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
January 21, 2016
Stock Markets In 2015, domestic large cap stocks (S&P 500) and REITs were up while other markets were down – emerging markets were off big! The positive results in the S&P 500 were driven by just two stocks – Amazon...
January 20, 2016
One of the tenets of successful long-term investing is the practice of portfolio diversification. Through diversification, investors can increase their expected long-term return for a given level of risk (volatility). This is accomplished by investing in assets that are not...
January 19, 2016
2015 was an exciting year of growth and change at Rockbridge. Market returns were less than ideal for the year, but we continue to see growth in our fee-only business model as prospective clients seek out unbiased advice and professional...
January 15, 2016
When we go to a good action flick, we enjoy the suspense and surprises, but no one wants that experience when investing. James Bond and Mission Impossible would not be box office hits without some interesting plot twists, and an...
January 13, 2016
Our Rockbridge team is continuing to grow, and as a new member, I would like to take a moment to introduce myself. My name is Lisa Cellucci. I was born, raised, and educated right here in Syracuse. Even as a...