The Importance of a Financial Checkup
How is the health of your company?
A financial check-up is as important as an annual physical with your doctor. Like a medical exam, a review of your finances can identify strategies to improve "financial fitness" and screen for potential problems.
It’s an opportunity to measure the progress you are making toward your goals and make needed adjustments based on your own personal situation.
An annual financial checkup is the most important part of the financial planning process. Yet many people downplay its significance.
This annual review is an opportunity for you and your financial advisor to examine your financial planning action steps, or "to do" list, and measure the progress you're making toward your goals. It's also a time to incorporate any new life changes that have occurred during the past year, the birth of a child, the death of a loved one, a new marriage, a business startup or expansion, or even a major purchase, into your financial plan to help you chart a new course, if needed, or to further affirm that you're on the right track. Remember, your life is dynamic, not static, and your financial plan should be as well.
During your annual review, you and your Financial advisor will want to revisit the building blocks of your financial plan and review your resources, goals and priorities to see what's changed. This act of monitoring and benchmarking is beneficial because you'll get an opportunity to step back from your busy life, review your goals, and confirm that your priorities remain the same. And you and your planners get the chance to reconnect to affirm that you and your planner are taking the right steps toward goal achievement or to refocus so that you don't get too far off track.
Much like your annual medical exam, an annual financial review isn't something to put off. You need to take the time to examine your financial and life goals in order to determine that you're on course to attain these goals. It's also a chance to review changes that have occurred and begin to anticipate changes that may occur in the future. And it provides the opportunity to implement any new plan of action that's been developed in light of changing situations or goals. Don't put off your review any longer, your financial health could suffer because of your neglect.