Hopefully, your financial adviser regularly reaches out to you via emails, videos, articles or phone calls when they have important information to share with you. But when should you contact your adviser?
There are many life events that could prompt you to consult them, and I thought we would cover some of the more common reasons for you to reach out.
1. Change in Job Status.
If you change jobs, there are several reasons to consult your adviser. Deciding if you should roll over your retirement plan is tops among them. You might also need to review your new company’s benefits package, including insurance (health/life/disability), 401(k) plan, tax withholding, etc.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The new job could also entail more or less expenses related to commuting, mileage, etc., which could all affect your financial plan. Losing a job requires planning for health insurance, cash flow, etc.
2. Kids Preparing to Go to College.
Ideally, two years before your kids go to college, you should run a mock FAFSA to get an idea of where you stand regarding financial aid. Since the FAFSA now looks at your tax return from two years prior, you might want to do some proactive planning to potentially reduce your expected family contribution (EFC), which could help lower the out-of-pocket cost of college.
3. Change in Marital Status.
A marriage or divorce can obviously have a dramatic effect on your financial plan. Alimony, child support, pension or retirement plan divisions can all add up to a major change in your future circumstances.
A marriage, especially a second marriage, requires additional planning, particularly if assets are intended to stay with each of your respective families.
4. Death or Care of a Parent.
Estate planning for your aging parents can mean the difference between preserving an inheritance or potentially costing you money. Sadly, I’ve seen many children of aging parents have to postpone their own retirement due to the costs associated with helping parents. Proper planning could help mitigate these costs.
5. Planning to Retire.
While the prospect of retirement is certainly appealing, there are many decisions that need to be made in preparation for retirement itself.
Health insurance, Social Security claiming, pension options and retirement plan distributions are all things to be considered before you stop working.
6. Birth of a Child.
A new baby brings lots of joy but also a lot of required time, and sometimes planning is the last thing on your mind. Things to consider are 529 college savings plans and reviewing your life insurance and your overall estate plan. Important decisions need to be made, such as who would have guardianship of your child if something happened to you.
7. Change in Your Health.
A change in health status can require your financial plan to need revisions. Revised life expectancy assumptions or increases in expenses tend to be the most common changes.
8. Major Purchase.
Ideally, you should contact your adviser before making a major purchase. Advisers could help decide the most tax-efficient assets to use or if financing is appropriate. Also, what are the effects of this new purchase on the viability of your plan?
Great communication between clients and advisers is crucial for the quality of both the relationship and the accuracy of the plan itself.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Reich Asset Management, LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax adviser with regard to your individual situation. To view form CRS visit https://bit.ly/KF-Disclosures.
-
Holidays Are a Rich Time to Talk Money With Young Adults: A Financial Adviser's Guide for ParentsThe most productive family financial conversations start with open-ended questions and a lot of listening. Don't let this opportunity pass you by.
-
How Women of Wealth Are Creating a New Model of Giving Through Family OfficesWomen who are inheriting wealth today are shifting from traditional philanthropy to creating sustainable systems to fund philanthropic gifts into perpetuity.
-
I'm a Financial Planner: This Retirement GPS Helps With Navigating Your Drawdown PhaseReady to retire? Here's how to swap your 'peak earnings' mindset for a 'preserve-plus-grow' approach instead of relying on the old, risky 4% rule.
-
Donating Stock Instead of Cash Is the 2-for-1 Deal You'll Love at Tax TimeGiving appreciated stock or using a donor-advised fund (DAF) this year would be smarter than writing a check to support your favorite causes. Here's why.
-
Traveling With Purpose: What Zambia and Zimbabwe Taught Us About Slowing DownDon't treat retirement trips like they're an exercise in ticking off boxes. Slowing down and letting adventure unfold can create more meaningful memories.
-
Investment Expert: Is Your Retirement Portfolio Too Late to the Profit Party?If you're following the usual retirement investment model, you could be missing out on a potential profit period that companies see in the run-up to their IPOs.
-
Losing Your Job? A Financial Planner's 6 Steps to Survive and ThriveWhether pink slips are just rumors at your company or layoffs have already landed, there are things you can do today to make the best of a tough situation.
-
Oil Prices vs Investor Returns: It's What's Beneath the Surface That CountsEngineering, geology and operating discipline can determine the success of oil and gas projects as much as the cost per barrel.
