After establishing and implementing a financial plan, it is necessary to periodically review and monitor that the financial plan is still fit for purpose. If circumstances change, a new plan may be needed.
Significant life events, such as having a child, can trigger the need to re-arrange financial plans to meet new objectives. You may start out wanting to become rich, but later decide to increase your income.
Typically, individuals change their attitudes towards investing as they get older. Younger people usually want to build wealth, while older people want to focus on increasing their income.
It can also be the case that an individual’s risk tolerance changes over time. This is usually due to changing commitments that increase or decrease the need to have cash on hand more often.
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