How Often Should I Review My Financial Plan?

How Often Should I Meet with My Adviser, and When Should I Update My Plan?

A well-crafted financial plan is the cornerstone of long-term financial success. It provides a roadmap for reaching your goals—buying a home, funding your children’s education, building wealth, and achieving a comfortable retirement. But even the most carefully designed plan can become outdated as life, markets, and priorities evolve. That’s why regular reviews and timely updates are crucial.

In this article, we’ll explore how often you should review your financial plan, how frequently to meet with your financial adviser, and the key times to update your plan to ensure it always reflects your current situation and future aspirations.

Why Reviewing Your Financial Plan Matters

Your financial plan is a living document—not a one-time project. While creating a plan is an essential first step, keeping it relevant is what ensures lasting success.

Regular reviews help you:

• Stay aligned with your goals: Your objectives may change as life progresses. A periodic review keeps your plan in sync with your evolving aspirations.

• Adapt to market and economic shifts: Interest rates, inflation, and investment performance can affect your projections. Adjustments can help you stay on course.

• Address major life events: Marriage, children, a new job, or unexpected expenses can significantly change your financial picture.

• Stay on top of legislation changes: Tax laws, retirement contribution limits, and estate planning regulations change frequently.

• Maintain peace of mind: Knowing your plan remains realistic and up to date reduces anxiety and helps you make informed decisions confidently.

Simply put, reviewing your financial plan ensures that you’re not steering toward outdated goals using inaccurate data.

How Often Should You Review Your Financial Plan?

There’s no one-size-fits-all answer—it depends on the complexity of your finances, your stage of life, and how much your circumstances are changing. However, most experts recommend a comprehensive review at least once a year.

Here’s a general guideline:

1. Annually: The Comprehensive Review

An annual review allows you and your adviser to assess progress, evaluate performance, and realign with your goals. During this review, you’ll typically:

• Revisit short- and long-term goals.

• Update your income, expenses, and savings levels.

• Evaluate investment performance relative to benchmarks.

• Reassess your risk tolerance.

• Check insurance coverage and estate documents.

• Review tax strategies and retirement savings contributions.

Even if everything seems to be on track, an annual review serves as a proactive checkpoint to ensure nothing slips through the cracks.

2. Quarterly or Semiannual Mini-Reviews

If you have complex finances or significant assets under management, consider meeting every three to six months. This can be especially helpful if you:

• Own a business or multiple properties.

• Have a large or volatile investment portfolio.

• Are approaching a major financial goal like retirement.

• Want to track progress on specific milestones more closely.

Shorter, focused check-ins help you stay agile and make small course corrections rather than waiting for bigger issues to appear.

3. After Major Life or Economic Changes

Sometimes, you shouldn’t wait for your next scheduled review. Certain life events or market changes demand immediate attention. We’ll cover these triggers in more detail later, but examples include a career change, marriage, inheritance, or market downturns.

In summary, most people benefit from a comprehensive annual review plus additional updates as needed when life circumstances shift.

How Often Should You Meet with Your Financial Adviser?

The frequency of meetings with your adviser depends on your financial situation and your level of involvement. Generally, it’s best to have:

1. A Major Meeting Once a Year

This is your deep-dive session, where you review every aspect of your financial plan. It’s an opportunity to evaluate investment returns, reassess goals, and discuss tax and estate strategies. This meeting often coincides with year-end or the beginning of a new year, when you have clear financial data from the previous year and can set new objectives for the next.

2. Quarterly Check-ins (Optional but Beneficial)

Quarterly check-ins—by phone, video call, or in-person—help maintain momentum and accountability. These shorter sessions can focus on topics like:

• Reviewing recent investment performance.

• Monitoring savings and spending habits.

• Addressing market volatility or adjusting allocations.

• Reviewing tax strategies ahead of deadlines.

Regular contact fosters a stronger relationship with your adviser and ensures that small adjustments happen in real time.

3. Meet When Life Changes

Beyond scheduled meetings, you should reach out to your adviser whenever a major event affects your finances. Examples include:

• Marriage or divorce.

• Birth or adoption of a child.

• Career changes (promotion, job loss, or starting a business).

• Buying or selling a home.

• Significant inheritance or windfall.

• Health issues or long-term care planning.

• Retirement or nearing retirement.

Your adviser can help you understand the financial implications of these events and adjust your plan accordingly.

In short, meet at least once a year—and more often if your life or the markets experience substantial changes.

When Should You Update Your Financial Plan?

Knowing when to update your plan is as important as knowing how often to review it. Updates are necessary when the assumptions your plan is built on no longer hold true.

