top of page

17 Life Events where you need Financial Planning!

Updated: May 6



1. Marriage

Combining finances involves understanding each other’s financial habits, merging accounts, and aligning goals. Financial advice helps navigate joint accounts, investments, protecting each other with insurances and planning for shared aspirations.

2. Job Promotion

A promotion often means increased income but requires a reevaluation of how to allocate the extra surplus income to avoid lifestyle creep. It could also lead to changes in your taxation situation which need to be planned for.

3. Having Children

Expanding the family means reassessing budgets, planning for childcare costs, and securing their future through education funds and insurance. Financial advice aids in managing these added expenses and potentially managing on a single income.

4. Managing on a Single Income

Transitioning to a single income, whether by choice or necessity, demands a revised budget and possibly reevaluating investment strategies. Financial advice helps maintain financial stability.

5. Inheritance

Receiving an inheritance brings both opportunities and complexities. Financial advice helps manage taxes, aligning the inheritance with long-term financial goals, and making prudent investment decisions.

6. Home Renovations

Planning and budgeting for renovations involves financial considerations. Advice helps estimate costs, assess impact on home value (and whether there is a risk of overcapitalising), and strategize financing within the overall financial plan.

7. Funding School

Saving for education involves understanding various savings and investment plans and estimating future costs. Financial advice assists in choosing the right plan and balancing these expenses with other financial goals.

8. Buying the Forever Family Home

Purchasing a long-term residence necessitates careful financial planning to manage mortgage payments, insurance, and maintenance costs within the overall financial framework. It is also prudent to seek advice to ensure you are not overspending and putting other goals at risk.

9. Illness

Health issues can bring unexpected expenses. Financial advice helps manage medical costs, navigate insurance coverage, and mitigate potential income disruptions due to health-related concerns.

10. Redundancy

Sudden job loss requires a reassessment of finances. Financial advice assists in managing severance pay, unemployment benefits, and adjusting financial plans to adapt to the new situation.

11. Divorce

Divorce involves complex financial decisions. Advice aids in asset division, understanding legal implications, adjusting budgets, and creating a new financial plan post-divorce.

12. Starting a New Business

Entrepreneurship demands thorough financial planning, from initial capital requirements to ongoing operational costs, cash flow management, and retirement planning for self-employed individuals. A skilled financial planner can help with your business plan and risk mitigation.

13. Retiring

Retirement planning involves careful consideration of income sources, budgeting, tax strategies, and ensuring sustainable financial security throughout retirement years. Advisers can greatly assist in optimising clients superannuation accounts and maximising any Age Pension entitlements.

14. Having Grandchildren

When grandkids arrive, financial advice involves estate planning, and potentially setting up trusts, gifting strategies, and ensuring a legacy for future generations while maintaining financial security.

15. Completing Bucket List Items

Budgeting for and realising lifelong dreams or bucket list goals requires financial planning to keep people accountable for reaching their goals whilst also not being too ambitious that their financial security is impacted.

16. Considering Aged Care

Preparing for aged care involves understanding potential costs, assessing available options, and ensuring financial plans accommodate potential healthcare needs in later stages of life. Advisers can help with considerations such as whether to sell the family home and whether to pay the Refundable Accommodation Deposit or Daily Accommodation Payment and their affects on Centrelink entitlements.

17. Legacy Wishes

Advising on legacy planning involves estate planning, charitable giving, and ensuring that one's assets and wishes are appropriately distributed among heirs or causes close to the heart. Advisers can help ensure both personal assets and super are passed down in the most tax effective manner possible.

Each of these life events introduces financial complexities that, without proper guidance, can lead to unnecessary stress or missed opportunities. Seeking professional financial advice ensures individuals can navigate these milestones confidently, optimising their financial strategies for the best possible outcomes!



47 views0 comments

Comments


bottom of page