Five life events that will change your financial plan.

It is often said that nothing is certain in life except death and taxes. We’d like to add ‘change’ to that list. Whatever happens in your life, it is sure to change over time, especially as you make choices that affect your financial future, causing a shift in your plans for how you are managing your wealth.

When it comes to key financial moves like saving or investing, a change in your life circumstances can have a major impact on your financial plan. While certain changes, such as a sudden death or illness, are unpredictable, there are other life events we can prepare ourselves for so that we are better equipped to deal with our new situation. Below, we’ve outlined five major life events that could alter your financial plans, meaning it might be time to review them with the help of a trusted financial adviser.

Life events that could alter your financial plans for good:

1. Buying a property. Renting is all good and well but the time will probably come when you want to buy your own home, add to your property portfolio or invest in a business premises. Any property you own needs to play a vital role in your investment and estate plan. Not only might you have increased bond payments to add to your budget, you will need to consider costs like insurance fees. You will also need to clearly title each property and review your beneficiaries in the case of your death.

2. Tying the knot. Getting married is a major life shift on many fronts. Financially, there are a number of implications and this is a good time to update and consolidate your financial plans so that you can prepare for the future as a couple. Consider how you will manage financial accounts, expenses and assets like property. And don’t forget to revise your estate and health care plans, as well as update your investment strategies to hit joint long-term goals.

3. Starting a business. Have you decided it’s time to go out on your own? Starting a new business can be an exciting but daunting prospect. To protect your financial future and get your new venture off the ground, you will need to review your investment and saving strategies to make sure you create the money you need to reach your goals. You will need to choose the appropriate business structure, account management system, and insurances, as well as consider an exit and succession plan.

4. Receiving a large windfall. Whether it’s an inheritance, winnings, or a pay-out, receiving a large amount of cash can be a welcome injection into your financial plan. It can also be too easily squandered. Consult a trusted financial adviser to ensure you understand the tax implications of your windfall and how you will handle it after that part has been settled. Will it be best used to settle debts, make a large purchase or to grow your investments?   

5. Time to retire. Leaving behind your work to enjoy your golden years can be an exciting but also stressful experience, especially as in today’s day and age, many people spend up to 30 years or more in retirement. While you’ve probably already started to plan for your retirement, you will need to take into account how best to shift your savings and investment plans to accommodate changes in your circumstances and risk tolerance, as well as health care and relocation costs.

Investing strategically is an important part of solid financial planning, whatever stage of life you’re in or changes you’re facing. Need help putting in place the best investment strategy for your needs? Talk to us. As independent advisers, we can help you make the most of your wealth journey.

Want to start investing in your financial future? Download our Investment Guide to learn more.