Life is full of twists and turns, a number of which can have outsized impacts on your finances. Whether you’re saving for retirement, buying a home, or planning for your children’s education, building and monitoring a financial plan throughout your lifetime is critical to achieving holistic financial wellness.
Here are some of the major milestones that can impact your finances—and some of the ways in which financial planning can help you along your journey.
Making Career Moves
Anytime you get a new job, you’ll face a number of decisions based on the salary and benefits package. Should you open a Health Savings Account (HSA) or Flexible Spending Account (FSA)? How much money should you put in your 401(k), if provided by your employer? How much money should you be allocating to an emergency savings account?
Financial planners have conversations about saving and savings vehicles every day. They have the tools and experience to help increase your savings and investing plans while still allowing you to enjoy the present.
Buying or Selling A Home
Buying or selling a home is a major financial decision—one that a sound financial plan will help you prepare for.
You will need to have the right amount of savings for a home purchase, as well as a budget that accounts for the expenses that come with home ownership. Your financial planner can help you estimate these expenses and evaluate whether you’re on sound financial footing for the purchase.
According to the Financial Planning Association, there are two common myths when it comes to buying a home: it’s always better to buy than rent, and a home is always a good investment. A financial planner will help evaluate your own situation and see if a home purchase fits with your other financial goals and how to best go about making home ownership a reality.
Creating An Estate Plan
Too often this portion of financial planning is saved for the end of a consultation, when perhaps it should be one of the first things on your to-do list. “Estate planning is by far the most forgotten area of financial planning,” according to the Certified Financial Planner Board of Standards. “It is also one of the greatest pitfalls of personal wealth.”
Take the time to consider and build an estate plan. Learn about the differences between a will and a trust—and which legal document is appropriate for the right scenario. Consider how you want to pass along your assets. Is charitable giving in your future? Or perhaps you want to provide a cushion to your loved ones?
Today’s estate plan can make a big difference tomorrow.
Paying For A Child’s Education
There are a number of financial vehicles for paying for a child’s education, from simple savings accounts to 529 plans and Uniform Transfer to Minors Act (UTMA) accounts. Each account type has its advantages and disadvantages, including tax considerations, which a financial planner can help you navigate.
Retirement
Retirement may seem like the monolithic finish line at the end of your financial plan, but it involves lots of preparation that can stretch for years before you put in your final notice. Don’t wait until retirement is in sight to start building your plan.
Retirement planning starts when you begin saving for retirement. A financial planner can help you pick the right retirement savings vehicles to use, navigate difficult decisions about taxes and estimate future costs.
Before you retire, you will need to make sure you have enough savings to last for your entire retirement, including covering your healthcare costs and perhaps leaving assets to your heirs. A sound financial plan will provide guardrails for your retirement, giving you more financial confidence when you enter your golden years.
Odyssey Group has helped clients navigate these financial planning milestones with confidence. Get in touch with one of our financial planners today.
