Why You Need an Evolving Financial Plan

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

Financial planning is not a set-it-and-forget-it activity. Rather, financial plans are ever-evolving based on your changing life circumstances. Your goals and priorities may shift as your career evolves and big changes like marriage, having a child, or getting a new job may warrant adjustments to your long-term plan.

Here is a look at the situations that may call for revisiting financial goals and steps to consider to adjust your long-term plan.

 

Changes in the family

Marriage, divorce, the birth of a child, or a death in the family are all major life events that have an impact on your finances. When any of these events occur, it can be helpful to sit down with a financial advisor to revisit your plan.

For example, marriage may mean you combine finances with your partner and start saving for retirement and other goals with a dual income. It may also mean that you are taking on your partner’s debt or other financial obligations, which could have a big impact on your ability to pursue your objectives.

If you get divorced, you may need to adjust your plans to reflect a single source of income and look for ways to make up for any savings as you and your ex separate assets.

After the birth of a child, consider starting a college savings plan that provides tax-advantaged growth to help you save for education expenses.

 

Changes at Work

A significant change to your income, whether from job loss, furlough, a big raise, or a move to a different career, should trigger a financial check-in. 

If you get a new job with a significant bump in pay, for example, you may be able to save more in retirement or taxable accounts. Or you can use the extra income to pay down debt. What’s more, your new employer may offer a different set of benefits, such as new retirement plan options, that can impact how you save.

Job loss may mean that you need to dip into your emergency fund while you get back on your feet. You’ll need to come up with a plan to replace the money. You also may need to reassess your spending and determine where to scale back to continue pursing your savings goals. For example, you may no longer be able to afford pricey gym memberships or frequent vacations.

A decrease in income—perhaps due to a move to part-time work—may require you to reimagine your retirement if you aren’t able to save as much as you once planned for. Find ways to trim retirement expenses, such as downsizing to a smaller home.

 

Shifting needs and goals

As you grow and change it’s natural to assume that your goals, needs, and priorities will as well.

For example, as you near retirement age, your financial needs may shift from accumulating wealth to protecting your assets. This likely means reallocating portions of your portfolio into more conservative investments, such as bonds, to help shield your portfolio from risk.

It’s possible you’ll also change your mind about certain goals over time. Maybe you were initially planning to move to a state with a lower cost of living when you retire, but now you have grandkids nearby you want to stay close to. This change of heart may mean reassessing your estimated expenses in retirement and adjusting your savings accordingly.

In addition to revisiting your financial plan during major life events, set up regular check-ins at least annually to keep up with your current goals. A financial advisor can help you take an in-depth look at your goals and finances and determine the steps you need to take to pursue your financial goals.

 

Information is provided by Theodore Swenson and written by Oechsli, a non-affiliate of Cetera Advisor Networks LLC.

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

What You Should Know About Advisor Fees

Financial advisors and planners help you manage your investments and work toward your financial goals, such as estate and retirement planning. In return for their knowledge and guidance, some advisors will charge a flat fee, while others work on commission. Some may even do both. But how ar …

Instilling Financial Values in Your Family

Over the next two decades, more than 84 trillion dollars will change hands in what has become known as the “great wealth transfer.” More than $72 trillion of that will pass from older generations to their heirs, while nearly $12 trillion will be donated to charities.[1]

Your Silicon Valley Bank Questions Answered

You likely have heard about the recent Silicon Valley Bank (SVB) collapse and probably have questions. Here, we provide you with unbiased answers to your questions.

Thinking About Retiring Early? 8 Things to Consider First

Tom Fridrich, JD, CLU, ChFC®, Senior Wealth Planner We’ve all asked ourselves whether it’s too early to retire (usually after a particularly challenging commute or dealing with a difficult client).  You may have even gone so far as to take a sneak peek at your account statements …

1 2 3 108 109 110

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation