How often should I review projections for my long-term financial plan?

Do you ask yourself “When my financial advisor provides me with a long-term projection for my financial plan, how often should I review the projections?” This episode’s “Ask the Advisor” question is answered by AMR’s Lead Financial Planner Scott Birmingham.

Many factors go into making a financial plan, including income, expenses, comfort with the market, goals (retirement date, helping grandkids, travel, etc.).

Scott encourages you to make a financial plan with goals so you will be putting your money towards the things in life that matter to you. Some of the top reasons that people don’t meet their financial goals in retirement are:

• Spending too much
• Not taking inflation into account
•           Not considering taxes
•           Not saving for capital expenses (e.g., new car, etc.)
•           Not planning for unexpected health issues

Scott develops financial plans for hundreds of individuals each year. The Monte Carlo software that he uses runs thousands of simulations on a portfolio to determine their probability of success. He suggests that you review your plan with your advisor annually or more often if significant changes occur.

If you need help with your financial plan, contact us at (866) 771-8901. To learn more about Asset Management Resources, visit AMRfinancial.com.