How Often Should You Review and Update Your Financial Plan?

Bumgardner Morrison |

A financial plan is not something you create once and forget. Life changes, markets shift, and personal goals grow over time. A plan that worked a few years ago may no longer match your current situation.

 

Here’s how often you should review your financial plan, what events call for updates, and what areas deserve attention during each review.

Reviewing Your Financial Plan Annually

Most people should review their financial plan at least once a year. An annual review helps confirm that your goals, income, savings, and investments still align. It also gives you time to adjust for changes in tax rules, market performance, or personal priorities.

 

During this review, you should look at progress toward goals such as retirement savings, debt reduction, and major purchases. Even if nothing major has changed, a yearly check keeps your plan current and realistic.

Updating Your Plan After Major Life Changes

Some events require a financial review right away, not at the next annual check. These changes often affect income, expenses, or long-term goals. Waiting too long can create gaps or missed opportunities.

 

Common life events that call for an update include:

  • Marriage or divorce
  • Birth or adoption of a child
  • Job change, promotion, or loss of income
  • Starting or selling a business
  • Receiving an inheritance or a large bonus

 

Each of these situations can affect cash flow, taxes, insurance needs, and future planning decisions.

Adjusting Your Plan as Your Goals Change

Goals often shift as life moves forward. What mattered in your thirties may not matter in your fifties. A financial plan should reflect these changes clearly.

 

You may start with goals focused on growth and later move toward stability and income planning. Reviewing your plan helps confirm that your savings and investment approach still fits your current goals and time horizon.

Reviewing Investments and Risk Tolerance

Risk tolerance is not fixed. It often changes with age, income stability, and personal comfort. Market swings can also change how people feel about risk.

 

A review allows you to check whether your investment mix still matches your risk level and goals. This does not mean reacting to short-term market moves. It means confirming that your strategy remains suitable for your long-term plan.

Checking Tax and Retirement Strategies

Tax rules and retirement limits can change from year to year. A regular review helps identify adjustments that may improve tax efficiency and savings growth.

 

This review should include retirement accounts, contribution levels, and withdrawal plans if you are nearing retirement. It also helps confirm that your strategy still supports your future income needs.

Coordinating Reviews With a Financial Professional

Working with a financial advisor can bring structure to the review process. Advisors often schedule regular reviews and track changes that affect your plan. They also help explain how market conditions or rule changes apply to your situation.

 

Regular reviews support clarity and control. They help your financial plan stay aligned with your life, your goals, and your long-term direction.

 

Take control of your financial future with guidance you can trust. Connect with Bumgardner Morrison & Co LLP to review your financial plan, address current challenges, and build a clear path forward. Schedule a consultation today and start making confident, informed financial decisions backed by experienced professionals.