Is it Time to Update Your Financial Plan?

For many of my clients, a life event or transition forces them to seek out the advice of a financial planner for the first time. You might have had a loose financial “plan” or set of expectations, but something happens to turn that plan upside down.

Some of those events are happy ones: a new job, a wedding, a new baby or a financial windfall. Others are not so happy: the death of a spouse, a divorce, the loss of a job, a medical emergency or the long term care of a loved one.

Last year we had one of the happy ones – our twins were born in November, and there haven’t been many dull moments since.

I have spent quite a lot time considering how our newly expanded family affects our financial plan. Suddenly we have a lot more to consider:

● Do we need a bigger home? (And yikes, is it time to leave New York City?)
● How much car does our family need?
● Do we have enough insurance?
● How will childcare costs and other kid-related expenses affect our budget and cash flow?
● How much should we be saving for three (!) college educations?
● Are we still on track to achieve financial independence?

These are the kinds of questions I help clients with every day. I know the financial planning process helps people take stock of where they are now, set financial goals and build a plan to reach them, because I use it myself.

Our financial plan looks different than it did a year ago, and that’s okay. Is it time to update your financial plan?