Many investors build a financial plan with the intention of letting it run in the background. But as life changes and priorities shift, a “set it and forget it” approach can backfire.

As life changes, your financial plan can become outdated.

These plans don’t usually become outdated all at once; rather, this can happen due to everyday life transitions.

Evolving spending patterns

Lifestyle priorities change over time. A plan built around earlier assumptions may no longer match actual cash flow needs.

Lack of coordination

As wealth grows, accounts can multiply. But if these aren’t coordinated and reviewed regularly, inefficiencies and confusion can occur (even if all those accounts made sense at the time).

Changes to risk tolerance

Market performance, life stage, and personal circumstances all influence how much uncertainty someone is willing to accept. A strategy that once felt appropriate may feel mismatched years later.

An outdated financial plan comes with a cost

When your financial plan no longer reflects your priorities, the effects may not be readily apparent. Over time, it can lead to potential issues:

• Your portfolio may be unbalanced
• Beneficiary designations may be inconsistent
• Investment strategies may not align with current priorities

This may not be the result of poor planning; rather, it stems from the lack of evaluation as circumstances changed. This could cause potential long-term complications as you consider your retirement and estate plans.

When to re-evaluate your financial plan

A good approach to effective financial planning involves periodically considering the following questions:

• Do my goals still look the same?
• Have my responsibilities changed?
• Does the plan’s structure still align with my lifestyle and values?

These questions are especially relevant as families move through transitions such as retirement, multigenerational planning, or lifestyle changes.

Financial Planning with Chatterton & Associates

Over time, an outdated financial plan can cause potential issues as you approach retirement, develop an estate plan, or build your legacy for future generations.

If you’d like to evaluate your current financial plans and how they can support your needs now and into retirement, we’re here to help. Contact us today to discuss your financial situation.

Sincerely,

The Team at Chatterton & Associates