10 LIFE-CHANGING EVENTS TO DISCUSS WITH YOUR FINANCIAL ADVISOR

The only thing we can count on with changes in life is that they’ll happen again and again. Some changes lift us up. Others bring us down. All transform us one way or another.

How have you navigated life’s inevitable curveballs? Likely, with a tribe of trusted people.

Life changes also can necessitate a change in your financial plan. Someone who should be part of your trusted tribe, a financial advisor can offer helpful advice and make needed adjustments to your financial plan to keep you firmly on track, no matter what life throws your way.

CHECK IN WITH YOUR FINANCIAL ADVISOR WHEN …

Saying ‘I Do’

It’s especially important if this is a second marriage, or you’re going into the marriage with significant assets, to discuss next steps with your financial advisor, as there may be estate and tax implications. Proper titling and management of assets also is vital.

A tip for all love birds: Before tying the knot, share personal financial histories and disclose everything, including the not-so-good parts of your finances. Talking about money now will ultimately bring you closer to one another and make it easier to plan. 

Having a Baby

According to a2023 study by SmartAsset, the average cost to raise a child in the U.S. is $20,813 annually. You can do some things to minimize the monetary drain and maximize the cuddles, however. Sit down and map out with a financial advisor how you can start saving to better manage these costs, including starting college savings funds.

Buying a Home

Whether you’re looking at a condo or a sprawling estate, a home is likely the largest purchase you’ll ever make. Three pieces of advice:

• Don’t let emotion overtake your buying or selling decisions.

• Be sure you’re financially prepared and organized to move ahead. For example, save for a down payment. A 20% down payment avoids PMI on a conventional loan.

Getting a Divorce 

Though this may be one of the hardest times in your life, checking in with your financial advisor may alleviate some stress. For example, a financial advisor can use cashflow modeling to show what your single life could look like financially. More than anything, you’ll know you have someone in your corner, looking out for your best interests.

Remember:Involving a financial planner early on can help shape the divorce settlement.

Planning for Retirement

Thinking about retiring? Put the new boat or next vacation on hold until you meet with a financial advisor. Because retirement comes with new financial considerations, like accounting for increased insurance and learning to access social security funds, you may need to develop a new budget.

CHECK IN WHEN THESE LIFE EVENTS HAPPEN TOO …

Getting a Raise

Congrats, all around. Now, let’s get serious about making that new money work for you. A financial planner can help navigate your new financial situation—a pay raise may move you into a higher tax bracket, for example—set goals and take advantage of any new benefits or compensation options you’ve received.

Starting A Business

Even if it’s a part-time gig and you’ll be staying at your 9-5 gig for the foreseeable future, run this new endeavor by your financial advisor. They’ll likely offer guidance on taxes and record keeping, and how to build your business while also paying yourself to sustain your desired lifestyle.

Selling Your Business (Or Inheriting Money)

Remember that part-time gig you told your financial advisor about years ago? Now you’ve built it into big business and are selling it. Or you received an inheritance. You may be tempted to blow the first few thousand on dreams of things you have always wanted to do if you had the money to do them.

Tamp the flames: Slow it down, let the adrenaline and excitement subside, and before you spend any money, consult with a financial advisor for expert recommendations on how to spend, invest and save the money in the right buckets to make the best decisions for you and your family. 

Figuring Out Social Security

Social Security is one piece of your retirement plan, but it’s a mighty powerful piece. Choosing a certified financial planner—they’ll have a CFP designation after their name—often means your advisor will be better versed in figuring out how to work Social Security payments into your long-term financial plan.

Did you know? You may be eligible to collect Social Security as early as 62 but waiting until age 70 may yield greater benefits.

Dealing With a Serious Illness or Disability

Managing a serious or chronic illness can easily consume most, if not all, of your time. Don’t go it alone. Let others help where and when they can from everyday tasks, like grocery shopping, to finances. A financial advisor can help lighten the load by reviewing health and disability insurance policies with you to ensure adequate coverage, and helping you to prepare financially by establishing a budget, cutting costs and prioritizing expenses.

Life throws us curves. Alia Wealth Partners will make sure your financial plan is always on the straight and narrow. You can count on that. To learn more about how we can help, contact us today.