Broker Check
Why Take The Time For An Annual Financial Review?

Why Take The Time For An Annual Financial Review?

October 04, 2017

As we head into Q4, it’s a great time to schedule an annual financial review with your Advisor. We get it – we’re probably not on the top of your priority list, but we do want to offer our expertise when it comes to maximizing the impact of your financial year, and preparing for a successful year ahead. Think of your annual financial review as a routine visit similar to seeing your physician: a quick check-up can keep you on-track for lifelong health and wellbeing.

What Is The State Of My Financial Health? 

Many people think that once they’ve “set up” their investment portfolio, insurance policies, and retirement account that they can just let it ride. Those who are tuned in to their financial wellbeing will want to know a few things on an annual basis:

  • How did my investments do this year?
  • Am I on track to retire when I planned?
  • Do I have enough insurance, and the right insurance, based on the state of my life today?
  • Have any tax laws changed that will positively or negatively impact my plan?

My Life Has Changed – Does My Financial Plan Need To?

There are so many things that can change over the course of a year! For example:

  • You’re pregnant or have a new baby
  • Your income significantly increased or decreased this year
  • You’re going through a divorce
  • You’ve experienced the death of a loved one
  • You made a large purchase, like a new home or rental property
  • You’ve taken on the role of caregiver for your parents, or for grandchildren

When things in your life change, it’s a good practice to review your financial plan, and make changes based on your new lifestyle and goals. This doesn’t necessarily mean spending more of your monthly take-home pay to cover the gaps. When you work with an advisor at Du Charme Wealth Management, we’ll work with you to shift your spending to meet your personal financial goals.

For instance, if you’ve been putting $300 per month into a retirement account, maybe we shift $50 of that to an education fund for the new baby, or put a percentage of it into a life insurance policy to make sure your family is cared for if something should happen to you. We know that life happens, and we want to help you feel secure in your financial situation today and in the future.

Am I Still On Target To Reach My Financial Goals?

Inevitably things will change in your life. Younger clients, who one year may be fully committed to saving for an early retirement, might have a child in the picture the very next year, which means saving for education may become a priority. And for those clients nearing retirement, changes in the market can have a significant impact on their short-term goals and projections. 

As you review your current situation with your Wealth Management Advisor, you’ll want to discuss a few things to make sure you’re still on the right track:

  • Asset re-allocation and re-balancing – is your money still invested appropriately for your current goals and risk tolerance?
  • Are there any new products or tools that would benefit me and my current financial situation and goals?
  • Are we clear on my current short, medium, and long-term goals, and have we explored all opportunities to achieve them? 

It’s important to touch base with your advisor annually to make sure that your money is working for you in the most productive ways, to help you reach your goals and dreams. At Du Charme Wealth Management, we pride ourselves on our customer service, and look forward to connecting with each and every one of our clients throughout the year.