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BetterWealth
December 16, 2025
Most people don’t wonder what should a financial planner's yearly plan include until something feels off. Your budget is tight, taxes surprise you, or you’re saving but not building real momentum. A yearly plan should make the next steps clear and measurable.
At BetterWealth, we see that the biggest pain point is uncertainty. You want to know if you’re on track, what to fix first, and what to ignore for now. A strong annual review turns scattered decisions into one connected plan.
This guide breaks down what to review each year, from cash flow and investments to insurance, taxes, and retirement. By the end, you’ll know exactly what a financial planner’s yearly plan should include and how to use it to stay in control.
A yearly financial plan should give you a clear picture of where your money stands and how to move closer to your goals. It means looking at your full financial situation, updating your priorities, and making sure your budget actually supports your plans.
Start by reviewing your entire financial picture. Check your assets, debts, income, and expenses; don’t just guess. Evaluate your investments, insurance policies, and retirement accounts.
Are they actually aligned with your current needs and future goals? This assessment helps you spot gaps or risks in your plan. Maybe you realize you need more insurance coverage, or your investment mix needs a tweak for better growth or safety.
Getting a clear snapshot of where you stand gives you a strong foundation for decisions during the year. Some folks use unique tools, like strategies that help you see how your life insurance can work harder for you.
Your goals can absolutely shift as life and markets change. Every year, take a beat and revisit what you want to achieve. Look at short-term goals, like saving for a trip or paying off debt.
Then check in on long-term goals, such as retirement or estate plans. Adjust your goals to stay realistic and meaningful. If your income changes, your saving targets might need a tweak; it happens.
This constant review keeps your financial plan connected to your life’s priorities and helps your strategy stay relevant.
A detailed budget is key to your yearly plan. Track your income sources and all expenses, yes, even the little ones. Plan your cash flow so you can cover everyday costs and still build savings or investments.
That balance is surprisingly easy to lose if you’re not paying attention. Make sure you’ve got an emergency fund and that your monthly expenses don’t outpace your earnings. Adjust your budget as your income, spending habits, or goals change.
This helps you stay in control and avoid those nasty surprises. A clear budget makes it a lot easier to see how every dollar fits into your bigger financial picture.
Your financial plan should show how your money is allocated, how much risk you’re comfortable with, and when to adjust your investments. Managing these elements keeps your portfolio aligned with your goals and life changes.
Regular checks and updates help your strategy stay effective as markets and your situation evolve. Don’t just set it and forget it.
Asset allocation is all about deciding how much of your money goes into stocks, bonds, cash, or other investments. This balance shapes your portfolio’s risk and return. Every year, review your allocation to confirm it still matches your goals and timeline.
Your portfolio should shift if your priorities change, maybe you want more growth when you’re younger, or more income as you approach retirement.
Risk tolerance is basically how much investment volatility you can stomach. It depends on your age, income, financial responsibilities, and your personality.
You might feel fine with big swings when your savings are large, or you’ve got years to recover. Each year, reassess your risk tolerance since life events, like job changes or starting a family, can change how much risk feels right.
If your risk level doesn’t match your portfolio, you could end up stressed or missing out. Being honest here helps you build a plan that fits you, not just a generic template.
Rebalancing means adjusting your investments to keep your chosen asset mix. If stocks grow faster than bonds, your allocation can get lopsided and riskier than you intended.
Usually, rebalancing happens once or twice a year. You sell assets that exceed your target percentage and buy those that fell behind. This habit helps you “buy low, sell high” and keeps your portfolio on track.
Automated tools or advisors can make rebalancing a lot less of a headache. It’s a smart way to maintain your intentional approach to wealth.
To get your finances ready for the year ahead, focus on boosting your tax efficiency through smart use of accounts, timely estimated tax payments, and staying on top of tax law changes. These steps help lower what you owe and keep your financial plan on track. Sometimes it’s the smallest tweaks that make the biggest difference.
Max out contributions to accounts like IRAs, 401(k)s, HSAs, and 529 plans to reduce your taxable income. Check how much you contributed last year and adjust to hit the new limits.
If you’re self-employed, SEP IRAs or Solo 401(k)s can help you save more for retirement and lower taxes. Don’t forget to review whether Roth or traditional accounts fit your long-term strategy.
Making catch-up contributions if you’re over 50 is another way to boost your tax-advantaged savings. Don’t leave money on the table. Review these accounts every year.
If you get income outside a regular paycheck, like from freelancing, rentals, or investments, you might need to make estimated tax payments quarterly. Review last year’s payments and your current income projections to avoid penalties or a big bill.
Overpaying ties up your cash, underpaying triggers fines. Adjust your withholding or estimated payments based on changes in income or deductions. Tools like the IRS withholding calculator or a quick chat with a planner can help you avoid headaches later.
