10 Life Events That Require Financial Planning

Sometimes even the best events in life – a birth, new job or dream relocation, need a financial plan. They might require more insurance coverage, a new budget, or guidance from a financial advisor. Here are 10 life events that should inspire you to do some financial planning:

1. The opportunity to buy a vacation home.

Summer rental homes can represent bliss, that great escape you have every year. Summer homes are often bought as emotions rise at the end of the season. But purchasing a vacation home can be a complicated long-term commitment. A financial planner, not a real estate agent, can tell you what to consider.

2. You got that big raise you’ve been counting on for years.

Pay raises are typically small and incremental, so getting a big raise is cause for celebration. They also mean it’s time to do some financial planning to determine how much you should be saving for the future, too. It might be time to bump up your retirement savings. Talk with your financial advisor ASAP!

3. Wedding bells are ringing, finally.

Couples might be marrying later these days than they used to. So when they finally do tie the knot, combining finances can be even more complicated. Prenups might be a buzzkill, but they can help protect each person’s savings and prevent any misunderstandings. They are especially important if either member of the couple is bringing children into the marriage.

4. You got your diploma.

Graduates might not think they have enough money to talk to a financial planner, but they face key money choices as they start repaying their share of the overall $1 trillion in college debt with “starter” jobs. They could certainly use help prioritizing payments for credit cards and student loans.

5. You’re relocating.

The 50 states can be as different as moving to another country. Tax rates differ and cost of living can shift dramatically. There are scores of moving-related expenses too. Make sure you do your homework and are prepared.

6. You just got an inheritance.

Baby boomers stand to inherit significant wealth in the coming years, and receiving lump sums also carries with it financial responsibility. It can raise questions about spending habits, charitable contributions, tax payments and a multitude of other concerns. You might want to get help from a professional as you figure out how to handle this money.

7. You’re expecting a new arrival in the family.

When a baby arrives, life inevitably gets way more complicated. It could be worth it to factor in some financial planning alongside baby naming or stroller shopping. You might want to open a 529 savings account (for future college), as well as take out additional life insurance policies.

8. You got your first real job.

Your college grad may act like they just want to have fun, but they often need guidance during this key life transition. Consider sending your child to a financial planner before they enter the workforce.

9. You get offered a generous severance package.

Emotions often run high when your employer offers a big severance package. It’s important to understand the complex financial issues associated with severance packages. You want to make sure you understand all the fine print before you sign on the dotted line.

10. You retire.

Retirement is considered the pivotal financial moment in a person’s life. If you haven’t already worked with a financial planner to figure out your plans and budget, then now is the time. In fact, financial advisors urge even clients in their 20s and 30s to start planning for this major life transition, to make sure they’re saving enough during their peak earning years. It’s also a good time to reflect upon what you’d like to do with your retirement.

To set up a complimentary consultation with the Investment & Retirement Center located at First Financial Federal Credit Union to discuss your savings goals with a Financial Advisor, contact us at 732.312.1500 or stop in to see us!*

 *Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free 800-369-2862. Non-deposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.

Article source: U.S. News Staff for money.usnews.com


1 thought on “10 Life Events That Require Financial Planning

Leave a Reply to Christopher Jacob Cancel reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s