Monitoring your goals and Looking ahead – Step 5

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Plans evolve and change just like life. Hence, financial plans need to be tweaked from time to time. As it is said, “Nothing remains constant except change! The term financial planning is used instead of a financial plan, is because there is a need to make such plans time to time because of monetary changes as well as changes in your goals and aspirations. Therefore, re-evaluation of  your plans on a periodic basis, is necessary for each active investor.

Monitoring your plan includes reviewing your goals and market situation on a periodic basis. Investments are selected on the basis of the past performance with an assumption that they will perform in a similar manner in the future. But there are probabilities when future performance can diverge from past performance, due to market fluctuations, financial changes or changes in client needs and desires. Hence, the final step is to keep monitoring your capital investment. Constant Revision of your goals and market situation will assist you in whether to stay invested or to look alternate investment opportunities.  Therefore, these changes can be made in the light of personal, business or family circumstances.

Hence, we can say that Financial Plans are “living documents” and are continually edited and updated.

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