Completing a financial review can give you a roadmap for your budget and help you better understand your holistic financial picture. It is important to have an individual holistic plan based on your unique financial needs and goals. Discover what to prepare and what to plan for during a financial review below.

What to prepare for a financial review?

Assets and debts

  • Track your current account balances, including checking, savings, money market and other accounts in your name.
  • Get up-to-date balances of investments you currently hold, such as your retirement accounts, and take note of how much you are saving in each account, along with your rate of return for each account.
  • Gather the cost of all debts tied to your name, such as student loans, car loans, mortgages and credit cards.

Expenses and income

  • Calculate the average of your total monthly household expenses.
  • Find the average of your total monthly household income. Be sure to count everything that generates money for you. .
  • Make a list of any upcoming large purchases and other expenses you will soon need to pay for.

Set your goals

  • Make a list of major short- and long-term financial goals.
  • This could planning for a vacation, saving for a down payment or paying down debt.
  • Or your goals could be starting a savings fund. Whatever is important to you should be shared during your financial review.

Prepare all of these documents and items ahead of meeting with your financial team where you will sit down and review everything together and put the pieces of the puzzle in place.

What does a financial review look like?

Sitting down for a financial review might be intimidating, but the meetings are actually pretty painless. Usually, a financial review will take place in a bank building or you could do it virtually wherever you are comfortable. During the meeting, you will review all the documents you prepared listed above and you will discuss any goals or concerns with your financial team. Then your financial team will be able to educate you about different ways to budget and save to achieve the goals you’ve outlined.

A financial review meeting should be something you do annually to discuss different financial priorities you might have. Life changes quickly and it is important to be prepared for whatever might come your way – a financial review can help you and your team anticipate any curveballs.

What questions will you answer during a financial review?

Your financial review might refer to the questions they ask you as discovery. Don’t worry, this isn’t a deposition, but instead an opportunity for you to share the nitty gritty details of your finances with your team. The more open and honest you can be, the more in-depth holistic plan your team can create for you. Some of the questions you might answer during a financial review include:

  • What does your budget look like?
  • What does your savings plan look like?
  • Where do you hope to see these two plans change in the next year?
  • What are your financial goals for the year?
  • What are your financial concerns for the year?
  • What and who is important to you?

The more you can share with your financial team the better and know this information is all confidential and you should only share what you are comfortable with.

Financial review topic reminders

During your financial review, you’ll want to remember to bring up the following topics with your financial team. Your financial team will most likely have these covered in their questions, but it never hurts to be prepared on your side too.

  • Retirement – review your retirement goals and ensure you are saving enough. Bring different account statements with your so your financial team can see the full picture of what you have saved and where you can fill in gaps.
  • Education – if you have loved ones you would like to support through education, make sure you discuss this with your team so it can be built into your savings plan.
  • Charitable giving – it is important to share with your team if you would like to donate any funds to organizations that you care about so it can be built into your financial plan.
  • Estate planning – everyone can benefit from an estate plan. This should definitely be something you discuss with your team so in case the worst happens, your loved ones know exactly what to do with your funds.
  • Healthcare spending – this cost can sneak up on you and quickly derail your finances. Discuss your health benefits, account and future spending with your team to try and anticipate what the year ahead might look like.
  • Life events – Are you planning a wedding or are you expecting a baby or are kids getting ready to leave the home? Maybe you are preparing to retire! Whatever life stage you are in should be shared with your financial team so they can prepare your financial plan accordingly.

A full financial review can take anywhere from hour to 90 minutes. Your financial team can help you determine how much time you need to dedicate to this meeting. In addition, preparing all your documents for the financial review could also take some time so don’t forget to start early to prepare everything you need. As you do this annually, it will become easier to pull everything you need for a financial review together. Understanding your holistic financial picture can ensure you are ready for whatever the future holds.

UMB personal banking solutions offer convenience and simplicity to meet all your financial needs. From home loans to auto financing and everything in between, see how UMB personal banking can work with you to find the right products for your life and lifestyle.