Tax laws can shift every year, changing deductions, credits, and income brackets. Staying informed lets you plan ahead instead of scrambling at tax time.
For 2025, there are updates to income thresholds, new rules on itemized deductions, and possibly changes in retirement account limits or credits for education or energy upgrades. Check official IRS releases or trusted sources so your plan adapts to anything that impacts your tax liability or savings opportunities.
Your yearly financial plan has to keep up with changes in your retirement savings, projected income, and government rules on withdrawals. These updates protect your retirement goals and help you avoid nasty surprises.
Staying on track means checking contributions, forecasting income, and planning withdrawals wisely. It’s not always glamorous, but it matters.
Each year, review how much you’re putting into retirement accounts like IRAs or 401(k)s. Maximize contributions up to the allowed limits, especially if your income or job status has changed.
In 2025, the 401(k) contribution limit is $23,000 if you’re under 50, and $30,500 if you’re 50 or older. If you own a business or are self-employed, make sure your current plans fit your goals and adjust if needed.
Factor in catch-up contributions if you’re getting closer to retirement. Missing these can shrink your growth and tax benefits. Regular reviews keep your contributions in line with your retirement timeline.
Update your retirement income forecast every year to reflect market changes, interest rates, or new spending needs. This projection includes Social Security, pension income, investment withdrawals, and other sources.
Use realistic assumptions about returns and inflation to estimate how much income your savings will generate. If you spot a gap between income and expenses, you might need to save more or rethink your retirement age.
Once you hit age 73, the IRS requires minimum withdrawals from certain retirement accounts. Planning these Required Minimum Distributions (RMDs) is crucial to avoid stiff tax penalties.
The exact amount depends on your account balance and life expectancy. Review RMD rules annually since tax laws can change. You can also plan distributions to minimize your tax burden by timing withdrawals or converting funds to Roth IRAs. Proper RMD planning helps you keep more of your wealth in retirement.
Reviewing your insurance and risk management covers helps protect your finances against unexpected events. You need to make sure your life and disability insurance still fit your needs.
Check your property and liability coverage is up to date, and have a plan for long-term care if needed. These steps reduce gaps in protection and help keep your financial plan strong.
Life and disability insurance are there to protect your income and your family’s future. Start by checking if your coverage amounts actually match your financial responsibilities right now.
If you’ve had a big life change, a new child, a new house, or are launching a business, your policy should reflect that. Don’t just set it and forget it.
Take a look at what kind of life insurance you’ve got. Overfunded whole life insurance can give you living benefits and some growth, not just a death benefit.
Disability insurance matters just as much. Make sure it covers enough of your income, and see how long the benefits would last if you ever need them.
When policies are outdated or don’t offer enough coverage, consider updating or increasing them. That way, your financial foundation stays solid if you ever face illness, injury, or worse.
Your home, car, and personal stuff need the right insurance to cover damage or loss. Review your policies every year to make sure the values and deductibles fit your current situation.
You don’t want to be underinsured if you have to file a claim. That’s a headache nobody needs.
Check your liability coverage, too. It protects you from lawsuits if someone gets hurt on your property. Sometimes, bumping up liability limits or adding umbrella insurance can give you some extra peace of mind.
If your home’s value changes or you buy something big, update your policies. Small tweaks now can prevent big problems later.
Long-term care planning really matters if you want to protect your wealth from the costs of chronic illness or disability. Take time to look at long-term care insurance or other ways to pay for care without draining your assets.
Think about what kind of care you might actually need, maybe in-home help, assisted living, or a nursing home. Insurance can help with these bills, but there are usually waiting periods or coverage limits to watch out for.
If you don’t have a policy just for this, maybe set aside savings or investments for future care. It’s not thrilling, but it’s practical.
Your financial plan should have a clear estate planning process so your assets actually end up where you want. Regularly checking your key documents helps protect your loved ones and keeps everything up to date.
Reviewing and updating beneficiary designations every year is more important than most people think. These designations override your will, so old info can stir up confusion or disputes.
Make sure to check beneficiary names on:
Life changes, marriage, divorce, births, and deaths, usually mean you need to update this stuff. If you miss it, assets could go to the wrong people or create tax complications.
Your will and trust documents need a regular review. Family changes, financial shifts, or new state laws can all mean it’s time to revise.
Focus on:
Even a small update can prevent legal headaches and make sure your plan works. Work with your estate planning attorney to review these documents each year and make any needed changes.
Your yearly financial plan should include both long-term goals, like saving for education and big expenses you know are coming. Planning ahead here helps you control costs and keeps you from derailing other priorities.
Saving for education is expensive, but starting early takes the pressure off later. Look at tax-advantaged accounts like 529 plans or Coverdell ESAs if you can use them.
These accounts grow tax-free when you use them for qualified education expenses. Set a clear savings goal based on what you think school will cost. Break it down into monthly or yearly targets to keep things manageable.
