Financial reviews: What to look at and how often

Life is all about reflection, adjustment, and exploring new ideas. At Jackson, we believe retirement planning should be the same way: rooted in confidence, but ready to adjust for what’s to come.

For many, a successful retirement plan means building tax-aware strategies, flexible portfolios, and making educated, real-life decisions. It means evaluating things like:

• What’s happening now and what’s likely to happen in the longer-term?
• Is your lifestyle costing more or less than you envisioned?
• Are you making purposeful progress, and not just financial growth?

To help answer those questions, you need a healthy level of awareness into your finances.
 

Managing and monitoring financial accounts

If you want to feel confident in your financial planning, you can gain clarity by regularly monitoring your money. Here’s how often you should check in:
 

Weekly or monthly

Bank accounts. According to MarketWatch, 42% of Americans say they avoid looking at their checking account balance out of fear.¹ But that kind of avoidance can lead to mistakes, missed fraud and scams, and stress. Establishing a routine to check your accounts should foster better financial awareness and control.

Budget. Anytime we see a study on Americans and budgeting, it seems like many people don’t bother. But if you have no idea where your money is going, you won’t feel good. If you want to be in control of your money, create a budget, live within your means, and track your spending regularly.
 

Quarterly

Retirement accounts (401(k), IRA, Roth IRA). Check for contribution progress, fund performance, and whether your asset allocations still match your risk tolerance.

Credit reports. Did you know you get one free report from each credit bureau (Equifax, Experian, TransUnion) per year? It’s a good idea to check one of them every four months — so, about quarterly, using all three bureaus.

Annuity statements. When it comes to annuity accounts, a quarterly review is generally enough. Unlike stocks or mutual funds, annuities are designed for long-term stability, not short-term gains. Schedule a log-in every few months, or coordinate with your financial professional during your regular financial review.

Speaking of that regular financial review…
 

The annual review with your financial professional

It’s dangerous to DIY (Do It Yourself) a retirement plan. If you want to turn casual aspirations into solid plans, partnering closely with a trusted financial professional can be a game-changer.

Think of it this way: If your car has an issue, do you rely on YouTube videos and whatever tools you happen to have in the garage to fix your car? Probably not, because your vehicle is a crucial part of your life and you don’t want to risk getting something wrong. The consequences could be detrimental.

Similarly, when it comes to your finances, what you don’t know can hurt you. A financial professional helps you understand the full picture and fine-tune your plan for long-term performance.

In fact, 63% of pre-retirees who completed a written retirement plan worked with a financial professional.² That’s according to a recent survey conducted by Greenwald Research.

One of the most important financial reviews you can do may be an annual review with your financial professional. This valuable meeting is crucial to developing a plan that truly reflects you.

Annual reviews usually occur toward the end of the year and can accomplish several important goals. These may include:

• Apprising your professional of new financial needs or circumstances
• Reviewing your progress toward certain financial goals and revising certain goals as needed
• Empowering you to articulate your plans and describe what you liked about your financial situation over the past year, and what you want to improve upon
• Building a stronger relationship with your financial professional

Your annual review may include a combination of these goals or any other items that are important to you. The key is that the discussion is open, honest, and productive.
 

6 steps to prepare for your annual review

To maximize this valuable time with your professional, and set a positive tone for the coming year, use this checklist before you meet:

1. Request a meeting agenda.

Having planned discussion topics for your meeting will keep it focused on key items you want to cover with your financial professional. If the agenda is prepared beforehand, you can review and add topics as needed. Identifying and reiterating short and long-term objectives is a fantastic way to get the meeting started.

2. Inventory and assemble key documents. 

Collecting relevant information before the meeting — including your tax returns, life insurance policies, and other account statements — is a great time-saver. In support of this goal, financial professionals may send a pre-meeting questionnaire or checklist.

3. Prepare questions to ask your financial professional and be an active listener.

The best meetings are those where you can be comfortable speaking freely and expressing your concerns or worries. Also, consider taking accurate and detailed notes, or even an audio recording on your phone. You’re going to get a lot of information during your review, and these notes will help keep track of everything discussed.

4. Suggest the use of graphs and charts to help clarify complicated points. 

Visualization can be a powerful tool when reviewing complex financial information. Data viewed visually can enhance how you understand your investment direction and help product offerings seem less abstract. If you are a visual learner, advise your financial professional ahead of time so they can adequately prepare. If your meeting will occur virtually, adjust your monitor and display settings ahead of time so you have a clear view of what will be presented. 

5. Update and ensure the accuracy of your beneficiaries.

Life events frequently change family dynamics. Ensuring your beneficiary designations are accurate and current is essential to the planning process. When your legacy is at stake, you never want to be out of date.

6. DWYSYWD.

After your meeting, Do What You Say You Will Do. The plans you make will ring hollow if you don’t take action and follow up on any agreed-upon steps.  Your annual review is an essential checkpoint for maintaining your financial stability. 

By following these steps, being aware of your finances, and engaging candidly with your financial advisor, you can have clarity, confidence, and control over your retirement plan. See our calculators and tools for more powerful insights into your financial journey.