Financial Planning FOR Life Transitions
As your life transitions between its stages, your priorities can change.
You may have fun new experiences such as a wedding or having a baby. You may also face disruptions which can bring up new emotions and make it hard to think clearly. When these transitions occur, you might be required to make life-altering decisions quickly. An objective source of advice can make all the difference. We are here to help!
Planning for a Baby
When expanding your family, it’s good to get prepared - from pregnancy or adoption to the early years of daycare and even later decisions such as schooling or insurance. One of the many benefits of having a baby may be the maternity or paternity leave you can take, giving you time to bond with your newborn. The downside is the lack of income coming in. Early on consider all the ways you may be able to make up for lost income such as short-term disability which often covers maternity leave. It’s also worthwhile to make a checklist of everything you’ll need to put in place for the baby. This might include:
Registering the birth and receiving the birth certificate
Applying for a social security number
Potentially applying for a passport too if you have travel planned
Adding to your health insurance
Enrolling in a Dependent FSA
Considering a college savings plan
It’s also important to ensure that your family will be cared for should the unexpected occur, so key decisions regarding their chosen guardians and your estate will need to be put into place.
Getting Married
There’s so much to plan when you’re getting married, and it can be a really exciting time! However, it’s not all about the food and guest list. It’s good to have clear and honest discussions with your partner about:
Finances: your debt or credit in particular
Planning a family
Planning a house purchase
Getting combined insurance
You might also need a financial planner to add each other to your future planning, whether this involves plans for retirement or a Will.
There are also the matters of adding your partner to your health insurance or car insurance. Most insurers have multi-car policies so you might find out this works out cheaper than your usual premium. Then, you can get around to the all-important honeymoon planning fun!
Divorce
A divorce can bring up all sorts of unexpected and unwanted emotions, but making financial decisions during this process requires a clear head. Alongside the possible costs of court and an attorney, you’ll have to think about the settlement of assets and potential taxes this might involve.
In some cases, a divorce might come as a bit of a shock and for many, working on protecting their assets is the priority. Costs to expect might involve alimony and child support if you share children.
Removing an ex from your estate or retirement planning should be on the list to handle post-divorce It can be essential in order to protect yourself later in life or your children or future spouse. Be sure to close any joint accounts and check your credit report to ensure no joint debts are affecting your credit.
If you’d like to talk to an objective source while going through a life transition, get in contact with me for a complimentary call.