Your Retirement … with Brain & Bob: Nine life changes requiring financial guidance can impact families

Published in the February 20 – March 5, 2019 issue of Gilroy Life

With interconnectivity more present than ever, the pace of everyday life is much faster than it used to be. With our daily cadence sped up, stress related to changes in life can push you over the edge. Financial planning geared toward catering to major life events can reduce this feeling. Below are nine life events that trigger planning discussions to ease concerns.

1. Marriage or Divorce — Whether a couple is tying the knot or dissolving their marriage, professional financial advice can be helpful. A review of goals is necessary when combining finances, addressing credit or debt, and creating a plan for your financial future. In divorce, splitting finances can pose challenges. A couple should protect their finances and make necessary changes to joint accounts, insurance, beneficiary designations, and more.
2. The Birth of a Child — A new addition is a joyful event but it can also come with changes to finances as well as a couple’s lifestyle. College planning and a budget review will need to be discussed. Also, wills, trusts, and insurance policies should be updated.
3. College Graduation — Graduating from college is a giant step toward becoming a successful adult. Along with that comes career choices and the perfect time for financial advice. A needs assessment addressing debt repayment, insurance, and savings is critical.
4. Job and Income Changes — Changes in employment and overall compensation can trigger considerations important to your financial future. Addressing retirement accounts and devising a plan for saving that is comfortable will be key for growing your financial portfolio.
5. Purchasing or Selling Property — Buying and Selling a home can be one of the largest financial decisions a person will face in their lifetime. Make sure you work with a professional sensitive to your needs. An in-depth review of the situation is needed to make sure your payments are comfortable. After all, no one wants their financial plan adversely affected by overextending themselves.
6. Estate Planning — Working with a financial professional to address estate planning needs can be to your benefit. They cover topics like wealth transfer, living trusts, insurance to pay estate taxes (if applicable), asset distribution, and even business succession. Creating a plan that is turn-key eases the burden of settling your estate during a time of grieving. Estate planning is an art that helps ensure your wishes are executed after your time of passing. A living trust addressing who gets what and when can leave a legacy for generations to come.
7. Hospitalization or Illness — Unexpected health problems or hospitalization is often a concern for many of our clients. Statistics show end-of-life medical care including long-term care can cause a person to rifle through accounts or even sell their residence to be able to meets costs associated with care. Medical inflation is estimated to be 5.47 percent per year. With inflation just shy of 3 percent annually and wages not increasing at the same rate, planning for the unexpected is more important than ever.
8. Retirement — The process of retirement planning can be difficult without proper guidance. It is important to work with a professional who can help leverage your savings in a way that addresses your goals while providing wiggle room for unexpected life events. Protecting a portion of retirement savings from loss should be discussed in conjunction with your risk tolerance so you are comfortable no matter what challenges life throws at you.
9. Inheritance — With the passing of parents or loved ones can come inheritance of some kind. Whether it is the death proceeds from a life insurance policy, retirement accounts, a residence, or unsecured debt, advice from a financial professional can help better leverage these assets in a way that coincides with your goals.

Brian Harrigan and Bob Price are the owners of Executive Plan Design. They can be reached at (408) 767-2572.