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6. Monitor Your Plan
Monitoring your plan is a lifelong process. It is important to remember that financial plans are not static; they should be reviewed periodically to adjust for changes in employment, family circumstances, goals, and other unexpected events. Marriage, divorce, new children, upcoming retirement, and family illness/death are the most common triggers to review your financial situation, but less obvious ones may be a desire to change careers or experiencing less comfort with risk that was previously acceptable. Over time there are also external changes, like tax legislation, that may alter recommended strategies. For instance, 529 plans changed the college savings landscape, and Roth IRAs added new opportunities for retirement planning. With hourly financial planning, this may be the most difficult step to manage. It is up to you to call a planner when your situation changes or new needs arise.
Some ideas for Step 6: If there are many things you need to implement in Step 5, you may want to schedule a follow-up planning meeting in a few weeks or months to address your progress. You may even find this useful if you have only a few tasks, as it offers a timeframe and measure of accountability.
If you have moved past the implementation step, your main monitoring options are to trust that you can recognize a financial planning trigger and set up an appointment at that time, or have regularly scheduled “checkups,” like your medical physical. These may be once or twice a year, or every few years, depending on your situation. Deciding how you would like to monitor your finances is a personal decision; what works for one person may not be what works best for you.
