Even the Most Engaged Investors Benefit from Regular Financial Reviews
Thomas Mellum is a financial advisor at Cornerstone based in Reno, NV. Recognizing that no two financial situations are the same, Thomas is committed to creating thoughtful strategies that support clients in reaching both their short- and long-term financial goals. His approach centers on gaining a clear understanding of each client’s unique needs and building solutions that guide them toward lasting success.
EVEN THE MOST ENGAGED INVESTORS BENEFIT FROM REGUALR FINANCIAL REVIEWS
Regardless of your personal investment style, meeting with your financial professional at least once a year is a critical component of maintaining a strategy aligned with your goals. Managing financial accounts is a multi-faceted process that can encompass investment management, legacy planning, estate considerations, income strategies, and tax efficiency.
These areas may seem straightforward, but they are often complex and subject to change. From evolving tax codes and shifting market environments to unexpected life events, providing your financial advisor with up-to-date information regarding your personal and financial situation is essential.
As the old adage goes, “the only thing constant is change.” Life can present many different situations. Shifts in income, health status, legacy goals, or overall risk tolerance can all impact the ongoing suitability of the financial advice and strategies you receive.
The Hands-Off Investor
The hands-off investor often operates under the mentality of, "I prefer not to look at my investments daily; those are for long-term, down-the-road events" (such as retirement, a vehicle purchase, or a secondary home). While this type of investor prefers to delegate daily management and strategy to their advisor, financial professionals can only provide recommendations based on the most current information available to them.
For example: If an individual experiences a shift in their career satisfaction and wishes to retire earlier than originally planned, their financial strategy may need to be adjusted to accommodate a shorter time horizon.
If the advisor is unaware of this shift and continues to operate under the assumption that retirement is still 10 years away, the existing portfolio allocation may no longer be suitable. If an investor suddenly decides they only have three to five years left in their working career rather than ten, the advisor may need to discuss dialing back risk or shifting focus toward income generation, depending on the client's specific objectives and risk tolerance.
The Hands-On Investor
Conversely, the hands-on investor might think, "I check my accounts every day, track my trades, and monitor my realized capital gains." Typically, this level of engagement leads to highly collaborative meetings and a deeper understanding of the underlying investment philosophy. However, daily tracking can sometimes create a false sense of security, causing hands-on investors to overlook the importance of communicating broader life changes to their advisor.
Monitoring your portfolio is always prudent, but like the hands-off investor, a hands-on investor may fail to provide timely updates about changes outside of the stock market.
For example: An investor might check their accounts every morning with their coffee, feel satisfied with market performance, and assume no action is needed. However, if they have recently experienced health challenges or anticipate rising medical expenses, those details are critical to the financial planning process.
Sharing this information allows the advisor to initiate important conversations regarding healthcare planning, long-term care options, ensuring legal documents like Powers of Attorney are updated, or adjusting the portfolio's risk profile to better match potential near-term liquidity needs.
The Main Takeaway
Your financial professional doesn't need to know what you ate for breakfast, but they do need to understand the meaningful shifts in your life. Whether it is a change in travel plans, a shifting retirement timeline, evolving health considerations, or market volatility that is keeping you up at night, open communication is key.
While an annual review is a vital minimum, meeting semi-annually or conducting quarterly check-ins can help keep your strategy aligned with your life. This ongoing dialogue allows your advisor to review your financial plan and offer recommendations designed to support your current financial situation and long-term goals. Contact an advisor on our team to discuss how regular reviews may benefit your financial needs and goals. Call our office today at (775)853-9033 or click here.
Based in Reno, NV, Prime Capital Financial is for individuals and families looking to grow wealth, protect and preserve their life savings, and plan for the distribution of their estate in a tax-efficient manner through a tailored strategy. Schedule a time to discuss your financial goals with us.
©2025 Prime Capital Financial. The views and information contained herein are (1) for general educational or informational purposes only, (2) are not to be taken as a recommendation to buy or sell any investment, and (3) should not be construed or acted upon as investment or tax advice. The information contained herein was obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. This information does not constitute legal advice. Prime Capital Financial and its associates do not provide legal advice. Individuals should consult with an attorney regarding the applicability of this information for their situations.