Re-view, re-vise, and then re-engage in the process. We must keep our eyes focused on our goals, providing regular and continuous supervision of the results, and making adjustments as needed. We will go over monitoring practices for the various financial planning subject areas later. For now, here is general advice.
Review your goals.
Are your goals Specific, Measurable, Action-oriented, Reasonable, and Time-bound? Affirm or adjust them. Then, evaluate how close you are toward achieving each one. The best way to review your goals is in terms of a percentage. This way, we can measure progress, and quantify how far we have come and how far we have to go.
Update financial statements.
Review the Important Document Checklist for new data to gather. Read your Cash Flow Statement, Net Worth Statement, and Notes. Photocopy the original. Take a red pen. Write the current date and mark any changes from the previous report. Note new accounts and identify property titles. Update account balances and note if they have increased, remained unchanged, or decreased. Identify the percentage. Note if you purchased or sold assets. Be sure to identify dates and sources referenced. Prepare new financial statements. Share a copy with others involved in the financial planning process. File your original for the next review.
Examine the plan.
Review the accuracy of assumptions, steps taken, and steps to come. Compare and contrast. Share findings with others who have a stake in your success. Get independent, unbiased counsel from professional fiduciaries.
Dig into details. Are the results positive, neutral, or negative? Get the facts. Know your numbers.
Some reasons for making modifications include:
QUESTION: When was your last financial review?
Chris Bryant is an American financial advisor.