What Questions Should I Ask When Reviewing My Financial Plan?

Your financial plan isn’t something you create once and forget about. Life changes, markets shift, and your goals evolve. Without regular reviews, even the most thoughtfully crafted financial plan can drift off course, leaving you unprepared for retirement or major life events.

Many people avoid reviewing their financial plans because they’re unsure what to look for or worry about discovering problems they don’t know how to fix. This uncertainty can lead to years of missed opportunities and growing financial stress. Fortunately, a systematic review using the right questions can give you clarity and confidence about your financial future. Harvest Wealth Partners helps you select the right questions when meeting with a financial consultant.

How Are My Investments Performing Against Benchmarks?

Investment performance isn’t just about whether your portfolio went up or down last year. You need to understand how your investments are performing relative to appropriate benchmarks and whether they’re helping you seek your long-term goals.

Start by comparing your portfolio’s performance to relevant benchmarks. For example, compare stock investments to a stock market index or bond investments to a bond market index. Consider the level of risk involved. A portfolio with steady, moderate growth potential may be more suitable than one with higher returns but significant fluctuations, especially if financial independence is a priority.

Don’t forget to factor in fees and expenses. High management fees can significantly erode your returns over time, so compare your all-in costs to similar investment options.

How Is Inflation Impacting My Financial Strategy?

Inflation can silently erode your purchasing power, making it crucial to regularly assess its impact on your financial plan. Even modest inflation rates compound over time, potentially derailing retirement plans that don’t account for rising costs.

Review whether your investment allocation provides an adequate buffer to inflation. Stocks historically outpace inflation over long periods, while low-yield bonds can fall behind. Consider whether you need to adjust your asset allocation to maintain purchasing power.

Am I Still On Track Toward My Retirement Goals?

Your retirement timeline and income needs may have changed since you last reviewed your plan. Regular check-ins determine if you’re saving enough and investing appropriately for your desired retirement lifestyle.

Calculate whether your current savings rate will provide adequate retirement income. A common rule of thumb suggests replacing 70-80% of pre-retirement income, but your specific needs may be higher or lower depending on your lifestyle and healthcare expectations.

Review your target retirement age. If you’re behind on savings, you might need to work a few years longer or adjust your retirement lifestyle expectations. Conversely, if you’re ahead of schedule, you might have more flexibility.

Consider healthcare costs, which often represent the largest unknown in retirement planning. Medicare doesn’t cover everything, and long-term care expenses can quickly deplete retirement savings.

Are My Estate Planning Documents Current?

Estate planning isn’t just for the wealthy. Everyone needs basic documents to verify whether their wishes are carried out and their loved ones are supported. Regular reviews allow your documents to reflect current circumstances and laws.

Verify that beneficiary designations on retirement accounts, life insurance policies and other financial accounts are up to date. These designations override your will, making accuracy crucial.

Review your will and trust documents to confirm they reflect your current wishes and family situation. Major life events like marriage, divorce, births or deaths require document updates. Also, consider whether your power of attorney documents are current and whether the people you’ve designated are still appropriate choices. These individuals will make financial and healthcare decisions if you’re unable to do so yourself.

Plan Your Financial Future

Regular financial plan reviews aren’t just about numbers: they’re about verifying whether your money supports the life you want to live. By asking these critical questions annually, you’ll catch potential problems early and capitalize on new opportunities.

The complexity of financial planning means you don’t have to navigate these questions alone. At Harvest Wealth Partners, we believe in doing what’s right for each client, helping you construct a financial plan that evolves with your life. Our team can help you work through these important questions and make the adjustments needed to keep your financial plan on track. Contact us now to begin.

Asset allocation does not ensure a profit or protect against a loss.

Investing includes risks, including fluctuating prices and loss of principal. No strategy assures success or protects against loss.