January is always an exciting month for us here at FPFoCo. That’s because we tend to have lots of new clients coming our way this time of year. It is New Year’s resolution season, and many of those resolutions are financial. Plus, plenty of current clients are due for their annual financial plan refreshes as we offer these consultations in January, May, and September. 

With three different plan refresh cycles, based on when you began working with us, what makes January an ideal time for some — but not others? And how do you know if you should schedule now or hold off until May or September? Let’s get into it!

Should I Refresh My Financial Plan Now?

New Year, new you, new financial plan? Many folks start working with us in January because they’ve set a new year’s financial resolution to get a better handle on their finances. We’ve got almost the whole year ahead of us, and the previous year is nice and clear in the rear-view mirror. For many, whether you’re just getting started with FPFoCo or you’ve been a client for years, January is a great time to create or refresh your financial plan.

Each calendar year also brings with it some unique changes. For one, it’s a new tax year! With a new tax year comes tax law changes, from tax brackets and contribution maximums to standard deductions and oh so much more. It’s also the very beginning of tax season. Sure, the Internal Revenue Service (IRS) has not yet announced when taxpayers can begin filing their taxes. But those tax forms will begin arriving in physical and electronic mailboxes soon! If major tax opportunities have already arisen for you this year, it might be a great time for a financial plan refresh.

What about other major life changes? Certain financial planning moments impact us all, while others are unique to us as individuals. If you’re experiencing a critical money moment related to one of these changes, you may want to schedule your refresh.

Should I Wait to Refresh My Financial Plan?

If January is such a great time for a financial plan refresh, why schedule for May or September instead? You might already be on a May or September cycle that works well for you, and there’s no harm in keeping it. Put another way: If it ain’t broke, don’t fix it! For those who started working with FPFoCo in January of a prior year, why push your refresh to one of these other cycles? 

For one, you may be familiar with regular New Year changes and feel well-equipped to handle them. This might be especially true for long-term clients who’ve already built strong financial foundations. Or it could be that, while the calendar flipped, not much else in your life has significantly changed. You’re keeping your financial life strong and steady! You might’ve received a salary increase from your employer or a cost-of-living adjustment (COLA) from Social Security or your pension plan. But it’s not going to drastically change your financial planning outcome. (Plus, we already factor in a 3% increase for many of these on an annual basis in your RightCapital, anyway!)

Another reason to wait? You might be facing uncertainties now with details due to solidify later in the year. Such a scenario makes waiting until you have the information you need to move forward more ideal. With facts and data available, your plan will be accurate — instead of a best guess. Perhaps you just don’t want to do two annual financial plan refreshes in a single year. One now and one later might be a bit too much for you, so you plan to hold off for a few months or the better part of the year for your plan refresh. 

I mentioned each calendar year being a new tax year earlier. On that topic, waiting until after tax season might mean that a May financial plan refresh is a better option for you. If you made quite a few year-end tax planning moves last year, waiting until later in the year may be more beneficial. You could look to the September cycle to get even more out of your financial plan refresh once your tax situation has solidified further.

Just not sure if you should keep your annual financial plan refreshes in January? One question you can ask yourself is, “Is this a ‘normal’ year when I simply don’t need a plan revamp — at least not yet?” This might be the case if you’ve stayed on top of uploading relevant information for updates and checked in along the way. We enjoy seeing you more than once a year for a plan refresh, after all! If you don’t need a major plan overhaul at this time, you’re always welcome to schedule for May or September.

The bottom line: We offer full plan revamps multiple times of year to best serve you, our clients! When you need a refresh, we’re here. Head to your client portal and schedule for the date that best suits your needs. And don’t forget: With unlimited meeting and consultation time, we’re here throughout the year as new financial needs arise. Happy New Year!