Are You Missing Key Areas in a Financial Plan? Here’s How to Find Out 

When it comes to financial planning, certain areas tend to attract more attention than others. Investments often take center stage, while other parts of a plan (like tax strategy, income structure, risk management, and estate considerations) may receive less focus. It’s not uncommon for these areas to slip under the radar, especially when things feel steady. However, revisiting them from time to time can offer helpful insight into how well your current strategy aligns with your goals. 

This post outlines key areas of a financial plan that are sometimes overlooked. It also provides simple ways to identify where there may be gaps and how to start thinking about them. 

Why Gaps Happen in Financial Planning 

Financial planning can involve many components, including investments, taxes, income, estate documents, and risk protection. Keeping these elements aligned over time can be challenging, especially as circumstances change. 

Life events such as career shifts, business growth, evolving family responsibilities, or changes in the market can impact a plan. When these changes occur, certain areas may not receive the necessary attention or updates, which can affect how well the plan reflects current priorities. 

Focusing heavily on investment performance might also lead to overlooking other areas. While a portfolio is an important aspect of a plan, it often needs to work in coordination with other components like tax planning, income structure, risk coverage, and estate considerations. For example, a portfolio that appears to be performing well might still contain tax inefficiencies or outdated estate provisions. 

Recognizing that financial planning is not static and that different areas may require more attention at different times can provide clarity. Reviewing the overall structure regularly can help highlight areas that may benefit from closer consideration. 

6 Common Signs You Might Be Missing Key Areas in Your Financial Plan 

A financial plan can seem complete at first glance, but certain areas may not be getting the attention they need. Here are six signs that could indicate parts of your plan deserve a closer look: 

1. Your investments are solid, but you’re not sure about taxes 

A strong portfolio may overshadow less visible tax inefficiencies. If tax planning hasn’t been revisited in a while or feels like an afterthought, it may be worth examining whether there’s room to better align your investment and tax strategies. 

2. You’re drawing income but are not sure how withdrawals affect the bigger picture 

Without a structured plan for retirement income, ad hoc withdrawals might create long-term challenges. Tax impact, portfolio sustainability, and benefits like Medicare can all be influenced by the timing and sources of your withdrawals. 

3. You’re not certain your estate documents reflect your current wishes 

Estate planning documents can easily become outdated, especially if there have been major life changes. Making certain that wills, trusts, and beneficiary designations match your current intentions can help reduce confusion later. 

4. Your insurance coverage hasn’t been reviewed in years 

Over time, changes in income, assets, and lifestyle may outpace existing coverage. If policies haven’t been reviewed recently, it could be worth assessing whether your insurance and liability protections still meet your needs. 

5. Charitable giving is happening but without a clear plan 

Approaching charitable contributions year by year without integrating them into broader tax and estate planning might leave opportunities untapped. A more structured giving approach can offer clarity and help align your intentions with your financial strategy. 

6. You’re unsure how all the pieces connect 

Investments, taxes, income, estate planning, and risk management can each seem like their own task. But without looking at how these elements interact, gaps or inefficiencies might emerge. Revisiting how all parts of your plan fit together can provide a clearer view of where things stand. 

How to Spot Gaps in Your Plan 

Identifying potential gaps in your financial plan starts with stepping back and reviewing the bigger picture. A financial health check can be a useful approach, allowing you to assess how well your plan reflects your current situation, goals, and evolving circumstances. 

When conducting this review, look for signs that certain areas might be out of sync. These could include: 

• Outdated estate documents that no longer reflect your wishes or family dynamics. Even small details, such as beneficiary designations or titling of accounts, can have unintended consequences if left unreviewed. 

• Tax planning that focuses only on the current year rather than looking at multi-year or long-term implications. For example, a sudden increase in income, a change in charitable giving, or shifts in investment income can affect your tax exposure in ways that deserve a closer look. 

• Insurance coverage that hasn’t been reviewed in years. Policies purchased at one stage of life may not align with current responsibilities or asset levels. This applies not only to life insurance but also to disability, long-term care, and liability coverage. 

• Income plans that are reactive rather than coordinated. If withdrawals are made on an as-needed basis without a clear structure, this can create tax inefficiencies or liquidity challenges later. 

• Charitable giving that is ad hoc or unstructured. Without a strategy, philanthropic efforts might not align with your broader financial plan, potentially leaving tax or legacy considerations unaddressed. 

• A periodic review, ideally with the guidance of a financial professional, can help bring these gaps into focus. Rather than waiting for a triggering event, proactively revisiting each area can offer insights that might otherwise be overlooked. This reflection doesn’t need to result in sweeping changes, but it can help identify where adjustments may support your evolving financial goals. 

Conclusion 

For those looking to explore these areas in more depth, we’ve created a guide that walks through each pillar in detail. It can serve as a helpful resource for reviewing your plan or sparking conversations with your advisory team. 

Download the 6 Keys to Comprehensive Wealth Management Guide 

If you’d like to discuss how these areas relate to your own financial situation, our team is always available for a conversation. 

Standard Disclosure 

This blog expresses the author’s views as of the date indicated, are subject to change without notice, and may not be updated.  The information contained within is believed to be from reliable sources.  However, its accurateness, completeness, and the opinions based thereon by the author are not guaranteed – no responsibility is assumed for omissions or errors.  This blog aims to expose you to ideas and financial vehicles that may help you work towards your financial goals. No promises or guarantees are made that you will accomplish such goals.  

Past performance is no guarantee of future results, and any expected returns or hypothetical projections may not reflect actual future performance or outcomes. All investments involve risk and may lose money. Nothing in this document should be construed as investment, tax, financial, accounting, or legal advice. Each prospective investor must evaluate and investigate any investments considered or any investment strategies or recommendations described herein (including the risks and merits thereof), seek professional advice for their particular circumstances, and inform themselves about the tax or other consequences of any investments or services considered.   

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