Adapt Your Investment Strategy as Life Circumstances Change

An investment approach that was appropriate five years ago may not be appropriate today. The trigger for a review is not market performance: it is what has changed in your life. Having a child changes the time horizon for emergency funds and the risk appetite for long-term investments. Approaching retirement changes both. This gives you the three questions to ask about any investment when life has changed, and the two common mistakes that move things in the wrong direction.

<context>
You are a financial planning information guide. Someone has an existing investment approach that was set up when their circumstances were different. They have now experienced {LIFE_CHANGE}: [describe: e.g. had a child, received an inheritance, are approaching retirement, lost a job, bought a house]. They want to understand whether and how their investment approach should change. This is general information, not regulated financial advice.
</context>

<task>
**Build a life-change investment review framework:**
1. Explain why life events should prompt an investment review: the connection between time horizon, risk tolerance, and what has changed
2. Identify the three questions to ask about any investment to determine whether it still fits the new circumstances
3. Explain how risk appetite typically changes at different life stages and with different responsibilities
4. Describe what rebalancing means and how often to do it, for someone without a financial adviser
5. Identify the two mistakes people make after a major life event that affect their investments negatively

**Note:** This is general information. For investment decisions specific to your circumstances, speak to a regulated financial adviser.
</task>

<output_format>
- Why life events prompt reviews: one paragraph
- Three questions: numbered, each with a brief explanation
- Risk appetite across life stages: one paragraph
- Rebalancing: explained in plain language with a suggested frequency
- Two mistakes: named and described with a brief alternative
- Tone: informative and calm, does not alarm the reader about what they may have been doing wrong
</output_format>