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Financial reviews – vital for reaching your financial destination

Financial planning should never be considered a case of ‘set and forget’. To keep your finances on an even keel so you may reach your financial destination, despite life’s ups and downs, ongoing financial reviews are vital.

In this article, we look at the importance of attending your financial review meetings, and why sharing changes in your circumstances, even small ones, can have a significant effect on financial outcomes as you navigate your way to financial prosperity. 

In its simplest form, financial planning begins with understanding your current situation and your financial position. With that established, the next step involves developing a picture of where you want to be in the future.

Getting from now to the future is the crux of your financial plan. But it doesn’t end there. The key to achieving value from financial advice lies in ongoing reviews with your financial adviser.

Committing to the journey

It’s hard to fully grasp the lifestyle changes that lie ahead when you’re just starting out in your career. Likewise, it can be difficult to see the financial light at the end of the tunnel when you’re paying off a mortgage and managing the costs of raising kids.

But for those who have had the foresight to implement a financial plan early, life can feel like a bright new day when children finally leave home and the mortgage has been paid. Some describe it as if a fog has finally lifted when they reach their 50s and experience a newfound sense of financial freedom.

While there may have been a few detours along the way, if you commit to the journey and remain accountable, it’s very likely that your financial goals will be achieved.

Holding your plan to account

It may only be a one-hour meeting once a year, but the insights gained through financial planning reviews could be worth a fortune to your future self. It’s during these catch ups that you’ll see the progress you’ve made and the results of well-advised decision making.

Even more important is the opportunity they provide to discuss details about your lifestyle and any changes that are likely to affect your financial goals.

A lot can happen in a year. Perhaps you’ve bought a property, been diagnosed with an illness, received a windfall such as an inheritance, married, divorced or you might be expecting a baby or perhaps an unexpected event (such as a global pandemic) has had a big impact on your line of work.

Your financial adviser will help you assess the likely impact of such changes on your life, and your finances. Even if the financial significance hasn’t occurred to you yet – the value of your adviser relationship lies in our ability to recognise possible benefits and issues, and if necessary, amend your plan and financial strategy so it continues to align with achieving your individual goals.

Next steps…

Consider any changes – both major and minor – that may have affected you and your family over the last 12 months, then raise them in your review.  

This is important because changes to your personal circumstances, even seemingly insignificant ones, can affect your day-to-day cashflow and living expenses. They can also have an impact your tax position, debt management, insurance, investments, superannuation and retirement planning, as well as your estate plan and the financial legacy you wish to leave.  

Discussions with your financial adviser at review time can also alert you and your other advisers, such as your accountant or solicitor, to the need for action. Aligning all your affairs – legal, tax and business – with your financial plan provides a bigger picture view of your overall financial life, which is important for achieving the best possible outcomes for you. 

To discuss your financial plan and for help navigating your financial future, please contact Blue Harbour Financial Partners on 07 3821 1161 or email office@blueharbour.com.au

At Blue Harbour, we are known for helping everyday Australians to PLAN and GROW their personal prosperity, PROTECT what’s important, and RETIRE to the lifestyle of their choice.

Blue Harbour Financial Partners and its advisers are Authorised Representatives of Fortnum Advice Pty Ltd ABN 52 634 060 709 AFSL 519190. This article is general advice only and does not take into account your objectives, financial situation or needs. Please consider your own circumstances and whether the advice is right for you before making a decision. Always obtain a Product Disclosure Statement (PDS) before making any financial decisions in relation to acquiring a product.

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