How frequently should a financial plan be reviewed and updated?

A financial plan should be reviewed and updated at least annually or whenever there are significant life changes. This approach ensures that the plan remains relevant and aligned with the client's evolving financial situation and goals. Life changes such as marriage, divorce, the birth of a child, job changes, or significant market fluctuations can affect a client's financial health and objectives, making it necessary to reassess and adjust plans accordingly.

Regular annual reviews help identify any shifts in priorities or financial circumstances, ensuring that investment strategies, risk management, and savings goals are still ideal for the client's current context. This proactive stance allows for timely adjustments to the plan that can optimize financial well-being and enhance preparedness for future challenges.

Such a review schedule also fosters an ongoing relationship between the client and the advisor, ensuring that the client feels supported throughout their financial journey and is informed about their evolving financial landscape.