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The Importance of Annual Reviews for Your Financial Plan

What Has Changed Since Last Year?

Financial planning is not a one-time event, but a process of constant course corrections, somewhat like navigating at sea. You would not simply point a ship in a single direction and leave the destination up to the waves and the winds to determine. That’s because there are countless course corrections to be made if you want to arrive at your desired destination with ample supplies. Similarly, your financial plan is the map on which occasional course corrections are made.

Depending on life and tax circumstances as well as legislative and investment environments we find ourselves in, the plan provides a framework within which to observe the impact of each of these and make adjustments as required. While the frequency of reviews may vary depending on individual circumstances, an annual review serves as a critical checkpoint to ensure your plan remains on track.

Maintaining a strong and healthy financial foundation is crucial for maintaining long-term stability and achieving your financial goals.

Here are some recommendations to ensure your financial plan stays current and relevant as life happens.

  • Evaluating Progress and Adjusting Goals – Annual reviews allow you to assess the progress you have made towards your financial goals over the past year. This provides an opportunity to refine your short- and long-term goals based on changing circumstances, such as career advancements, life events or market conditions.
  • Reviewing Budget and Cash Flow – This helps you identify any discrepancies or areas of improvement, while enabling you to assess your income, expenses, savings and debt to ensure they align with your financial objectives.
  • Staying on Top of Changes – The financial landscape is ever changing, and it is essential to stay updated with the latest laws, regulations and market conditions. It provides an opportunity to review your investments, retirement accounts, insurance coverage and estate plans.
  • Maximizing Tax Efficiency – Tax laws change frequently, and understanding how they impact your finances is vital. Conducting an annual review helps you identify potential tax-saving strategies or deductions you may be eligible for.
  • Adapting to Life Changes – Life is unpredictable, and major life events such as marriage, divorce, birth or death can significantly impact your financial situation. An annual review allows you to reassess your financial plan in light of these changes.

Reviewing your personal financial plan is a prudent practice for financial well-being. By dedicating time to this annual check-up, you can ensure your financial plan remains relevant, responsive and effective in helping you achieve your desired financial outcomes.


Statistics and factual data and other information are from sources RJL believes to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities nor is it meant to replace legal, accounting, taxation or other professional advice. We are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters. The information is furnished on the basis and understanding that RJL is to be under no liability whatsoever in respect thereof. This is intended for distribution only in those jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., Member - Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd. (“RJFP”), a subsidiary of Raymond James Ltd., which is not a Member - Canadian Investor Protection Fund. When providing life insurance products, Financial Advisors are acting as Insurance Representatives of RJFP. Raymond James Trust Services are offered by Raymond James Trust (Canada) in the provinces of British Columbia, Alberta, Saskatchewan, and Ontario, and by Raymond James Trust (Québec) Ltd. in the province of Québec. Trust Services are not covered by the Canadian Investor Protection Fund. Raymond James advisors are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters.