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!
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