A Quarterly Review is a financial planning practice that involves assessing one's financial situation every three months to ensure that they are on track with their financial goals. The process involves reviewing income, expenses, investment portfolios, debt, and progress towards financial goals to determine whether the current financial plan is working effectively. The review helps individuals and their financial advisors to identify areas of improvement and make necessary adjustments to their financial plan. By conducting a Quarterly Review, individuals can stay informed about their financial situation, track their progress towards financial goals, and make informed decisions about their finances. The review also helps to identify potential risks or challenges that may impact financial success and address them proactively. By taking a proactive approach to financial planning through the Quarterly Review process, individuals can maximize their financial potential and achieve long-term financial stability. Before beginning a quarterly review, it is crucial to gather all relevant financial documents. These include: Investment statements Retirement account statements Insurance policies Establishing both short-term and long-term financial goals provides a roadmap for achieving financial success. It is essential to include retirement goals in this process. To ensure effective communication and collaboration, schedule review meetings with your financial planner or advisor and any family members or other stakeholders involved in your financial decisions. Begin your quarterly review by analyzing your income and expenses. Compare your actual income and expenses to your budget, identify trends and anomalies, and adjust your budget as necessary to stay on track with your financial goals. Assess the performance of your investments by comparing portfolio returns to relevant benchmarks. Evaluate your asset allocation and rebalance your portfolio if needed to maintain an appropriate level of risk. Update your net worth statement and measure your progress against your financial goals. Adjust your goals or strategies if needed to remain on track for success. Understanding the tax implications of your financial activities is crucial to maximizing your financial success. Review your financial activities to identify potential tax savings or liabilities. Identify and take advantage of tax-saving opportunities, such as tax-advantaged investment accounts, deductions, and credits. Ensures that you have planned for and can meet your upcoming tax payment obligations. Review your current insurance coverage, including life, health, disability, and property and casualty insurance, to ensure you are adequately protected against potential risks. Evaluate any changes in your risk profile that may necessitate adjustments to your insurance coverage. If your risk profile has changed or your coverage is insufficient, adjust your insurance policies to ensure adequate protection. Assess your retirement savings and contributions, ensuring that you are on track to meet your retirement goals. If your progress towards your retirement goals is insufficient, adjust your goals and strategies as needed. Evaluate your potential sources of retirement income, such as Social Security, pensions, and investments, to ensure a comfortable and secure retirement. Regularly review and update your wills and trusts to ensure they accurately reflect your wishes and circumstances. Ensure that your beneficiary designations for accounts such as retirement plans and life insurance policies are current and accurate. Engage in discussions with your financial advisor and family members about wealth transfer strategies that align with your values and goals. After completing your quarterly review, prioritize and assign tasks to ensure that action items are addressed promptly. Establish deadlines for completing action items to maintain momentum and accountability. Finally, schedule your next quarterly review to ensure that you maintain a regular cadence of financial check-ins and stay on track with your financial goals. Conducting a Quarterly Review is an essential practice for individuals and their financial advisors to evaluate their financial situation, assess progress toward financial goals, and make necessary adjustments to their financial plan. By gathering relevant financial documents, setting financial goals, scheduling review meetings, and reviewing financial performance, individuals can ensure that they stay on track with their financial objectives. Additionally, by reviewing tax planning and strategy, risk management and insurance, retirement planning, and estate and legacy planning, individuals can identify potential opportunities for improvement and ensure that they are adequately prepared for the future. Finally, by prioritizing and assigning tasks, setting deadlines for action items, and scheduling the next quarterly review, individuals can maintain momentum and accountability to stay on track with their financial goals. Overall, a Quarterly Review is a valuable financial planning practice that can help individuals achieve financial success and security.What Is a Quarterly Review?
Preparing for the Quarterly Review
Gather Financial Documents
Set Financial Goals
Schedule Review Meetings
Reviewing Financial Performance
Analyze Income and Expenses
Evaluate Investment Performance
Assess Progress Toward Financial Goals
Tax Planning and Strategy
Review Tax Implications of Financial Activities
Identify Tax-Saving Opportunities
Plan for Upcoming Tax Payments
Risk Management and Insurance
Evaluate Current Insurance Coverage
Assess Changes in Risk Profile
Adjust Insurance Policies as Needed
Retirement Planning
Review Retirement Savings and Contributions
Adjust Retirement Goals and Strategies
Assess Retirement Income Sources
Estate and Legacy Planning
Review Wills and Trusts
Update Beneficiary Designations
Discuss Wealth Transfer Strategies
Action Items and Next Steps
Prioritize and Assign Tasks
Set Deadlines for Action Items
Schedule Next Quarterly Review
Conclusion
Quarterly Review FAQs
A Quarterly Review is conducted to assess your financial situation, make necessary adjustments, and track your progress toward your financial goals. Regular quarterly reviews help ensure that you maintain discipline in your financial planning and stay on track for long-term success.
During a Quarterly Review, you will evaluate your investment performance by comparing portfolio returns to relevant benchmarks, assessing your asset allocation, and rebalancing your portfolio if necessary. This process helps you maintain an appropriate level of risk and ensure that your investments are aligned with your financial goals.
Yes, a Quarterly Review can assist in tax planning and strategy. By reviewing the tax implications of your financial activities, identifying tax-saving opportunities, and planning for upcoming tax payments, you can minimize your tax liabilities and maximize your financial success.
A Quarterly Review helps you evaluate your current insurance coverage and assess changes in your risk profile. This process enables you to adjust your insurance policies as needed, ensuring adequate protection against potential risks and safeguarding your financial well-being.
Including estate and legacy planning in your Quarterly Review ensures that your wills, trusts, and beneficiary designations are up-to-date and reflect your current wishes and circumstances. Additionally, it allows you to discuss wealth transfer strategies with your financial advisor and family members, ensuring a smooth transfer of assets in line with your values and goals.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
