Years go by with casual spending and saving until one day a major life event materializes. It could be a happy moment such as a marriage, retirement or an additional child. A life event could also be a sorrow-filled experience of a death, a divorce or a loss of a job. Regardless of the event, financial planners can add the most value for clients in key life phases.
Objectivity – A financial planner will provide an outside view of the situation and deliver an objective opinion. A simple, fresh perspective can enlighten a path in a confusing time of life.
Scenario Analysis – A financial advisor can analyze the what-if scenarios that run through a client’s mind and streamline the decision making process. How much can I retire on? What happens to my children if I die? How will this marriage affect my savings? Answering these, and many more similar questions, can give a client peace of mind in a confusing time.
Planning for the Unknown – Another key concern in a life transition is understanding future unknowns. Each transition causes a unique set of new circumstances to analyze and plan for. Although the federal estate tax limit is greater than $5 million dollars for an individual, did you know the New York State limit is $1 million? How do you plan on avoiding the New York State estate tax while minimizing the loss of control when gifting money? Digging deeper into the unknowns can protect a family’s wealth and minimize planning mistakes.
Simplifying the Complex – Life transitions come with complexities. For example, a client on the cusp of retirement came to us with nine different retirement/investment accounts and a dozen various funds in each. With account consolidation and unified reporting, we were able to properly diversify the portfolio and illustrate all of the assets on a single sheet of paper. An advisor can help streamline the financial portion of a life transition so that you can focus on the aspects that matter to you!
Other articles filed under Family Finances
May 11, 2016
The default investment option for the Lockheed Martin Salaried Savings Plan (SSP) and the Capital Accumulation Plan (CAP) is the managed Target Date funds. A Target Date fund is designed to capture the entire investment market in a single fund. ...
April 29, 2016
Lockheed Martin MST recently announced the upcoming Voluntary Layoff Program with the goal of reducing the divisional workforce by 1,500 employees. If you are considering retirement and are eligible for the Voluntary Layoff Program, it may make sense to deeply...
April 28, 2016
When evaluating a financial advisor, the most important factor is that they truly understand you as a person and your personal situation. At Rockbridge, we have a dedicated focus in working with clients that are employees of Lockheed Martin. Because...
April 14, 2016
Stock Markets After January’s rough start, stock markets bounced back nicely in March, bringing most numbers into the black for the quarter. Domestic Small Cap and International Developed Markets are the exception – down about 1.5% and 2%, respectively. Notice...
April 11, 2016
I will make the argument here: Most people would rather go to the dentist than get their estate documents (Living Will, Power of Attorney and Health Care Proxy) in order. Why? The dentist appointment usually only lasts an hour and...