Five Life Events That Require Financial Planning

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Last Updated on July 30, 2021

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Most things in life, no matter how simple they seem, require financial planning, significantly if they interfere with funds allocated for different life events. From having children, relocating to another state, or a retirement savings plan, everything requires financial planning to ensure that your life remains balanced to retirement.

They may require additional insurance coverage, a new budget, or advice from an economic consultant.

Here are five life events that might stimulate you to do some monetary analysis:

Weddings

Weddings can sometimes be as expensive as buying a condo, especially when the couple wants a grand affair and wants to accommodate all their family members, friends, and then some. Many couples have chosen to marry later in life for this very reason. However, joining resources may become even more complicated when you get married later in life. 

Others may have been married before or had children and want to protect their money as they move into another relationship. Hence the need for prenuptial. These kinds of arrangements may often take the fun out of marriage, but they do serve a great purpose in protecting your assets and preventing any misconceptions. Prenuptials are particularly valuable if either partner is carrying monetary obligations such as children into the marriage.

Buying a New Home 

Buying a home is one of, if not the most significant, investments you’ll ever make during your lifetime. It’s therefore crucial that you do it right and not have your hard-earned money go down the drain. It’s especially vital to do your research if the home you’re relocating to is outside the state in which you live.

The reason that research is essential is that all fifty states have different local and municipal statutes. Therefore, you may come upon higher or lower tax rates and the cost of living as a whole. Relocating to another state also comes with a wide array of expenses related to the moving aspect. 

Even if you’re moving locally, it can be tedious, depending on the commute to your job, amenities, and places that are important to you. It certainly wouldn’t hurt to contact a financial planner, especially one with offices in your present community and your intended new region. 

A New Bundle of Joy

Babies can bring so much joy to you, your family, and your friends. However, what is intended to be a lifetime of bliss can turn into a nightmare if not adequately planned out. Buying cute clothes and decorating a room is only the beginning, but what about daycare, then private school(if that’s your desire), then tertiary education? 

When a child is born, life becomes unavoidably more complex. Fitting in some economic planning and purchasing all the cute things you’d like to see the baby in is essential. For instance, you might wish to start saving for college by opening an education account and purchasing extra life insurance coverage.

Your Retirement

It would be sad if, at the time your retirement comes, you are living worse off than in your young days. Retirement is when you want to breathe and do all the other things on your bucket list that you may have missed out on accomplishing.

Retirement is widely regarded as the most critical financial milestone in an individual’s life. Now is the moment to engage with a financial adviser to lay out your plans and budget if you haven’t done so yet. Financial planners advise clients between ages 20 and 30 to begin planning for this crucial life shift now while still making a lot of money, such as a retirement savings plan. It’s also an excellent time to consider your goals for the last part of your life.

My Life, I Guess

My Life, I Guess is a personal finance and career blog by Amanda Kay, an Employment Specialist and older millennial from Ontario, Canada that strives to keep the "person" in personal finance by writing about money, mistakes, and making a living. She focuses on what it’s like being in debt, living paycheck to paycheck, and surviving unemployment while also offering advice and support for others in similar situations - including a FREE library of career & job search resources.


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