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
November 28, 2016
As a financial planner with a young daughter, I want her to learn about personal finance at the same time she learns about other concepts in the world. The question in my mind has always been, "What is the right age?"...
November 23, 2016
There are many things to consider when you are looking to hire a financial advisor, and many people are not sure which questions to ask. This article from Inc.com shares a few items to keep in mind when looking for...
November 9, 2016
Whether you find the election results exciting or shocking, we are now faced with the question, "What's next?" With respect to your investments, here’s a quick reminder of how we feel about that: Ample evidence informs us that it is...
October 24, 2016
Stock Markets It was a pretty good quarter for stocks, with the riskier small-cap and emerging market stocks leading the way. REIT’s gave back some of their robust returns of prior periods. The year-to-date numbers for stocks are solid as...
October 21, 2016
Managing clients’ financial assets is at the heart of what we do here at Rockbridge. However, having a well thought out investment portfolio will only get you so far if every facet of your financial life is not addressed correctly...