Major life events bring about a wide range of emotions, from the joy of a newborn to the pain of an unexpected death of a spouse. While financial issues may not be high on the priority list during a major life change, these times tend to be the most critical for financial planning. In this article we will look at four situations in which a financial advisor can help.
New addition to the family
Whether it be a new baby or adopted child, adding a member to the family is an exciting time. Between sleep-deprived nights and quick trips to the store for diapers, not many parents are immediately focused on tax-deferred education savings plans or making sure their family would be protected in the event a parent passed away. A comprehensive financial plan can ensure you have the right savings vehicle in place and the right type and amount of life insurance coverage needed based on your situation.
With kids out of the house and on their own, empty nesters may have more discretionary income than they’ve ever had. Do those funds need to be invested to help fill a retirement shortfall, or can they be spent on the 2nd home they have always dreamed of? An advisor can help evaluate the situation and determine what’s needed and what’s possible.
The division of assets during divorce can be tricky. What looks equitable on paper may not actually be the case based on the liquidity and taxation of the assets. A financial advisor, especially one with the Certified Divorce Financial Analyst designation, can help you work through the financial details in coordination with your attorney to help negotiate equitable terms. An advisor will also help you understand what a final settlement means for your financial future, and how to reach your financial goals in your next chapter of life.
Finances tend to be the last item people want to think about when a spouse or loved one dies, but finances and money management become necessary topics of discussion. For older widows, it may be the first time they have had to handle financial affairs. Younger widows might be faced with finding childcare and replacing a second income. A financial advisor can help you to proactively mitigate the financial impact of an untimely death, as well as help to manage your finances in such a difficult time.
Financial advisors can provide invaluable advice during dramatic life events. Our next article will focus on how a financial advisor can help make sure you are making the right financial decisions when it comes to job changes, stock-based compensation, and salary changes.
If you are experiencing a major life event and would like to talk to one of our advisors, please contact us here.