What Is a Financial Check Up, And Why Is it So Important?

May 19, 2017 | Blog, Fiduciary

We ideally visit our health practitioners annually because we know it’s a smart, proactive move. More often than not, we come out reassured knowing we’re on track for good physical health. If there are any issues, we’re able to nip them in the bud by catching them before they grow into a bigger issue.

In a holistic sense, however, your physical health isn’t the only aspect of your life where a checkup can be useful. When it comes to your financial life, a check up can be just as useful and important.

What would the financial equivalent of your annual physical look like?

You can have your financial check up annually, quarterly, or even monthly – the key is that you’re making a conscious effort to check in. Similar to a physical, your financial check up entails meeting with your financial advisor to ensure you’re on the road to good financial health.

Why is a financial check up important?

A financial check up is important because it allows you to maintain the key elements of a holistically healthy financial life:


Plenty can change over the course of a year (or less) in your own life. These major changes – having a child, purchasing a home, or moving, for instance – can impact your financial goals and needs. Smaller changes, like a variation in income or increased spending, can also affect your financial roadmap. A financial check up is a proactive step that allows your financial advisor to account for these moves.

Additionally, this is also a great chance to discuss any upcoming life changes you anticipate in the horizon. That way, you can help anticipate any needs, and to adjust your financial plan accordingly.


A financial checkup also gives you the opportunity to have a clear sense of all the moving pieces that affect your financial life. In a sense, this is similar to the reassurance you get after you visit your doctor and become aware of everything involving your physical health.

The right advisor will review every aspect of your portfolio with you in clear, easy-to-understand terms, so you have a clear sense of where you’re at financially, and where you’ll be going in the future.


Whenever needed, you can ask questions about anything in your financial life that you’re unsure of. Whether it’s a question about your current goals, or your retirement plans, this is a chance to become educated and ensure you have a solid understanding of your financial life.

When you get your physical, do you visit a doctor or a pharmaceutical sales representative?  

Similar to doctors, fiduciary advisors must uphold the highest legal standard, and can only give advice that’s in your best interests. Unfortunately, most big banks and brokerages are held to a lower suitability standard, meaning their advice only has to be deemed “suitable” – and they have leeway to make commissions and hidden fees. This would be the equivalent of visiting a pharmaceutical sales representative for your annual physical.

At LexION Capital, we’re a fiduciary firm that always welcomes and encourages financial check ups for our clients. If you’d like to learn more about our fiduciary services, let’s have a conversation.





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