Life is full of significant milestones, each with its own set of financial challenges and opportunities. Making the choices when each of these events occur can not only result in good fortune throughout your life, but also through generations to come. A financial adviser can be an invaluable partner in helping you make informed decisions and secure your financial future.
Here are 10 common life events where the need for financial advice can arise:
1. Starting Your First Job
Entering the workforce is an exciting and transformative time. You may not think that financial advice is necessary at such an early stage, but even your first job comes with financial responsibilities that can shape your future.
Engaging a financial adviser early in your career can help you establish a strong financial foundation. We can guide you in creating a budget, setting up a savings plan, and discuss investment options for surplus income – no matter how small that may be at this stage.
If there’s anything we’d want you to take away from a meeting with us at this point in your life, it would be compound interest, compound interest, compound interest!
From little things, big things grow.
2. Getting Married
Marriage is a significant life event that combines not just lives but also finances. Whether you’re merging bank accounts, setting joint financial goals, or planning for future expenses like buying a home or starting a family, a financial adviser can help you navigate these new financial dynamics.
3. Buying a Home
Purchasing a home is one of the most substantial financial commitments you will ever make. The process can be overwhelming, with numerous factors to consider, such as deposit payments, mortgage options and long-term affordability.
It’s wise to bring a financial adviser on board as soon as possible. That way, we can help you set savings goals for a deposit, understand your current expenditure and where you can make changes to improve your situation, and even review how your home purchase fits within your broader financial strategy.
4. Starting a Family
The decision to start a family is a joyous occasion, but it also comes with new financial responsibilities. From the costs of childcare to planning for your child’s education, you have a lot to consider. A financial adviser can help you prepare for these expenses, adjust your spending, and ensure that you have the right insurance coverage in place to protect you and your families future. They can also assist in setting up education savings plans and revisiting your estate planning needs which will change over time.
With little people to look after who can’t look after themselves, it’s also wise to revisit insurance policies to see how you would fare if two incomes were to drop to one, or if the sole provider would suddenly be unable to work for a period of time.
As soon as you make the decision to expand your family, make an appointment with your financial adviser to discuss the implications and how your financial future will be affected.
5. Career Change or Job Loss
Whether you’re making a career transition, starting your own business or facing unexpected unemployment, these changes can significantly impact your financial situation. A financial adviser can help you navigate these periods of uncertainty by reassessing your financial plan, managing cash flow and exploring new investment or savings strategies. Are you entitled to unemployment benefits? How should you manage a redundancy package? Are just a few questions that can arise at when the unexpected occurs.
If you’re thinking of a career change or starting your own business, it’s pivotal that you talk with your financial adviser early in the process so you’re fully aware how such decisions will impact you financially, and how best to navigate the changes.
6. Inheriting Wealth
Receiving an inheritance can be both a blessing and a challenge. What to do with all this money? It’s crucial to handle this newfound wealth wisely to ensure it contributes positively to your financial goals. A financial adviser can help you manage your inheritance, whether it’s through smart investments, paying off debts or planning for taxes.
7. Planning for Retirement
Retirement planning is essential for securing your financial future. Whether you’re thinking about taking that next step or nearing retirement age, a financial adviser can help you develop a comprehensive retirement strategy. This includes determining how much you need to save, managing your investments, and deciding on the best time to retire. We can also provide guidance on pension plans and incorporate potential expense changes in retirement for example healthcare, holidays, downsizing costs, all of which can affect your retirement, as well as the rather complex world of aged care facilities further down the track.
Retirement is one of the biggest life events we’ll experience, and planning for it should begin well before it’s on the horizon. Indeed, retirement planning should be embedded into all the financial decisions we make along the way.
8. Dealing with a Serious Illness
A serious illness can have profound emotional and financial impacts. Managing medical expenses, understanding insurance coverage and ensuring ongoing financial stability can be daunting.
Like many life events, to be managed well a serious illness needs to be planned for. Typically, this involves having adequate insurance in place, and maybe even a rainy day fund. A financial adviser can help in both there areas.
It’s also extremely beneficial to have a financial adviser in your corner when illness or injury strikes. Dealing with insurance companies and doctors can add stress and turmoil to an already stressful time. We can communicate with insurers to ensure all necessary documents have been collated and forwarded to the relevant claim’s teams. We know the processes and we can take on the administration burden so you can focus on you and your family.
9. Divorce
Divorce is a life-altering event that can bring financial complexities. They can provide clarity on how the division of property can affect your financial future, help you establish a new spending plan, and assist in creating a financial strategy that reflects your new circumstances.
For parents, this can be an especially stressful time, particularly if you were the main child carer in the relationship and therefore have had a reduced earning capacity since starting a family. Divorce can often happen at a time in life when it’s difficult to get back into the workforce or increase your hours due to your children’s age. For people in this situation, it’s pivotal to have a financial adviser on your side. We can make you aware of any benefits or entitlements you can access, and we can help you make informed financial decisions moving forward so you can live the life you want.
10. Marrying again
No matter how many times you get married, it’s always a special life event. Unfortunately, no matter how many times you get married, many still walk into it without laying all our cards on the table.
Second (or third, or fourth, fifth…) marriages can be more complex than the first, especially if you’re entering into a blended family situation. It can also be more complex because partners have greater personal assets and/or greater personal debt. Getting a financial adviser involved as soon as possible is the best way of uniting these financial portfolios in the most seamless and mutually beneficial manner.
Financial planning to help you navigate life’s events
There are many events in life that we look forward to (and some that we hope never to encounter). We don’t often think about the financial implications of these events or who to seek council from when they occur. A financial adviser can help you plan for these milestones, provide guidance on whether another professional needs to be engaged such as a solicitor or accountant and in some instances provide a direct referral, so that in the event your situation changes you know you’re not alone. So don’t hesitate to get in touch with the team at Pride Advice today.