Creating a financial plan is not a one-time event. Here are some examples of the types of changes you might face, and how these could affect your financial plan.
Your cash flow. Whether it's an increase or decrease, a change in cash flow affects a number of elements in your financial plan. Getting a raise, for example, will increase your RRSP contribution limit for the following year.
Your family. Marriage, the birth of a child, the death of a family member - events like these are likely to require adjustments in your insurance coverage, will, and RRSP beneficiary designation.
Your asset allocation. The mix of growth, fixed-income, and cash assets in your portfolio can change over time, as each asset class performs differently. To get back to your target allocation, you might need to rebalance.
Your time horizon. As time passes, goals that were once long-term become short-term, and may require a different strategy.
The investment environment. The financial industry is constantly evolving, and your financial plan needs to stay in step with it.
In a changing world and throughout your life, the guidance of a professional advisor is invaluable in helping you keep your plan on track.
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