The daily obligations of financial planning typically stay top-of-mind, but many neglect the significant life stages that require special attention and strategies. Here are eight key life events that could benefit from professional financial guidance.
1. Graduating from College
Progressing from school to career is a great time to get financial advice and to assess needs such as college debt repayment, savings strategies, or insurance.
Luckily, most recent graduates have time on their side, and with the power of compound interest, it’s the perfect time to discuss the benefits of saving right now. The financial foundation built now will have a major impact on the rest of your financial life.
2. Marriage or Divorce
At the time of marriage, goals such as combining finances, handling credit issues or debt problems, and building a successful financial life with your spouse would greatly benefit from objective financial advice.
On the other end of the spectrum, divorcees should ensure that they protect their finances. Important tasks like updating your will, changing your insurance policies, and protecting your investment accounts need to be handled with care and are best managed by a professional.
3. Adding a Member to Your Household
A new addition to your family brings huge financial and lifestyle changes, including the creation of college funds, updates to wills and insurance policies, and the management of a whole host of new expenses. Make sure that your new bundle of joy is off to the best start possible with the help of a professional.
4. Job and Income Changes
During a job change, a financial planning professional could help you minimize taxes by rolling over retirement accounts and making the most of your stock options. A professional can also help you adjust your financial plan and prepare for a future of continued financial growth.
5. Buying and Selling Property
If you’re buying a home, a professional can help you review your situation in an effort to maximize your tax benefits, deal with capital gains exclusions and taxes, and find write-offs and deductions you might otherwise have missed. Buying and selling property is complicated, and it’s not worth tackling on your own.
6. Illness or Hospitalization
An unexpected illness or hospitalization can strike at any time, and when it does, your finances are soon to be impacted. If you find yourself hospitalized or stricken by a sudden illness, reaching out to a professional could minimize the financial impact and help you recover more quickly. A financial advisor will also help with long-term care options and disability insurance, estate planning, life insurance, and a host of other planning topics that will have an impact on your overall portfolio.
7. Inheriting Property
Dealing with an inheritance can be complicated. If your inheritance comes in the form of a lump sum, it is important that you minimize the tax bite and address outstanding debts. If you are inheriting a retirement account like a 401(k) or IRA, you’ll definitely benefit from assistance with rollover options and investment advice.
8. Retirement
Retirement may be the most important transition in your life. From maximizing income and managing benefits to developing a distribution strategy, the right professional can be an invaluable resource.
Everyone wants to feel comfortable by establishing long-term financial security, so it’s worth taking an honest look at your current financial situation and goals and working with a financial planning professional to look over things with you.
Financial adviser, retirement wealth strategist, founder of Strategy Financial Group and author of “Climbing the Retirement Mountain,” Calvin Goetz is an Investment Adviser Representative who holds the Series 65 securities license, is life and health insurance licensed in the state of Arizona and is a member of Ed Slott’s Elite IRA Advisor Group™ and the National Association of Insurance and Financial Advisors (NAIFA). For more information, visit StrategyFinancialGroup.com.
