Everyone has heard the quote that "no one plans to fail; they just fail to plan." And on one level, that is certainly true. People often do fail to plan adequately, especially for something so far off and intangible as retiring from their 9 to 5 job. Certainly, if you’re reading this and we already work together, we have engaged you in planning for your biggest goals.
But what's important about continuing to plan each year? Do the numbers really change that much? And why do these annual check point meetings and mid-year check-in's each year?
Here is the reason: everything might look okay from a numbers perspective when you are eyeballing it. But when you peel back the onion, there is usually more to uncover. Often there have been changes to your retirement plan at work that need to be reviewed; or you have been thinking about retiring sooner - or perhaps later and then working part time. We've often uncovered that the first budget we review isn’t really the budget that will be needed in the first few years -often people spend more in the first three years of being retired.
So those are some basic reasons to have checkpoints and reviews annually.
But there are other reasons as well. What if, through no fault of your own, your investment portfolio isn’t generating the returns needed? What if there are small tweaks that can be done to the portfolio that would improve your situation? Or, what if there have been changes in your family make-up, a new son or daughter in-law, new grandchild, etc., has entered the picture. Conversations and planning might need to be discussed. And let's not forget about tax law changes. Changes with the laws around Required Minimum Distributions and the ages at which they need to occur.
Does your estate plan need to be updated with these new family dynamics? Does your insurance need to be reviewed and changed or updated? How long has it been since you reviewed your auto and homeowners’ coverage and if you might be able to get a better rate elsewhere or better coverage with the same carrier? Isn't this worth the conversation and the time to uncover these issues?
These are all reasons to engage a professional advisor at least annually to make sure that you are doing the absolute best that you can. If you find out that you are doing everything right - then that's perfect. You are on track or will be soon. There is peace of mind in knowing that.
If you and your advisor aren't doing this, then maybe it's time to start. Begin by making a list of everything that’s occurred in the last year or two that might impact your goals in the long term. It's always helpful to start with a list. Then share it with your advisory team and begin working on it. You will never regret the peace of mind and clarity that knowing the next steps can bring. Begin today!
__________________________________________________________
Alex Bishop, CRPC®, MS, is a Private Wealth Advisor and Franchise Owner with Bishop Financial Partners, a private wealth advisory practice of Ameriprise Financial Services, LLC in Huntersville, NC. He specializes in fee-based financial planning and asset management strategies and has been in practice for 23 years. To contact him, https://www.ameripriseadvisors.com/alex.h.bishop or alex.h.hishop@ampf.com.
Ameriprise Financial cannot guarantee future financial results.
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.
Ameriprise Financial Services, LLC. Member FINRA and SIPC.
© 2023 Ameriprise Financial, Inc. All rights reserved. 6014318ACMR1023
Read more articles by Alex Bishop