5 excellent reasons why it's important to review your financial plan

When planning for your financial future, creating and setting out a plan is just the first step.

Once a plan has been devised, reviewing it regularly could be a great way of making sure you’re meeting your goals and ready to adapt to any changes in circumstances. Indeed, research by financial management firm Goldman Sachs in 2022 revealed that more than 50% of polled adults planned to adjust their financial goals in 2023 due to the cost of living crisis [1].  

Read on to find out five reasons why reviewing your financial plan could be incredibly beneficial to you and why working with a financial planner could provide you with additional reassurance and peace of mind. 

1. Review your life goals and retirement plans 

Even if your personal circumstances, like where you work, or your family life, haven’t changed in recent years, your financial goals and aspirations may have altered. It might be that you want to retire in just a few years’ time, or you have realised that previous aspirations you had might not be as achievable as you first thought. 

Taking a step back to consider what you now want in life and the money you might need to do achieve your goals could help keep your financial plan aligned to your needs. 

2. Keep track of progress 

Whether you’re making retirement plans or saving for a new home, it’s important to keep close control of your financial plan and regularly review how you’re progressing. Similarly, keeping track of your progress could also enable you to make sure that your investments continue to match your risk profile and remain on target to produce the returns you need.

Working with a financial planner that utilises cashflow planning tools could  play a key part in this as they will be able to help you identify how things like inflation may affect your finances. Seeing your long-term financial picture in black and white could help to give you peace of mind, reassuring you that you’re on track to reach your goals and financial aspirations. Alternatively, cashflow planning could highlight areas where you may need to adjust your plan. In such cases, a financial planner can help advise you on steps you could take to get back on track.

  3. Assess financial circumstances or life changes 

Changes in circumstances can influence your finances as well as your opportunities to save and invest. It could be that you have just purchased a second home, welcomed a new family member, or celebrated a pay rise in the last few months. Reviewing your financial plan could help you to incorporate any financial or life changes into your plan and find a suitable and appropriate path to progress towards your goals. 

In the event of family deaths or births, it might also be a good idea for you to update your will to reflect these changes. At Aspira, we provide support and assistance to any clients creating and adapting their wills and we offer an online will writing service that’s easy to use and update. 

  4. Identify potential opportunities and risks 

Risks and opportunities are ever-present. So, it’s important to regularly review your financial plan and look at how and why these risks and opportunities could affect it. 

Working with a financial planner could also allow you to review your current risk exposure and identify how any risks and opportunities could influence your financial decision-making in the future.

  5. Have confidence in your plan 

When you have a financial plan, it’s important to have confidence in it and know that you have a firm control over your finances and are flexible enough to adapt to any financial changes. Regularly reviewing your financial plan can help to give you peace of mind that you’re in control and able to base decisions on information that is up to date and relevant. 

Work with a financial planner to monitor and review your financial plan 

While reviewing your financial plan by yourself can help you monitor whether you’re still on track to meet your life goals, working with a financial planner could be of even greater benefit to you. As well as providing a safety net, they can also be a useful sounding board when you’re making financial decisions. Working with a professional planner could help give you added reassurance that you’re supported by someone with experience of how best to respond to any changes in your financial or personal circumstances. 

Get in touch 

If you’d like to review your financial plan and want professional advice and support, please get in touch. Email info@asprirafp.co.uk or call us on 01454 632495. 

Please note 

The information contained in this article is based on the opinion of Aspira Corporate Solutions Ltd and does not constitute financial advice or a recommendation to any investment or retirement strategy. You should seek financial advice before embarking on any course of action.

Investments carry risk. The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing. The Financial Conduct Authority does not regulate cashflow planning.

 

Source: [1] Goldman Sachs Personal Financial Management, 2022, Goldman Sachs Survey Reveals More Than Half of Individuals  Plan to Adjust Their 2023 Financial Goals Due to the Economic Environment Back To List