A financial plan is typically designed in a manner so that you can attain your investment goals within the preferred timeframe. Thus, the conventional wisdom is one should not look at their financial plan frequently. This is because looking at it too frequently tempts you to swindle with your investments, which can risk your financial goals. As much as this is true, Joseph stone capital believes there are times when it becomes absolutely necessary to review your financial plan.
A salary hike is a yearly event, and it is typically taken into account while making a financial plan. Thus, it is natural to review your financial plan once each year when the salary increment occurs and make some minor tweaks in your investments. But there are other key events like – change of job, promotion, long sabbatical, job loss, early retirement, etc. when the proportion of your income may alter quite drastically. Under such circumstances, your financial plan would need a close review. As much as you need to ramp up your investments in case of a promotion or salary hike because of a job change, you may need to scale down your investments during hard times.
During milestone events, our priorities change to some extent, one may want to review his/her financial plan to add more financial objectives.
Another instance where it is an absolute necessity to review the financial plan is when someone is choosing for a loan for a big purchase such as a home or a property. You need to review your portfolio before applying for a loan and also after the EMI begins. Now, before applying for a loan you must look at your assets to evaluate how much you would like to put down as the down payment. Meanwhile, as the EMI begins, you must once again review your financial plan to understand how much you can invest for other goals as your expenses would be increasing owing to the housing loan.
Joseph Stone Capital believes that a financial plan is made based on your financial goals which assumptions are considering your present situation. Now with time and situation, priorities in life change. These are the times when one must revisit their financial plan and make essential adjustments. This will make sure that you are not financially stressed but at the same time able to attain your life goals in an apt manner.
Company Name: Joseph Stone Capital LLC
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State: NY 11501
Country: United States