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Call a Financial Advisor When You Experience These Key Milestones

The value of a financial advisor to help you handle your everyday money concerns and plan for your future cannot be understated. But at the same time, there are milestone life events that can dramatically alter your financial situation, or at the very least, cause you to rethink your current strategy. Financial advisors have the experience to walk you through these milestones and help you make the best decisions. So what are some of these events that can make or break your financial life?

You or Your Child Graduate College

You may think you don’t have enough money to work with an advisor when you graduate, but this is a crucial first step to getting your financial life on the right track. A financial advisor can steer you in the right direction and advise you on how to allocate your income from your new career. Now is the time to work on repaying student debt, creating a retirement plan, managing living expenses, and purchasing a life insurance policy.

If your children are at the point of graduating college, you should reevaluate your savings strategy and reallocate the money you were previously contributing to college savings accounts. Now that your children have completed their education, you can amp up your retirement savings or turn your attention to other investments.

You Get Married or Divorced

Joining your life with someone else is a major undertaking. From planning the wedding to merging your possessions, it can be easy to ignore the financial side at first. But it’s critical for you and your new spouse to meet with a financial advisor to do things like update beneficiaries in your will, insurance policies, and investment accounts.

You’d be surprised by how much can change once you get married, especially when it comes to your finances. In fact, money is the leading cause of stress in marriages because emotions can run high, and people can have differing opinions on money. This is why you may want to seek guidance from a financial advisor who can serve as an objective partner. An advisor can help you stay focused on the right goals, articulate your financial targets and needs, and create a strategy that incorporates both of your values and objectives.

On the same token, a divorce can cause a significant uproar in your financial world. An advisor can help you avoid making emotional decisions and minimize your losses.

You Had a Baby

Welcoming a baby into your life is one of the most exciting, life-changing, and overwhelming events of one’s life. The arrival of a baby also means changes in your finances. From the hospital bills to education, a child can cost half a million dollars, when all is said and done!

A financial advisor can review your insurance coverage to ensure it is adequate for your growing family. You will also need to add your new child as a beneficiary and update any paperwork pertaining to your will and insurance policies.

While they are still little, start talking with an advisor about your college savings options. A college education in the U.S. can cost upwards of $334,000, so it’s a good idea to start saving for your child’s education as early as possible. Take advantage of time to reap the benefits of compound interest. You have options when it comes to college savings, such as a 529 plan or an education savings account. An advisor can help you choose what is best for you.

You Make Property Changes

A change in your property situation can affect your finances considerably. It’s a good idea to work with an advisor when selling or buying so you can properly deal with issues such as capital gains taxes, write-offs, and use of savings or investments to purchase property.

You Receive an Inheritance

Regardless of how much you receive as an inheritance, an incoming lump sum can cause financial headaches. You will need an advisor to aid you with tax repercussions and help you make decisions about the type of accounts you have inherited, such as IRAs or 401(k)s. An advisor can work with you to figure out the best way to handle the money, where to invest it, what debts to pay off, or what to spend it on. You will also need to update your will to reflect the changes in your financial situation.

You Are Nearing Retirement Age

No matter what the state of your retirement savings are at this point, this is when you need to get serious about meeting with a financial advisor to hash out the nitty gritty details of Social Security, withdrawal rates, Medicare, and more. Retirement is complicated, so don’t try to handle the intricacies alone.

A financial advisor has expertise and experience with each of these milestones and their financial repercussions. Take advantage of this so that these milestones only enhance your life instead of derail it. At Key Wealth Partners, we want to partner with you through life’s changes and set up for success regardless of what happens. If you have experienced one of these milestones or have one coming up in the near future, contact us today at (717) 283-4186 or email me at dniggel@keywealthpartners.com.

About David

David Niggel, CFP®, ChFC®, AIF® is the founder and president of Key Wealth Partners, LLC, an independent wealth management firm serving individuals, families, and business owners. Along with over a decade of financial services experience, he has advanced knowledge and training in providing holistic financial planning with fiduciary and ethical care, holding the CERTIFIED FINANCIAL PLANNER™, Chartered Financial Consultant®, and Accredited Investment Fiduciary® certifications. With hands-on entrepreneurial experience, he has the unique ability to help clients meet both their individual and business goals. Based in Lancaster, he serves clients through the York, Harrisburg, Hershey, and Central, Pennsylvania areas. Learn more by visiting www.keywealthpartners.com or connecting with David on LinkedIn.