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
September 1, 2016
It’s no surprise that this year’s U.S. presidential race has become a subject of conversation around the globe. In “Why Our Social Feeds are Full of Politics,” Canadian digital marketing executive Tara Hunt observes, “American politics, it seems, makes for...
August 19, 2016
We all know the importance of getting your finances in order and creating a financial plan when you are on the brink of retirement. However, creating a “leisure plan” can be just as important to a successful retirement. This recent...
July 20, 2016
Stock Markets Just look at the short-term variability in the various equity indices shown in the accompanying chart. It shows how markets behave through time – some markets are up substantially while others are down. Of course, this variability is...
July 18, 2016
Although our name is Rockbridge Investment Management, there are many services that we provide to our clients beyond managing investments. We wanted to share just a few of these additional skills with our clients. General Questions We are here for...
July 14, 2016
The recent vote in Britain to exit the European Union is yet another reminder of how markets often react negatively to surprises. We cannot help but ask ourselves, “Is it different this time? Maybe this is the event that upends...