A Financial Plan Assessment is an extremely versatile tool that can be carried out at any stage of life; however, there are specific phases and circumstances in which it becomes particularly strategic. Below are the principal moments at which it is advisable to evaluate or review one’s financial plan.

At the Start of One’s Working Career

When entering the world of work, a critical phase opens for laying the foundations of a sound financial future. A Financial Plan Assessment helps to:

  • Establish clear savings and investment objectives;
  • Create a sustainable budget to avoid over-indebtedness;
  • Make use of long-term financial instruments, such as supplementary pension plans or compound-return investments.

At this stage, even small steps can have a significant impact on the future.

Before Major Changes in Personal Life

Events such as marriage, the birth of a child, or the purchase of a property bring with them important changes at both a personal and a financial level. At these moments, a Financial Plan Assessment is essential in order to:

  • Plan for extraordinary expenditure;
  • Ensure adequate financial protection for the family (e.g. life insurance and education savings plans for children);
  • Adapt the financial plan to new priorities.

As Retirement Approaches

Retirement planning requires careful attention and well-defined strategies, particularly when one is within a few years of leaving employment. An FPA at this stage assists in:

  • Calculating the income required to maintain the desired standard of living;
  • Verifying whether the resources accumulated (e.g. pension funds, savings, investments) are sufficient to cover future needs;
  • Optimising the investment portfolio to reduce risk and preserve capital.

Following Significant Changes to Income or Wealth

A sudden change in one’s financial situation — such as an increase in income, an inheritance, the sale of a property, or a personal financial crisis — is the ideal moment for an FPA. This makes it possible to:

  • Realign the plan with updated objectives;
  • Protect and enhance the value of new assets;
  • Address potential critical situations, such as a loss of income or an increase in liabilities.

When New Priorities or Objectives Emerge

Objectives sometimes change: an entrepreneurial project, relocation abroad, or a desire for greater financial freedom may call for a comprehensive review of the plan. An FPA ensures that every new decision is underpinned by a robust strategy.

Why Act Now?

Regardless of timing, conducting a Financial Plan Assessment is a decisive step towards securing one’s financial peace of mind. Deferring it may result in delays in achieving objectives or in the misallocation of resources. The best time to begin is today. Consulting a Certified Financial Planner CFP® will allow you to approach every stage of life with confidence and assurance.