A financial plan is more than just a budget, reviewing your investment gains/losses or even having a 180-page document that sits on a shelf or in a drawer. Your financial plan should be a living and breathing document. We have met with many clients over the years that have let us know they already have a financial plan, and we ask to review it with them. It is rare that we encounter someone with a plan that was completed recently and/or that they have actually looked at in the last few years. This is not a plan; it is merely a snapshot of their situation at a particular time.
The plan should reflect your current circumstances and address your future needs, wants and wishes. At a minimum, the plan should review your retirement, education funding, estate planning, risk management, asset management and emergency fund strategies. Ultimately, these are all fluid areas, and simply taking a snapshot of where things stand today will not define your ability to get where you want to be in the future. Some of the most important work that goes into a plan is the monitoring and updating of the plan over time.