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How often should you meet with your financial planner? Almost any advisor will say at least annually. Many clients, however, believe they only need to meet with their financial planner when they have a specific need, when something financially requires attention.
I recently had a conversation with a client of another planner that really highlighted this mindset. She shared, “I would hesitate to schedule a meeting with my planner if there was nothing going on, no real problems, nothing really new in my life. I would feel guilty, like I was taking up their time when it could be better used by someone else who really has an issue.”
This sentiment is not uncommon among my clients. They often feel that if everything seems fine, there’s no reason to schedule a meeting. However, most financial planners recommend an annual financial planning checkup, regardless of whether there’s an immediate need. Why? It’s much like an annual medical wellness check. You might feel perfectly healthy and not notice anything wrong, but that doesn’t mean there isn’t an unidentified issue.
An annual physical can catch high blood pressure, high cholesterol, or other silent health risks before they escalate. Your financial health is no different. The purpose of a wellness check is to detect problems before they become serious, ensure you’re on track, and make any necessary adjustments.
Here are some of the benefits of an annual financial checkup:
1. Early detection of problems. An annual financial review meeting can reveal potential risks, such as a needed change in asset allocation, changes in tax law, or an outdated estate plan. By identifying these early, you can act before they become significant problems.
2. Reassessment of your status. Life changes over time. Just as your doctor may adjust your treatment or lifestyle recommendations, your financial planner can suggest modifying your financial plan to reflect potential job changes, shifting family circumstances, the needs of aging, or evolving goals. Regular reviews help to keep your financial strategy aligned with your current situation and long-term needs.
