a change in family status, or a new investment opportunity, your wealth investment needs to reflect these shifts. Regular reviews ensure that your plan stays relevant to your current situation, helping you stay on track with your objectives. 2.Stay Aligned with Your Financial Goals By comparing your current situation to your financial plan, you can assess your progress towards each goal. This helps you identify areas where you are doing well and areas where you might need to adjust your strategy. Review your financial strategies at least annually, to check whether you are on track to reach your financial goals and to understand any deviations if you have not implemented the plan as per the recommendations.

2. 3. Changes in Market Circumstances or Investment Instruments The financial landscape is constantly evolving, and new opportunities may arise that were not present when you initially created your plan. What might have been a sound investment strategy a year ago may not be the best choice today. Regular review of your financial plan will ensure that your investments are aligned with your current financial objectives. 4. Review after Major Life Events Life is full of surprises, some are expected and others not so much. Major life events like marriage, the birth of a child, a career change, or early retirement can significantly impact your financial goals. Keep your financial Advisor in the loop about any changes in your life, career, or financial objectives. 5. Stay Prepared for Retirement One of the most critical components of any financial plan is ensuring you’re on track for retirement. As retirement approaches, it’s essential to review your progress and adjust your plan based on your projected retirement needs. 6. How often should you review your financial plan? The ideal frequency depends on your individual circumstances and the complexity of your plan. However, a good starting point is to schedule reviews: •Quarterly For those with dynamic financial situations or high-risk investments. •Biannually For individuals with a stable income and moderate risk tolerance. •Annually For those with a well-established plan and low financial volatility. Remember, the key is to be proactive and consistent with your reviews. Do not wait for a crisis to prompt you to take action. Set aside time and review your financial plan like important appointments and treat them with the same seriousness you would any other commitment to your financial well-being. Whether you need a short-term financial plan or a long-term strategy, we’re here to help! Get in touch with us and take the stress out of financial planning. Secure your future with confidence! Feel free to connect with us on: •info@nirajnanal.com •+91 9130126096 •Niraj Nanal