Financial planning helps one map a financial future. When one has a financial plan, he can secure his wealth and finances. Even when one does not find the essence of creating a financial plan, these five life events demand one.
Marriage and Divorce
A couple should work together to build wealth, secure finances, and clear debts during a marriage. This, however, can be difficult to achieve. Therefore, a couple should seek advice from a professional financial planner. Building an empire during the marriage is difficult but attainable. Sadly, this can be easily wasted in case of a divorce when a spouse lacks a financial planner. A professional will assist divorcees in updating their will, protecting investment accounts, and changing insurance policies.
Welcoming a Baby
Adding a new baby to the family will result in lifestyle and financial changes. This is why financial planning is important. Before the baby’s arrival, one needs to create college funds, have insurance policies, and update their will. Besides, there will be a lot of unexpected expenses. Therefore, seeking help from a professional financial planner is recommended.
Most people overlook taxes when changing their jobs. But when working with a professional, they will work to minimize these taxes. They could use stock options or rollover existing retirement accounts to do so. Financial planners also help adjust financial plans after a job change and prepare one for continued growth in the future.
Buying, Selling, and Inheriting Property
Buying, selling, and inheriting property can be complicated. It is, therefore, important that one finds a financial planner during these times. When buying or selling a home, one needs a professional to help evaluate capital gains, maximize tax benefits, and handle taxes and exclusions. The professional will also take care of write-offs and deductions.
Inheriting property can also be troublesome when the inheritance is in the form of a lump sum amount or a retirement account. But with a professional financial planner, one is guaranteed that taxes will be minimized and all outstanding debts cleared. Besides, in an IRA account, the planner will help with rollover and investment advice.
When transitioning to retirement, one should ensure they have maximized their income sources. Before retirement, one should establish financial security for the long-term. For this reason, one requires a financial planner to help review the current financial position and ways to maximize it.
It can be difficult to make financial decisions in the above five life events. It is for this reason, financial planning is recommended. A professional financial planner will help with both short-term and long-term financial goals.