Managing your financial plan is a time-consuming process but it is worth doing.
2 min read
I just completed my family’s annual review of our financial plan and portfolio - something I do every year. To put it bluntly... working on your own plan is hard work!
Here are the key takeaways I thought I’d share to help you:
1. This process is time consuming, but important in order to put you on a path toward achieving your goals. Don’t talk yourself out of doing it – it is too important.
2. Follow a process. In my case, I treat my family’s financials as I would a client’s, using the same tools to evaluate and develop recommendations. To do this, I update:
Our Financial statement
Our Cash flow statement
Review our risk profile – to make sure I am comfortable with how we are invested and the level of risk in our portfolio
And review our written goals
3. Once you have this, you can assess where you are relative to your goals – and what adjustments to make. Identifying the changes to make can be the hardest part.
4. Also, don’t forget to review your portfolio to make sure that it is:
Allocated in line with your risk profile.
Also be sure to rebalance your portfolio. It’s hard to sell high-performing investments – and equally difficult to purchase in areas that have underperformed – but it is important to keep your portfolio balanced so that you sell high and buy low.
I can tell you that is a time-consuming process, but it is worth doing.
For those who take the time and follow a process to manage your financial plan – well done!
However, if you find you don’t want to do it, don’t have the time to do it – or don’t feel comfortable enough to do it, give us a call. We are happy to see how we can help.