![]() ![]() While managing assets is a critical part of what we do, financial planning is just as important. At ARQ Wealth Advisors, we believe in financial planning so much that we include it as part of our management fee for no additional charge. While these are good points, they do you no good if you don’t have a plan to begin with. Does everything look right? Are the assumptions reasonable? Look it over. Review: Check your plan to make sure it makes sense to you. While we know that markets do not go up every year, you want to be sure that your plan is still consistent with your goals. Path: Is my financial plan still on the right track? There is more to reviewing a financial plan than just market returns. Savings: Is the amount I had planned to save reasonable? Sustainable? Am I able to save more now than what I originally planned? If so, is saving more necessary, or would I prefer to use that money on something different? Do I need more liquid assets for emergencies? Are the goals I had when I started the planning process the same goals I have now? Are there any that are no longer relevant? Has what I wanted to achieve in my retirement changed over time? Is there something else I want to be able to do? Goals: Typically, goals during one’s accumulation phase are quite different than during the distribution phase. If you don’t know how much risk you can tolerate, here is brief questionnaire to find out. Risk can be managed, but it is important that you are comfortable with whatever amount it takes to achieve your goal. But there can be exceptions based on your retirement income needs, time horizon, investment experience, etc. Risk: Does the level of risk in my portfolio and my financial plan match my risk tolerance? As we age, typically we should reduce our risk exposure. Whenever you review your financial plan, here are 5 points and questions to consider: Although there is no correct time to check your financial plan, you should review it at it at least once a year (during a 4th quarter review for example) or whenever a significant life event occurs. In that sense, a financial plan becomes a living document. Additionally, if our destination changes, so should our course. Just like any “road trip” we go on, our map needs to be reviewed on a regular basis to make sure that we are still on the right course. But as my prospective client learned, if you only look at your plan once every ten years, you don’t really have a financial plan.Ī financial plan is your financial road map. Whether you are a Wealth Accumulator or about to begin your retirement, everyone needs to have a financial plan. After a long pause she replied, “Umm, about 10 or 11 years ago.” She was a year away from when she wanted to retire and a) did not know the details of her old plan and b) did not know whether the old plan put her in a position to retire safely. She answered matter-of-factly “Yes, I’ve already done that.” Then I asked my follow up question, “When was the last time you looked at it or had it updated?”. Last week while talking to a prospective client I asked, “Have you ever had a financial plan completed for you?”. When was the last time you reviewed your financial plan? ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |