Annual Financial Checkups: What to Review and Why It Matters

Most people wouldn’t dream of skipping an annual physical with their doctor. But when it comes to finances, regular checkups often get overlooked — sometimes for years at a time.

If you want to build and maintain long-term financial health, an annual financial review isn’t optional. It's essential.

Whether you’re actively growing your wealth, preparing for retirement, or already managing your legacy, taking time each year to assess your financial life can help you catch small issues before they become bigger problems — and ensure you stay aligned with your goals.

Here’s what a thorough financial checkup should include and why it matters.

Why Annual Financial Reviews Are Crucial

Financial planning isn’t a "set it and forget it" exercise. Life changes. The economy shifts. Tax laws evolve.

Without regular reviews, you may find that your financial plan — even one that was perfect a few years ago — no longer fits your needs.

A structured annual review can help you:

• Ensure alignment with your short- and long-term goals

• Adapt to life transitions, market conditions, or tax law updates

• Optimize your investments, savings, and protection strategies

• Spot risks or gaps before they escalate

In short, it helps you stay proactive instead of reactive.

What to Cover During Your Financial Checkup

Here’s a checklist of key areas you should review each year:

1. Goal Updates and Life Changes

Start by revisiting your personal and financial goals. Questions to ask:

• Have your priorities shifted?

• Has there been a major life event (e.g., marriage, divorce, new child, relocation, career change)?

• Are you still on track for major milestones like retirement, education funding, or charitable giving?

Adjustments may be necessary to reflect new realities or opportunities.

2. Income, Expenses, and Cash Flow

Understanding your updated cash flow helps ensure that your saving, spending, and investing are appropriate.

• Review current income streams.

• Track spending patterns over the past year.

• Assess whether you’re saving enough toward your goals.

• Identify opportunities to allocate surplus income more effectively.

A cash flow check can reveal hidden inefficiencies — or new savings opportunities.

3. Investment Portfolio Review

Market volatility and economic shifts can throw portfolios out of balance.

During your checkup, review:

• Asset allocation: Are your investments still aligned with your risk tolerance and time horizon?

• Performance: Are returns reasonable given your objectives and benchmarks?

• Diversification: Are you properly diversified across sectors, regions, and asset classes?

• Costs: Are investment expenses still competitive?

This is also an opportunity to address asset location — optimizing where assets are held to minimize taxes, not just what assets you own.

Note: Past performance does not guarantee future results. Diversification and asset allocation strategies do not assure a profit or protect against loss.

4. Tax Efficient Planning Opportunities

Taxes impact every aspect of financial planning.

In your annual review:

• Estimate potential taxable income.

• Explore opportunities for tax-advantaged savings (e.g., 401(k), IRA contributions, Roth conversions).

• Assess realized capital gains or losses.

• Plan for upcoming Required Minimum Distributions (RMDs) if applicable.

• Review charitable giving strategies for tax efficiency.

Proactive tax management can often yield more value than trying to react after the year is over.

5. Retirement Plan Check-In

If you’re still working toward retirement:

• Are you contributing enough to retirement accounts?

• Are you taking full advantage of employer matching?

• Do your retirement projections still align with your target date and lifestyle expectations?

If you’re already retired:

• Is your withdrawal strategy sustainable?

• Are you tax-efficiently drawing from different account types (taxable, tax-deferred, Roth)?

Minor adjustments now can help strengthen your long-term outlook.

6. Insurance and Risk Management

Your insurance needs can change significantly over time.

Annual reviews should cover:

• Life insurance: Does your coverage match your current family needs?

• Disability insurance: Are you adequately protected if you can’t work?

• Long-term care insurance: Should this be part of your strategy?

• Homeowners, auto, umbrella policies: Are coverage levels appropriate?

Good risk management is the financial equivalent of wearing a seatbelt: you hope you don’t need it, but you’re grateful it’s there if you do.

7. Estate Preservation Planning Review

Estate preservation plans should reflect current wishes and laws.

Each year, confirm:

• Are your wills, powers of attorney, and healthcare directives up to date?

• Are beneficiary designations accurate across retirement accounts, life insurance, and other assets?

• Have there been any tax law changes that impact your estate preservation plan?

You don’t need to overhaul your estate preservation plan every year — but a quick review helps ensure you’re not unintentionally leaving things to chance.

8. Debt and Credit Management

Debt can be a useful tool when managed well.

Each year:

• Review current loan balances and interest rates.

• Look for opportunities to refinance or accelerate payoff.

• Check your credit reports for errors or signs of fraud.

Strong credit management supports overall financial flexibility.

The Value of Professional Guidance

While many people can handle parts of a financial review on their own, working with an experienced financial advisor can add value:

• Advisors can spot blind spots or risks you may overlook.

• They stay current with market trends, tax law changes, and planning strategies.

• They provide accountability and support for your goals.

A collaborative review helps ensure that all parts of your financial life — investments, taxes, estate preservation planning, insurance — work together efficiently.

Your Next Step

Financial wellness, like physical wellness, is built through regular care and attention.

If it’s been more than a year since you had a full financial review — or if you’ve experienced major life changes recently — now is a good time to schedule one.

At Kingdom Guard Financial Group, we help successful individuals and families stay ahead of change with comprehensive, personalized financial planning. Your goals, life, and dreams deserve more than a one-time plan — they deserve ongoing care.

Important Disclosure: This material is for informational purposes only and is not intended to provide specific financial, tax, or legal advice. Please consult your financial advisor, attorney, or tax professional regarding your individual situation.

Investing involves risk which includes potential loss of principal. These concepts were derived under current laws and regulations. Changes in the law or regulations may affect the information provided.