“A goal without a plan is just a wish.” – Antoine de Saint-Exupéry
Careful review is a part of good financial stewardship. It helps you know if you are on the right track, allows you to adjust your goals, and helps to ensure that your actions agree with those goals.
Many people spend more time picking out their cell phones, clothing, and cars than they do making sure they are on track for retirement. But making sure that you have enough money to live on in retirement is essential. Knowing you have a solid, long-term plan helps minimize the displeasure of the ups and downs of the stock market by helping you stay focused on what really matters.
Take a few minutes each year to make sure that your financial goals – and the investments that support them – are still on track. Since the time you began investing, things may have changed in your life. You may have different goals, and therefore you may require an adjustment to your earning, spending, saving, giving and/or investment approach(es).
Two other items to consider, taxes and insurance. Look to see where you may be paying extra taxes. Plugging up tax holes could save you a bit in taxes year after year. You may also find that your insurance needs have changed. Life changes, such as a birth, death, marriage or divorce, can change the amount or type of coverage you need as well as your beneficiary choices.
An annual review often takes less time that it takes to choose your next phone and cell plan. Take the time to help ensure that you and your family are on the right track.