Life’s biggest moments, the ones that shape who we are, often have a profound impact on our financial picture. Whether it’s a joyful new beginning like a marriage or a challenging transition like the loss of a partner, these milestones require more than just emotional strength. They require a fresh look at your financial plan to ensure it’s still aligned with your new reality and goals.
While every life event is unique, the steps to adapt your wealth plan can be distilled into three essential actions.
- Communication: The Foundation of Change
A major life event is a signal to open a dialogue. This is the time to have an honest conversation with your friends, your loved ones, and your financial advisor about how your circumstances have changed. Effective communication ensures everyone is aligned, allowing your financial plan to serve as a shared roadmap for the future. Here are some tips to consider:
- Align on a Shared Vision: Following a marriage or new partnership, sit down with your spouse to discuss and agree upon long-term financial goals, such as retirement age, family security, and legacy plans.
- Establish a Decision-Making Process: Agree on a system for how you will make financial decisions together, whether it’s for a major investment or a large purchase.
- Discuss Difficult Topics: Proactively talk about sensitive subjects like end-of-life wishes, estate planning, and potential inheritances to ensure all parties are clear on future plans.
- Consolidation: Re-Evaluating What You Have
After a marriage, divorce, or inheritance, your assets, accounts, and beneficiaries may no longer be aligned. This is the moment to consolidate and reorganize by incorporating the following:
- Review Account Titling: Ensure all bank accounts, investment portfolios, and property titles are correctly structured for your new reality, whether it’s in a joint name, a trust, or an individual account.
- Update Beneficiaries: This is a simple but critical step often overlooked. Confirm that the beneficiaries on all life insurance policies, retirement accounts, and trusts reflect your current wishes.
- Assess Insurance Coverage: A new home, child, or even a career change may require a review of your life, disability, and property insurance to protect from unexpected risks.
- Clarification: Defining What Comes Next
With your assets and communication in order, the final step is to clarify your new financial priorities. A life transition can alter your risk tolerance, timeline, and cash flow. Take steps that include:
- Rebalancing Your Portfolio: Evaluate whether your investment portfolio’s risk level still aligns with your goals. A new life event may prompt a shift toward a more conservative or aggressive strategy.
- Optimizing for Tax Efficiency: Work with your advisor to identify any new tax opportunities or liabilities that have arisen from the change, such as a different income structure, inheritance, or capital gains.
- Planning for Cash Flow: Understand how the life change impacts your daily and monthly cash flow. Adjust budgeting, savings, and withdrawal strategies accordingly to help maintain your lifestyle and security.
is Your Financial Plan Designed to Support Your Success?
The goal of any financial plan is to create peace of mind. But how do you know if your plan is designed to consider these latest life changes? Take this brief quiz to assess your financial situation and see if your plan is aligned with your life today.
Quiz
- Have you experienced a significant life event in the last 12-18 months (e.g., marriage, divorce, a new job, having a child, inheritance)?
- Do your current savings and investment strategies still align with your long-term goals and risk tolerance?
- When was the last time you reviewed the beneficiaries on your financial accounts and estate documents?
- Are you confident that your current plan accounts for unexpected changes and protects your family’s future?
If your answers to these questions feel uncertain—or if you’re navigating a major life transition—it may be the right time to speak with a financial advisor. Together, we can review whether your wealth management plan is structured to support life’s most important milestones.
Connect with the Measured Wealth team today.