Financial Stages of Life: 4 Key Questions to Ease Transitions
We all have the same anxiety: Will I be OK? Regularly adjusting your long-term financial plans can help calm your fears.


One thing I’ve learned in my 15 years in the investment industry that’s worth its weight in gold: Transitions are critical to the success of any well-thought-out financial plan. If the timing and execution don’t work, then even the best of plans (on paper!) could be critically altered — and you may be left reassessing your plan or reevaluating your goals.
In my years of onboarding new clients, I regularly heard questions like “Do I have enough?” and “Will I be OK once I stop working?” These fears should be easily quelled if you have a long-term plan in place that is regularly recalibrated based on the financial phase you’re in.
Traditional measurements use age to tell you where you are on your journey to retirement, but by seeing your life in “financial phases,” you can more clearly define and achieve your life goals. Once you understand which financial phase you are in, you can work to ensure a smooth transition between them. As you work through transitioning between each phase, here are four key questions to ask yourself:
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.
1. What does my current financial picture look like?
As you consider making any transition, it’s imperative to know where you’re coming from. A review of your finances, including your current spending patterns and financial commitments, is in order. Importantly, you should be clear about the priorities that typically, and most meaningfully, can impact your financial life in the phase that you’re looking to transition to.
Portfolios have had a roller coaster year, so if you work with an adviser, it’s important to touch base if you haven’t already to ensure you know if the markets have had any impact on your financial expectations. Or if it’s been a while since you’ve reviewed your spending habits, you can use budgeting apps like Mint to help you accurately reconnect with your spending in the last year or two.
What’s important is that you accurately know where you financially stand today and not where you stood the last time you reviewed your financial picture.
2. Do I still have the same goals?
Now is a good time to really evaluate the goals you originally set out to accomplish when you first created your plan. A lot of times, life happens, and things that seemed essential are no longer needed, or just aren’t a priority for you. Maybe you thought you would need to pay for a wedding in the future, but now you know your child is not getting married or is financially stable enough to pay for their own wedding. Or maybe you thought when you’d retire that you would stay in your home, but have realized that the maintenance on the home is too much, and you don’t want to carry that burden.
It’s OK. Life goals are supposed to shift, so now’s a good time to reassess and determine what your outlook looks like in the near future (and this can shift again down the road — it’s your life!).
When reassessing your goals, don’t be shy about having a fearless conversation with yourself about what’s really important to you, and regular journaling can help you find clarity. Of course, include your spouse or partner in these conversations as well and make sure you share any changes in your mindset with your children as well. Even with differing perspectives, having your loved ones on the same page is a crucial part of a smooth transition.
3. How much risk should I be taking?
Most of the time when you hear the word risk, you are thinking of investments and asset allocation, but risk goes beyond just your investments. Of course, ensuring that you are not taking any unnecessary risk for the goals you want to achieve (or not taking enough when your time horizon is long) is salient.
Some other things to think about include insurance coverage: Is it time to increase or decrease coverage on life, umbrella or medical insurance? Starting a family is often when people first look into life insurance, for good reason. Also, with increasing natural disasters, should you adjust your homeowners or renters insurance policy?
Life is inherently risky, and there is no magic answer to how much risk you should take on, as that is personal. What matters is that as you face the next chapter in your life, you reevaluate the types of risks you want to take. And maybe that involves skydiving — that’s up to you!
4. Has anything changed that will impact my planning for the future?
A lot of times people go through a life transition — getting married, buying their first home, becoming parents — and they make “plans.” Then the unanticipated happens, and they neglect to consider what no longer works in light of the changes taking place in their lives. Hopefully, those people important to you many years ago are still important to you now, but we get it: Relationships evolve.
Here’s one example: Who you appointed to execute your estate or care for your children or make medical decisions may change. It’s critical to review these decisions frequently, but for sure as you transition between the financial phases. Another key consideration to take up during any transition: In planning for retirement, you may have previously determined a specific age or asset amount as your end goal. Again, this may change. Your goals should be reviewed before every transition so you can adjust your planning as needed.
Another aspect that no one without a crystal ball can predict is your health. Surprising medical diagnoses can be an unfortunate part of our lives, so in addition to regular health checkups, pay attention to your own changing physical needs and keep that in mind as you look into your ideal future.
Transitions can be challenging for many reasons, many of which are emotional. But being pragmatic by anticipating and meeting these challenges head-on, you can ensure the next chapter of your life is a welcome change.
If you are approaching a big life and financial transition, whether that be retiring, building a family, receiving an inheritance or working through a tragic circumstance, by thoroughly answering the above questions, you can ensure the transition to your next phase is a successful one.
Talking to an adviser or other professional with specialized experience is a great first step if you are trying to figure out how to accomplish the goals you’ve set for yourself as you move through the different phases of life.
Halbert Hargrove Global Advisors, LLC (“HH”) is an SEC registered investment adviser located in Long Beach, California. Registration does not imply a certain level of skill or training. Additional information about HH, including our registration status, fees, and services can be found at www.halberthargrove.com. This blog is provided for informational purposes only and should not be construed as personalized investment advice. It should not be construed as a solicitation to offer personal securities transactions or provide personalized investment advice. The information provided does not constitute any legal, tax or accounting advice. We recommend that you seek the advice of a qualified attorney and accountant.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Kelli Kiemle holds multiple roles with Halbert Hargrove. As Managing Director of Growth and Client Experience, she sets the tone for the quality and character of Halbert Hargrove's client service relationships. She also manages the associate wealth advisers and client service managers. Kelli is also responsible for overseeing the firm's wide-ranging marketing and communications initiatives, including their mentor program.
-
It Could Soon Be Harder to Get a Refund on a Flight Gone Wrong
The Department of Transportation's deregulation efforts are taking aim at your rights to compensation for delays, canceled flights, lost baggage and more.
-
The Final Countdown for Retirees with Investment Income
Retirement Tax Don’t assume Social Security withholding is enough. Some retirement income may require a quarterly estimated tax payment by the September 15 deadline.
-
Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings, From a Financial Planner
Holding too much of one company's stock can put your financial future at risk. Here are four ways you can strategically unwind such positions without triggering a massive tax bill.
-
Beyond Banking: How Credit Unions Serve Their Communities
Credit unions differentiate themselves from traditional banks by operating as member-owned financial cooperatives focused on community support and service rather than shareholder profit.
-
Answers to Every Early Retiree's Questions This Year, From a Wealth Adviser
From how to retire in a crazy market to how much to withdraw and how to spend without feeling guilty, a financial pro shares the advice he's given this year.
-
The Risks of Forced DST-to-UPREIT Conversions, From a Real Estate Expert
Some new Delaware statutory trust offerings are forcing investors into 721 UPREIT conversions at the end of the hold period, raising concerns about loss of control, limited liquidity, opaque valuations and unexpected tax liabilities.
-
I'm a Financial Adviser: You've Built Your Wealth, Now Make Sure Your Family Keeps It
The Great Wealth Transfer is well underway, yet too many families aren't ready. Here's how to bridge the generation gap that could threaten your legacy.
-
Want to Advance on the Job? Showing Some Courtesy and Appreciation Could Help
Two business professors share their insights about the impact of digital communication on the social skills of some in Gen Z and the importance of good manners on the job.
-
From Job Loss to Free Agent: A Financial Professional's Transition Playbook (and Pep Talk)
The American workforce is in transition, and if you're among those affected, take heart. You have the skills, experience and smarts that companies need.
-
A Financial Planner's Top Five Items to Prioritize When Your Spouse Is Ill
During tough times, it's easy to overlook important financial details, but you'll be so much better off if you take care of these things right now.