Did you know that October is Financial Planning Month? While this serves as a great reminder of the importance of setting financial goals and planning financial strategy, it is also good to remember that you do not have to wait for a special occasion to revisit your retirement strategy.
So, the question remains: When should you make changes in your retirement plan?
First, a major change in your career is a good time to talk about your strategy. That change can be getting a new job, changing jobs, or being laid off. It can also be a promotion or a raise. Whether or not you've had a change in your main job, starting or selling a business enterprise is another cause for conversation.
A major family change such as marriage, divorce, birth, and death is also a time to reconnect with your fee-only financial professional. Essentially, these events are situations in which your beneficiaries might change. Not all "triggering changes" are major, however. It could be as simple (or complicated) as moving to another state, country, or even just up the street. If one of your family members has become a caregiver, or if your own health (physical or mental) has deteriorated, this could be an important conversation starter. Other events which call for reviewing your retirement plan will happen naturally - when you or your spouse turn the key ages of 59, 65, and 70½.
Many of these conversation-worthy situations are financial in nature. For example, if your risk capacity has changed. What does that mean? It means a change in your ability to weather a financial risk, such as having more cash or wealth at your disposal through some sort of windfall. This can also go in the other direction if you experience a considerable loss. Another consideration is whether the value of your assets has changed, altering your wealth profile for good or for ill. How about gifting, whether within your family or to a charity? A significant gift, such as a philanthropic endeavor, would be a reason to look at your strategy. Have you purchased or sold a major asset on the level of a house or business? How about a major change to your debt profile, whether it's an increase or a decrease? It can even be as simple as having a major change of mind about your estate strategy, including changing beneficiaries or altering gifts you intend for charities and other entities.
There are other reasons to take another look at your financial strategy that may have nothing to do with your financial situation directly but instead relate to outside factors. A major change in tax policy or law is one example. Or maybe you've had a significant loss from fire or weather events.
Finally, there's always the possibility that it's been a year or two and it's just time to look over your strategy and see if there's anything that needs your attention.
Whatever the reason, large or small, your fee-only financial planner will be more than happy to help you through whatever concern or transition you're facing.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.