Each year, at least once per year, a thorough checkup can help extend the life and keep any machine, person, or plan – just about anything – performing efficiently for a much longer period than not undergoing annual maintenance.
I was taught that annual visits to the doctor could boost physical health, checking the performance of an air conditioning unit once per year can increase the efficiency of the system, servicing a lawnmower before each mowing season can maintain a precise cut – the list goes on. The same can be said for an annual financial wellness check-in, increasing the chances of wealth security through every stage of life. While some enjoy an “end of year” review, wealth checkups can be effectively performed at any point during the year, so long as it is at least once per year. Furthermore, unless one is an expert in these fields, it is typically best to consult with a professional in order to shift the burden of responsibility to someone trained for the specific task. In short, to mitigate oversight or risk of failure when performing an annual review, one must have the necessary level of will, skill, and time.
Below is a topical list of items we encourage addressing at least annually to ensure the health of your wealth is in optimized condition for providing ongoing financial security.Financial Plan
- Short-, intermediate-, and long-term goals
- Assess comfort level with the plan of action
- Update any/all assumptions to current data
- Upcoming planned expenses
- Potential tax-loss harvesting opportunities
- Insurance coverage audit
- Charitable giving strategies
- Planned distributions (i.e., Required Minimum Distributions)
Investment Plan
- Assess comfort level in the current portfolio
- Review prior performance compared to an appropriate benchmark
- Understand current events and correlation to portfolio positioning
- Indicate objectives and purpose for each account and asset
- Confirm the chosen risk level is in line with the desired risk level
Other Pertinent Topics
- Beneficiary designation
- Fiscal and monetary policy overview
- Future tax planning
Are you in need of a financial check up? Find out how we can help you here.
COMMENTS