Fisher Investments UK

Fisher Investments UK: 3 Elements of Your Financial Life to Review Annually

If you’ve taken the important step to improve your financial life by setting goals, establishing a budget and developing a robust, long-term financial plan, you’re already ahead of many people. But, your family’s financial plan could use some regular care and maintenance. You should review some aspects of your financial life at least once a year to determine if you’re still on the path to reach your goals, or if you need a slight course correction.

By scheduling a regular assessment of your financial life, you reduce the risk of only reviewing your situation and making financial decisions after things have gone wrong, which could lead to emotionally charged choices that could hamper your chances of reaching your long-term financial goals.

Here are three basic elements of your financial life that you can check at least once a year to make sure you’re still on track.

1. Update your list of assets and liabilities

    Your financial life is dynamic and constantly changing, so it’s a good idea to take stock of both sides of your personal financial ledger—assets and liabilities—at least once a year. An annual tally can provide perspective on your current net worth and overall financial health. Plus, when you regularly revisit your financial inventory, it’s harder for valuable retirement accounts, investments or insurance policies to slip through the cracks over the years.

    To conduct this review, first look at your cash and other assets to understand all the financial resources available to you. Start with items like your retirement accounts and any other investment accounts or financial trusts. Note account balances and compare your asset allocation—the mix of equities, fixed interest, cash and other securities—against your investment plan to see if you need a rebalance to stay on target. Add any other savings or bank accounts. Whilst you’re at it, make sure the contact information you have for investment and bank accounts is up to date.

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