Take a Spring-Cleaning Approach to Your Investment Plan – 2
By Saghir A. Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)
An annual review and spring cleaning of your investment plan could help keep your overall plan and your long-term goals on track. Try these four steps.
Act: Update where necessary
What it usually means: This is when the real work begins. Remember, enlisting the help of others can streamline your efforts and provide an outside perspective on the best way to complete the job.
What it means for your finances: Revising your investment plan may involve adding, changing, or removing elements so your plan better aligns with your current situation or any financial objectives that may have changed. This could include rebalancing investment portfolios, updating estate plans, or adjusting saving and spending habits.
It’s important to have a team of specialists guide you through these changes, Investment plans typically have financial, tax, and legal implications, so you need to have your CPA, attorney, and other advisors working together to develop a plan tailored to your goals.
Your next step: Work with your financial advisor to make the necessary changes, and loop in other specialists like attorneys and tax advisors whenever needed. Implement any additional recommended adjustments to your investment plan as well.
Regroup: Debrief after you declutter
What it usually means: This is about making a plan to keep things neat, which could involve more frequent (but smaller scale) cleanings to help make next year’s spring refresh more efficient. Getting children involved in the ongoing maintenance may make the work easier and provide opportunities to pass along values about caring for what matters most.
What it means for your finances: Talking with your financial advisor more often could mean smaller tweaks to your investment plan each year and quicker responses to changing circumstances. Consider having a long conversation with your financial advisor once a year and checking in every few months by phone or email to discuss any concerns.
I believe you should stay in frequent communication with your advisors and get into a regular rhythm of reviewing your plan with them. I also think that communication should extend to family. As clients age, their children become more involved in the financial picture as heirs, so I believe reviewing your plan should be a family conversation and a family exercise.
Your next step: Continue checking in with advisors to make any necessary adjustments throughout the year. Find a cadence for reviews that works for you to help make sure your investment plan stays on track. Involve family in your planning conversations whenever possible and appropriate.
( Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale. Saghir Aslam has dedicated himself to social welfare activities since 1965 and serves as the founding chairman of Saba Homes, honoring and empowering orphans.)
