JUST like your car, your finances need regular maintenance to ensure optimum performance.

Even if you have a solid financial plan in place, it still needs to be updated from time to time to ensure it reflects any life changes.

A holistic financial plan will have a lot of moving parts and variables to consider.

It is the complex way in which these dovetail and complement each other that makes professional advice so important.

Re-balance your portfolio

A lot can happen in 12 months and events can mean that your investments may need to be revisited.

Some might simply not be performing while others might be doing so well that it could be time to take profits; it is usually wise not to become over-exposed in a particular company or sector.

Surviving the sandwich generation

Whether it is nursery and childcare costs, school-fees planning, university fees, helping your kids with a house deposit or a first car purchase, it is all a drain on the family finances.

At the same time, you may very well find yourself caring for elderly relatives whose health may be deteriorating – it is an increasingly common demographic phenomenon and has been coined the “sandwich generation”.

Check your insurance policies

Many people who have previously received some advice may have insurance policies such as income protection, life assurance and critical illness.

Rather than automatically renewing them each year, check that the amount of income you are insuring is still appropriate.

Have you had a pay rise? Have you increased your mortgage or have you paid the mortgage off?

You may need to increase or decrease your cover accordingly.

Are your retirement savings on track?

One of the most common challenges is building a big enough retirement fund.

This may mean topping up your pension as much as you are permitted each year, or switching funds altogether.

There are potential solutions but it is complex and advice is needed.

Check your total pensions balance each year and check with an adviser to see if action is necessary.

Boost pensions and savings by investing tax-efficiently

There is a huge array of government-sanctioned tax allowances targeted at savers, investors and families but many have to be actively claimed, requiring assertiveness on your part. Have you used all your ISA allowance? It is worth £20,000 this year.

Have you opened an ISA for your children? Are you utilising your capital gains tax allowance?

Using all of your gifting allowances should probably be part of your annual financial calendar.

Sell the dogs

All portfolios accumulate the occasional poor performer.

The problem is, investors can be strangely emotional, becoming attached to holdings they have owned for some time, becoming reluctant to sell in the vain hope it will recover.

But sometimes you just need to bite the bullet.

A dog share can drag down your portfolio so try and be ruthless and admit to yourself when a share or fund needs to be ditched.

If you are not sure, seek advice.

Having an independent adviser assess your portfolio takes the emotion out and allows and objective analysis of your savings.