Year 2000 may be better remembered for the meltdown of the global equities markets rather than Y2K. Tech stocks investors, in particular, suffered staggering losses. Some highly aggressive investors saw their entire portfolios virtually wiped out. But it should not take a market meltdown to show you why it's so important to re-evaluate your financial plan periodically to make sure you're still on track to achieve your financial goals.

Your financial plan could be vulnerable to even minor "hiccups" such as a health emergency or the birth of a child. However, you don't need to revise your financial plan all the time. For most people, an annual revision is fine. For others, once every two years is adequate. In fact, there's an inherent danger in reviewing your plan too often. The more often you review it, the more you're going to look at current events, such as the current status of the stock market. The fact is you'll make better decisions if you look at your investments less frequently, over a longer time frame.

Your financial review should focus on these items:

Year 2000's volatile market means your portfolio might be in need of a review, to make sure it is balanced appropriately. When you conduct this review, look at your entire asset base, including all retirement savings, not just your brokerage account.

Taxes

Early in the year is the perfect time to identify ways to lower your taxes, because you've got all year to put your plan into effect. Most people wait until December, and by then, it's too late to do anything.

Mortgage

With the easing of interest rates across the globe, have you considered refinancing your housing loan? Refinancing just might save you a lot of money. It's an idea worth considering.

Insurance

Your life, disability, long-term care, and property coverage needs periodic review. Your need for insurance doesn't change frequently, but not being prepared can have tragic consequences for your family. Make sure you have the type of coverage you need, and that you're not overpaying for it. Increasingly, long-term care insurance is viewed as an estate preservation tool. It's not uncommon to see couples buy it to ensure their assets remain for their heirs. Do you own umbrella insurance? This provides additional property and accident coverage, beyond your homeowner's and automobile policies. It's inexpensive and incredibly important.

College saving

It's never too early to start saving for your children's education requirements.

Retirement saving

Are you sure you're saving enough? For this type of planning, work backwards. You need to know how much money you'll want to have when you retire, and how many years away that is from today. Then you can determine how much to save each month. Your review can help you make sure you're on track.

Estate planning

Are your legal documents current with the law and with your family's changing circumstances? If it's been more than five years since you read your will, go read it. You might be surprised by what it says.

Reviewing your financial plan doesn't take a lot of time, and you don't have to do it often, but it's vital that you do it periodically. A periodic review of your financial plan will help you identify and limit the threats to your financial freedom, build upon your talents and strengths, and take advantage of the tremendous opportunities of your time. So, go on. Review your plan and find out if it is sufficiently flexible and properly positioned to survive financial stress.