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Four Life Events that Require Financial Guidance

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Personal Finance

August 25, 2020

There are four significant events in life when you must seek financial guidance to ensure you’re on the right track with your financial future.

It would be unrealistic to go through life thinking you’ll never need financial help. Many people today take a self-directed approach when it comes to savings, investments, health care management, and college planning. But understanding how these factors and decisions work together to influence your long-term financial stability is important.

Marriage

Whether you marry during very early working years or later in life, combining finances is complicated. While creating a prenup may take the excitement out of wedding planning, it is a very important step toward merging two lives to prevent future misunderstandings and have full disclosure going into a marriage. It is even more important if either individual is bringing financial responsibilities like children or loans into the marriage.

Buying a Home

Buying a home is probably the largest financial decision you will make. There are many financial considerations, including closing costs, taxes, repairs and insurance. A home purchase could mean taking a break from saving for retirement. You need to truly understand if you can afford to buy and how much house you can not only afford but maintain too. Additionally, if you’re considering a second home or vacation home, this can be a complicated commitment that can sometimes be made using emotions, so having financial guidance is highly important.

Having Children

There’s no doubt about it, life gets more complicated with the arrival of children. Expenses will increase even before a baby arrives, from buying a stroller to decorating a new bedroom. According to the Department of Agriculture, raising a child from birth in 2015 through age 17 was $233,610, not including college. Having a financial plan in place is important so you can adjust your life to all of the new expenses. You may want to consider opening a 529 account for college expenses and buying an additional insurance plan.

Divorce

No one likes to think about the possibility of divorce, but that makes it even more important to consider. Aside from the emotional stress, the financial stress can last a lifetime. There may be real estate involved in a split, debts to settle, taxes to consider, as well as children and spousal support. During and after divorce, standards of living may likely change, requiring a reassessment of an overall retirement plan. When it comes to divorce, financial guidance is essential to ensure that the settlement is fair for both parties.

There are certainly other significant life events that also have quite a bit of influence on finances, from receiving an inheritance to aging parents to retirement. How individuals and families adapt to life events and make decisions on spending, taxation, investments and more will ultimately create a smooth road or a bumpy road through retirement. Given the range of unknowns and unexpected life events that can pop up without warning, developing a relationship with a financial professional for a long-term plan can definitely make sense.

If you have questions, schedule an appointment on our online calendar by selecting the date and time that is most convenient for you!

‍Bayntree Wealth Advisors provides comprehensive financial planning and wealth management. The Bayntree team specializes in all aspects of financial health, including retirement planning, risk management, investment advice, tax strategies, estate planning and insurance.

Bayntree does not provide specific legal or tax advice. Please consult with your tax advisor or legal professional for guidance with your individual situation.

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