Six Smart Questions for Your Financial Plan This Spring

Small changes implemented at the start of the year can yield big dividends down the road. As we clean out closets and say goodbye to winter, spring is a perfect time to refresh your plan and engage your financial advisor in meaningful conversations.

A spring refresher is not meant to reset your entire financial plan, but instead to reengage your intent with your plan and set yourself up for the year before time gets away from you. The six questions below can spark meaningful conversations and set you up for a rewarding financial year.

1. Should I adjust my savings goals this year, and did I meet last year’s targets?
   Savings drives nearly every outcome — retirement readiness, goal planning and investment strategy. It’s important to review if you saved what you anticipated last year and look at what your targets are for this year. This is an excellent time to revisit your 401(k) contributions and other automated savings and see if small, incremental increases makes sense.
2. What gaps should I look for in my financial plan?
   Before focusing on tactics, identify if there are any missing pieces. Gaps in insurance, estate planning or cash flow management are examples of things that can undermine an otherwise strong plan. Set a small target for the year and do your best to narrow your focus for success. Working with a CFP® professional can provide an unbiased view on what top gaps should be covered and allow you to spend your energy in those areas.
3. What steps can I take now to potentially reduce my taxes this year, including new strategies I should consider?
   Taxes are often the most immediate and controllable lever. Acting early in the year and understanding your options can allow you to get ahead of Uncle Sam. Your financial advisor can guide you on ways to potentially reduce taxable gains or income, as well as highlight any new tax rules or planning opportunities that may affect you.
4. Are there any changes in interest rates that can impact my plan?
   Interest rates are ever fluctuating, and this is a great time to see if you can improve your plan as they change. Does refinancing your mortgage make sense at this time? Or are there higher yielding options for your savings accounts?
5. Is my portfolio properly balanced with the right level of risk for my goals and time horizon?
   Once savings, structural planning and tax strategies are in order, investments should reflect your risk capacity and long-term objectives. Spring is a great time to review if your risk tolerance has changed and understand if a portfolio rebalance is appropriate.
6. Are there financial opportunities or risks I might be overlooking as the year progresses?
   This is the classic “what did I miss” question. This open-ended question is valuable but belongs last because it builds on the clarity created by prior questions. Your financial advisor may have more strategies and advice based on this discussion and their experience with other clients they serve.

Remember, financial planning isn’t a once-a-year activity. It’s an ongoing process, and spring is a natural reminder to pause, review and refresh. A meaningful conversation with your financial advisor using these six questions can help ensure you’re not only on track but optimizing the year ahead.