To keep your financial plan on track, you need to review it any time there is a significant change in your life.
1. Job Changes
A new job with higher pay means your can make larger regular contributions to your personal investment portfolio. A decrease in pay – or losing your job – may suggest a more conservative investment stance, or a new look at your goals.
2. Change In Marital Status
When you get married you’ll probably want to review your will, as well as beneficiary designations on your insurance policies, pensions plan, and your RRSP, RRIF and TFSA. The same applies if your marriage ends because of separation, divorce or death. Getting married also means there may be spousal tax-savings strategies you can now use.
3. Major Life Events
Having a child means news responsibilities and new expenses – definite signals that you need to review your whole financial plan, especially for insurance needs. Other major life changes include buying a home, starting your own business, retiring, or becoming disable.
4. A Shift In Your Investor Profile
People change. When you’re young, you may be an aggressive investor willing to take risks in return for large potential gains. As you get older, you may be more cautious. It’s important to review your financial plan regularly to make sure it’s appropriate for the type of investor your are today, not the investor you were 5 years ago.