Here are the most common times to revise your plan:

1. After Major Life Events

Life changes are the biggest reasons to revisit your plan. Common triggers include:

• Marriage or divorce: Joint finances, shared goals, and new tax considerations often require a full overhaul.

• Birth or adoption: You’ll need to plan for childcare, education savings, and insurance coverage.

• Career changes: A new salary, different benefits, or self-employment can dramatically alter your financial trajectory.

• Retirement: Shifting from accumulation to income management requires rethinking investments and withdrawal strategies.

• Loss of a loved one: Inheritance, estate adjustments, and emotional considerations may all require financial recalibration.

• Health changes: Unexpected medical issues or long-term care needs can impact savings and insurance planning.

These are times when it’s vital to update your plan quickly—don’t wait for your annual review.

2. When Your Goals or Priorities Change

Your financial plan should evolve with your aspirations. Perhaps you’ve decided to buy a vacation home, start a business, or retire earlier than expected. Any change in life priorities—big or small—means your plan should reflect your new vision.

Similarly, if you’ve already achieved a major goal (like paying off your mortgage), it’s time to redirect resources toward your next objective.

3. When Your Financial Situation Shifts Significantly

Your income, expenses, or asset levels may change unexpectedly. Updates are essential when:

• You receive a large inheritance or windfall.

• You experience a major loss, such as a job layoff or business downturn.

• Your expenses rise or fall substantially (for example, after paying off student loans or sending a child to college).

• Debt levels change, affecting your cash flow and risk profile.

Each of these scenarios can alter your financial projections and require a new strategy.

4. When the Market or Economy Changes Dramatically

Volatile markets, rising interest rates, or high inflation can throw off even the best-laid plans. Your adviser can help you rebalance your portfolio, adjust return assumptions, and explore new investment or income strategies.

For example, after a market downturn, you may need to review your asset allocation or increase savings to stay on track. Conversely, during strong market growth, it may be wise to lock in gains or reassess your risk exposure.

5. When Tax Laws or Regulations Change

Tax policy shifts can affect everything from your retirement contributions to estate planning. For example, changes to contribution limits, capital gains rates, or inheritance tax thresholds might mean new opportunities—or new risks.

Your adviser and tax professional can help you adapt your plan to maintain efficiency and compliance under the latest rules.

Signs It’s Time to Revisit Your Financial Plan

Even outside major events, certain red flags suggest it’s time for a closer look:

• You haven’t reviewed your plan in over a year.

• Your investment returns don’t align with expectations.

• You’re feeling uncertain about your financial direction.

• You’ve accumulated new debt or drained emergency savings.

• You’re unsure whether you’re still on track for retirement.

If any of these sound familiar, it’s time to schedule a review—even if your next one isn’t technically due yet.

How to Conduct an Effective Financial Plan Review

A productive review is about more than just checking numbers—it’s about aligning your finances with your values and goals. Here’s how to make the most of it:

1. Gather Updated Information

Before your review, collect:

• Bank and investment statements

• Recent tax returns

• Insurance policies

• Debt balances

• Pay stubs or business income reports

Accurate data ensures meaningful analysis.

2. Revisit Your Goals

Ask yourself:

• Have my priorities or timelines changed?

• Do I still feel confident about my short- and long-term targets?

• Are there new goals I want to add?

3. Assess Performance and Progress

Review how your investments, savings, and spending align with your plan. Are you on track? Falling behind? Outperforming projections? Discuss these trends with your adviser.

4. Evaluate Risks and Protection

Make sure your insurance, estate plan, and emergency fund still match your needs. A strong protection plan shields your wealth from unexpected shocks.

5. Adjust and Recommit

Once updates are made, document them clearly. Set measurable milestones for the coming year and commit to the next review date. Treat your financial plan as a living document that evolves with you.

The Role of Technology in Financial Plan Reviews

Today’s financial tools make reviewing and updating your plan easier than ever. Many advisers offer secure online dashboards that let you:

• Track investments and net worth in real time.

• Run “what-if” scenarios (e.g., retiring early or buying a new home).

• Monitor spending and cash flow automatically.

• Receive alerts when you drift off course.

Leveraging technology can help you stay engaged and informed between meetings, turning your financial review into an ongoing process rather than a once-a-year event.

The Bottom Line

A financial plan is only as good as its relevance. Review it at least once a year, meet with your adviser regularly, and update it whenever life—or the world around you—changes significantly.

Think of your financial plan like a GPS for your financial journey: it only works if it reflects where you are and where you’re going. Regular check-ins ensure you’re always heading in the right direction, no matter how the road ahead twists and turns.

By keeping your plan up to date, you’ll not only make smarter decisions—you’ll also gain confidence and clarity in your financial future.