Review your plan each year and adjust if school costs or your finances change. It’s all about balancing education savings with your other goals, like retirement. Don’t let one crowd out the other.
Big purchases, a house, a car, or a new business, need thoughtful planning. Figure out when you want to buy and estimate the total cost, including sneaky fees like taxes or maintenance.
Set up a separate savings fund just for these purchases. That way, you don’t mess with your main savings or investments.
If you know a big expense is coming soon, focus on building cash reserves so you don’t have to use credit. Regularly reviewing your plan lets you adjust how much you save or even delay something if it’s not essential.
Planning for big buys supports your financial independence and helps keep your bigger wealth-building plans on track.
Your yearly financial plan should give some thought to making your giving more intentional and effective. Aligning donations with your values matters, but so do tax benefits and legacy goals.
Planning your charitable giving lets you decide how much and when to give. You can set goals for the causes you care about most.
Scheduling donations helps you avoid those last-minute gifts that don’t really fit your plan. Try outright gifts, recurring donations, or giving appreciated assets if you want possible tax perks.
Keep track of your giving so it matches your philanthropic goals and your finances. Reviewing your giving each year can help you maximize your impact and tax savings.
A donor-advised fund (DAF) lets you set aside money and recommend grants to charities over time. It’s a flexible way to support causes now or later.
DAFs can give you a tax deduction when you fund the account, not just when you make grants. The assets inside can also grow tax-free.
Setting up a DAF can make your giving simpler by putting everything in one place. If you want a structured way to give that fits your long-term plans, it’s worth a look.
Clear communication and regular progress tracking make a financial plan work. You need ways to talk about changing goals and see if your plan’s actually working.
This keeps your financial path lined up with what matters to you, even if that changes.
Before your yearly review, gather your important financial documents, income statements, investment updates, insurance policies, and notes about any life changes, like a new job or marriage. Jot down questions or concerns you want to bring up.
That way, you’ll stay focused and get more out of the meeting. It helps to look over last year’s goals ahead of time. That keeps the discussion efficient and makes sure your plan is still on track. Sometimes, you just need to see it all in one place to know what’s next.
Tracking your goals means measuring if you’re moving toward what you want. Use simple tools like charts or scoring systems to see your progress.
For example, assign point values to completed tasks like increasing savings or updating insurance. Your financial advisor can help you set key performance indicators (KPIs) that make it easy to track steps like debt reduction or investment growth.
Regular updates let you adapt your plan as life changes. Consistent monitoring helps you stay motivated and make smarter choices over time.
A yearly plan matters most when money feels unclear. Reviewing your goals, cash flow, investments, taxes, insurance, and retirement each year helps you spot problems early and make confident adjustments.
BetterWealth helps turn that yearly review into a clear, usable plan that matches your priorities. When you know what to focus on next, you stop reacting to surprises and start making steady progress.
If you want clarity on what should change in your plan this year, schedule a free Clarity Call. You’ll walk away knowing what a financial planner's yearly plan should include for your situation and what to do first.
A yearly plan should include a full review of your finances, updated goals, and clear action steps for budgeting, investing, taxes, insurance, and retirement. The goal is to reduce uncertainty and keep your strategy aligned with your life.
It should also identify what changed since last year and what needs to change next so you can make decisions with confidence.
At a minimum, you should review it once per year. Many people also benefit from quick check-ins during major life changes like a new job, marriage, a new child, or a move. A yearly review sets the direction, and smaller check-ins help you stay on track.
Bring recent pay stubs or income statements, account statements for investments and retirement, insurance policies, and a list of debts. It also helps to bring last year’s goals and any major updates, like a home purchase or career change. Having everything in one place helps your planner give better guidance and quicker answers.
A yearly investment review should cover your asset allocation, risk tolerance, fees, and whether your portfolio still supports your goals and timeline. Rebalancing is often part of the process if the portfolio drifted during the year. This keeps risk from quietly growing without you noticing.
A yearly tax review should include contributions to tax-advantaged accounts, whether estimated payments or withholding need changes, and any tax law updates that may affect you. It should also consider timing decisions like deductions, credits, or realizing gains. Small tax adjustments can prevent bigger surprises later.
Your yearly plan should review life insurance, disability coverage, and property and liability policies. The key is making sure coverage still matches your responsibilities and your current lifestyle. Outdated coverage can create gaps that only show up when something goes wrong.
It should include contribution levels, updated retirement income projections, and withdrawal planning for the future. If you’re closer to retirement, it should also address Required Minimum Distributions and tax-smart distribution strategies. The pain point this solves is not knowing whether you’re actually on track.
Review beneficiaries on retirement accounts and insurance policies, and check whether your will and trust documents still reflect your wishes. Life changes like marriage, divorce, births, or deaths often require updates. This helps prevent confusion and keeps your plan aligned with what you intend.
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