When all systems are a 'go' you have to sometimes stop and look out the rear view mirror. Often, I see clients who are so busy chasing future dollars but they don't stop to look after the wealth that they have already created. Remember, life is dynamic not static, so once you have your financial plan in place it doesn't mean that task should be off your radar forever. As we chug along we should stop, at intervals, to re-assess the validity of our previous financial commitments. A few things to reflect are:
1) Is my Will still up-to-date? What about my Power's of Attorney, both financial and medical?
2) Is my portfolio working for me? If not, is it time to consider a different strategy....????
3) Is my retirement planning in place? Will my pension be enough? If not how much do I have to supplement?
4) What will happen if I die tomorrow? Do I have enough insurance to ensure my family is not hit by financial hardship? How much is enough?
5) Do I want to help my kids with the cost of post-secondary education? Are they thinking of going to school and staying home or are they planning to leave the family home to attend school?
6) Do I have elder care issues? What is going to happen to my aging parents/grandparents?
So how often is reflection required? I advise my clients to reflect upon these issues on an annual basis. Pick a birthday, end of the year, June 1st (half way through the year), anniversary or some other date that is going to trigger you to remember. All too often these questions get ignored and then when we are faced with issues we are often ill-prepared. After all, spending a few hours every year ensuring the wealth you have already created is well looked after is worth putting aside the potential for a few hours worth of potential future value, isn't it?
