Why Do I Need an Annual Financial Plan Review?

Couple Reviewing Financial Plan with Advisor

Make time for an annual review of your financial plan.

You’re still married. You still have two kids. You still plan to retire in 5-10 years. Everything is the same, so why is a review of your financial plan so important? Here are a few of the reasons we encourage a financial plan review every year, no matter what.

Tax Codes

Each year, the Internal Revenue Service (IRS) announces a new set of tax codes. It may include an adjustment to the tax brackets, the addition or removal of tax incentives, revised guidelines for certain exemptions, or a number of other amendments. Depending on your circumstances, these may or may not have an impact on your financial plan. Since it’s hard to keep up with the changes from year to year, a financial plan review is a good opportunity to make sure you’re prepared to make adjustments on your end.

IRA Contributions

Once you reach a certain age, you may be able to contribute more money to your IRA accounts. For some, this is a valuable advantage that will help work towards retirement goals. When you schedule an annual review of your financial plan, your advisors can discuss these opportunities with you and update your plan to accommodate for greater contributions. Without the review, you may miss out on these important stepping-stones toward retirement.

Investment Strategy

When your advisor initially created a financial plan, you probably reviewed your savings and investments goals together. It’s a good idea to revisit those plans each year, to ensure you’re on track as far as time frame, risk tolerance, and specific preferences. If market conditions over the past year gave you concern, then meeting with your advisor can help you decide whether or not your accounts need to be rebalanced.


If you’re nearing retirement age, then you may have a life insurance policy that needs adjusting. You may want to drive more funds to a health insurance plan that can help you with medical expenses as you age. There are also certain deadlines for enrolling in Medicare, so you’ll want to discuss how those changes may affect your financial plan.

Of course, if you have experienced any major changes with your career or family, then you may not want to wait for your annual review. Events such as death, illness, marriage, divorce, job change, injury or other occurrences may have an immediate affect on your financial plan.

The bottom line is, an annual review of your financial plan is important because you may not realize the events or changes that affect you – either this year or a few years down the road. Remember that your financial plan is your long view: it needs periodic maintenance in order to work towards the results you want at the end.

Schedule a financial plan review to make sure your future is on track.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Leave a Reply

Your email address will not be published. Required fields are marked *