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How often should you update your financial plan?

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Over the course of your life, many things–expected and unexpected–will change. Your age, income, family status and health can all impact your long-term financial forecast. Let’s explore the reasons why–and when–you should be updating your financial plan.

Income changes
There are many reasons why your income might change. A new job, temporary unemployment, marriage, divorce, or entering retirement can drastically change the amount of money you have in your budget. Because these changes can, over time, have a significant impact on your day-to-day budget and long-term finances, it’s important to revisit and update your financial plan regularly.

Age
For most people, financial plans are designed to help achieve the long-term goal of retirement. As each year goes by, you get closer to retirement. It's important to adjust your savings and investment strategies to maximize your income when you leave the workforce.

Marriage or divorce
Major life events like marriage and divorce can have a big impact on your financial plans, and can directly affect your retirement contributions. Getting married can boost your household income and improve your financial standing in the long run, but the wedding may drain your short-term finances. Divorce can also become an income strain. In some situations, you may want to look for additional sources of income during these events, in order to maintain your current standard of living.  

Starting a family
Financial planning is vital when you start a family. You might also want to add college savings and additional life insurance to your financial plan. However, be sure to keep savings and retirement funding in your overall budget.  

Inheritance
Any time you receive an inheritance, the best advice you can take is to do nothing until you've had a chance to talk with a Financial Advisor or research your options. Look at your financial goals and decide if you should pay off debt, add a short-term certificate of deposit (CD) to your plan, or use the money to boost your retirement funds.

Market volatility
If there is one truth about the world of investments, it is that there will be ups and downs. The more volatile a market, the more it can directly impact your overall portfolio. If you’re close to retirement, these downturns can often force you to readjust your plans, either putting off retirement a few more years or rebalancing your financial plan to achieve your overall goals. 

Meet with a professional
The Financial Advisors at Addison Avenue Investment Services, a division of First Tech, can help you plan ahead, whether you’re facing an unexpected job change, career advancement, family change, or other factors that might impact your financial plan. Make an appointment today and make sure your plan is keeping up with your life.

Registered address: 1011 Sunset Blvd, Rocklin, CA 95765 │ 855.744.8585

Financial Advisors offer securities through Raymond James Financial Services, Inc. Member FINRA/SIPC and securities are not insured by credit union insurance, the NCUA or any other government agency, are not deposits or obligations of the credit union, are not guaranteed by the credit union, and are subject to risks, including the possible loss of principal. First Tech Federal Credit Union and Addison Avenue Investment Services are not registered broker/dealers and are independent of Raymond James Financial Services, Inc. Investment advisory services offered through Raymond James Financial Services Advisors, Inc.