Are you wondering if you need a financial advisor? For those who have not worked with one in the past, there might be some confusion about when to contact a financial advisor. Most people have a pretty good idea of their day-to-day finances. However, many neglect significant life transitions that require thoughtful financial strategies. Here are 5 examples of life events when you should contact a financial advisor.
5 Life Events When You Should Contact a Financial Advisor
1. Job Changes
Some job changes are planned while others are not. Regardless of whether you have a new job, are changing careers, or accepting a well-deserved promotion, there will be some important financial considerations. For example, if you just received a pay increase along with that new promotion, a financial advisor can assist you in determining the best way to use your increased salary to reach your long-term financial goals. If you recently changed companies, a financial advisor can assist you with how to handle your former employer’s retirement account. A financial advisor can also help you to adjust your overall financial plan to account for any job changes so you can stay on track for a secure financial future.
2. Marriage or Divorce
It is common knowledge that finances are often a source of marital stress. To prevent this, start your marriage with a strong foundation by having a solid financial plan in place. Working with a financial planning professional to guide you through the process of creating common financial goals can provide structure to eliminate finance-related arguments.
On the opposite side of that, going from one household to two is a major life change. It is rare that I see both spouses equally involved in the finances throughout the marriage. Thus, having the support of a financial advisor who is also a Certified Divorce Financial Analyst (CDFA) can be very beneficial. A CDFA can educate you about your financial options and make sure you understand the short and long-term implications of your financial decisions. Following your divorce, a CDFA can work with you to update your estate plans, change your insurance policies and make sure all asset transfers happen per your separation agreement.
3. Adding a Member to Your Household
Whether you are having your first child, adopting, caring for an aging parent, or have another event that changes the members of your household, it is a crucial time for financial planning. Adding members to your household often means substantial changes to your income and/or your expenses. Your budget needs to reflect your new reality. Insurance policies and wills may need to be updated. College funds may need to be established. Ease your financial transition by working with a professional.
Most people seem to recognize the importance of speaking to a financial planning professional about retirement. For many, retirement is a transition that is planned over the course of many years. However, some find that they are retiring out of necessity rather than due to their plans. Regardless of the camp that you fall into, careful planning is essential. A thoughtful approach to retirement income is key to making your assets last as long as possible.
5. Loss of a Loved One
The loss of a loved one can be one of life’s most traumatic events. Even while you are grieving, it is important to acknowledge that there has been a major change in your financial situation. Do not make any rash decisions immediately following the loss of your loved one. However, sound financial advice is crucial to navigating this difficult time.
Our specialty is working with clients through life transitions, whether big or small. Let us help you manage your money better. We will partner with you to navigate the financial changes in your life so you can feel confident in your financial future. While I am based in Ohio, I maintain an active online presence and meet with clients virtually throughout the country. Schedule your free consultation today and learn how we can help ease your transition.