The Importance of Regular Wealth Management Check-Ins: Why You Should Review Your Financial Plan Annually

February 18, 2025

When it comes to wealth management, planning for the future is a crucial step in securing long-term financial success. However, one of the most common mistakes high-net-worth individuals make is failing to regularly review and update their financial plans. At First Western Trust, we emphasize the importance of conducting annual wealth management check-ins to ensure that your strategies remain aligned with your evolving goals, circumstances, and market conditions.

A financial plan is not static—it needs to be dynamic and flexible to respond to changes in your life, the economy, and your wealth objectives. Here’s why conducting an annual review of your wealth management strategy is essential to maintaining a successful financial trajectory.

Why Annual Wealth Management Reviews Matter

1. Adjusting for Life Changes

Life is full of unexpected events and milestones, from career transitions and family additions to changes in health and lifestyle. These events can significantly impact your financial goals and priorities.

Key Life Events to Consider:

• Marriage or Divorce: Changes in marital status can affect everything from asset allocation to tax planning and estate strategies.
• Birth of Children or Grandchildren: Expanding your family can create new wealth planning opportunities, such as setting up trusts or college savings plans.
• Career Transitions: A new job, promotion, or business venture might change your income level, which may require adjustments in your retirement savings, tax strategies, and investment approach.
• Retirement: As you approach retirement, your wealth management strategies should shift to focus more on preserving wealth and generating income for your post-working years.

Reviewing your wealth plan annually allows you to adjust for these life changes, ensuring that your financial strategies remain aligned with your current circumstances.

2. Adapting to Market Shifts and Economic Conditions

The financial landscape is constantly changing—whether it’s due to fluctuations in interest rates, tax laws, inflation, or global economic events. A well-constructed financial plan is built with the understanding that market conditions will evolve. Regular reviews help ensure your wealth management strategies remain resilient to market changes.

Market Factors to Consider in Your Review:

• Interest Rates: Fluctuations in interest rates can impact your investment portfolio, especially in areas like fixed-income and real estate investments.
• Tax Law Changes: Legislative shifts in tax laws may create new opportunities or challenges for your wealth plan, making it essential to adjust your strategies to minimize tax liabilities.
• Market Volatility: Periods of market downturns or unexpected events (such as a global recession) may require portfolio rebalancing to safeguard your assets.
• Inflation: Rising inflation can erode purchasing power, especially if your portfolio isn’t positioned to combat its effects.

Annual check-ins allow you to adjust your wealth management strategies in response to these factors, ensuring your assets remain protected and optimized for long-term growth.

3. Reassessing Your Financial Goals

As your wealth grows and your life evolves, so too will your financial goals. What was important to you five years ago may no longer align with your priorities today. Regularly reviewing your financial plan allows you to reassess your goals and adjust your strategies to stay on track.

Questions to Ask During Your Annual Review:

• Are my retirement goals still achievable, given my current assets and income?
• Am I on track to meet my estate planning objectives and ensure wealth transfer to the next generation?
• Do I need to adjust my charitable giving strategy to reflect my current financial situation?
• Are there any new investment opportunities that align with my values and goals?

By revisiting these questions annually, you ensure that your financial plan continues to reflect your evolving vision for the future.

4. Identifying Gaps in Your Wealth Management Strategy

A comprehensive wealth management plan involves much more than just investing—it includes tax planning, estate planning, risk management, and retirement strategies. Over time, gaps in your wealth management strategy can emerge, whether due to changing life circumstances, evolving tax laws, or oversight.

Areas to Assess for Gaps:

• Tax Efficiency: As income grows, tax planning strategies should be revisited to ensure maximum tax efficiency, particularly for high-net-worth individuals.
• Asset Protection: If your wealth has increased or you’ve acquired additional assets, you may need to consider updated insurance policies or trust arrangements to protect those assets.
• Retirement Planning: As you get closer to retirement, your asset allocation should shift to preserve wealth while ensuring a sustainable income stream for your post-working years.

A regular review can help identify these gaps and ensure your wealth management strategy remains holistic and effective.

5. Streamlining Wealth Management Across Professionals

Many high-net-worth individuals have multiple advisors—such as tax professionals, estate planners, insurance brokers, and investment managers—who each play a role in managing different aspects of their wealth. An annual review gives you the opportunity to ensure that all aspects of your wealth management plan are working together cohesively.

Benefits of an Integrated Wealth Management Review:

• Coordination Across Advisors: An annual check-in ensures that all professionals are on the same page, preventing contradictory advice or overlooked opportunities.
• Holistic Financial Strategy: By reviewing all aspects of your wealth plan together, you can ensure that every element—from investments to taxes to legacy planning—is aligned to achieve your long-term goals.

At First Western Trust, we facilitate comprehensive wealth management reviews to ensure all of your financial strategies are working together seamlessly.

How to Conduct a Wealth Management Check-In

An effective annual review requires a strategic approach:

• Review Financial Statements: Begin by reviewing your current financial statements, including your investment portfolio, retirement accounts, real estate holdings, and business interests.
• Meet with Your Advisors: Schedule an annual meeting with your wealth management team to discuss any changes in your financial situation, goals, or market conditions.
• Reassess Risk Tolerance: As you age and your financial situation evolves, your risk tolerance may change. It’s important to adjust your portfolio to reflect this new risk appetite.
• Update Your Estate Plan: Ensure your estate plan is up-to-date with your current wishes, especially after any significant life changes.

Partnering for Long-Term Success

At First Western Trust, we believe in building lasting relationships with our clients, offering expert advice and personalized strategies for every stage of your financial journey. Regular wealth management check-ins are a key component of maintaining your financial health and ensuring that your plan is always aligned with your goals.

Schedule Your Annual Wealth Review Today

Contact us today to schedule your wealth management check-in and ensure your financial plan is optimized for success in the year ahead. Let us help you continue to build, protect, and preserve your wealth for future generations.

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Disclaimer: This content is for informational purposes only and does not constitute investment, tax, or legal advice. Please consult your financial advisor for guidance specific to your situation.

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