The partnership with a Financial Planner can go a long way in order to keep things on track, make you feel more at ease and give an opinion that is more objective on your progress to the goals that you’ve set.Our recent post Why You Should Partner With a Financial Planner (Even if You’re a Pro) covered some of these topics in more depth. During this partnership there should be periodic collaboration to spot check where things stand and make sure everything is on track while resolving any questions or concerns. However,sometimes there are instances that should have you pick up the phone and set up an appointment sooner than later that we will cover here.

1: You’ve changed jobs or lost employment

Job changes happen, more frequently now than they ever did in the past and these transitions are an important checkpoint for you and your financial planner to discuss. The reason this is so important is because it will allow you to evaluate if your old retirement savings plan from the employer you’ve just left is best suited staying where it is and also to update the information in your planning documents to reflect the new employer plan,their match and other considerations. This will also allow you to see what your new plan may add or take from the previous planning that you’ve done (for instance company match may be higher/lower, profit sharing may be included or excluded,and stock plans may be part of one plan while not the other). Also, don’t forget that small differences make a big impact over time in your savings as we previously mentioned in 5 Simple Things You Can do to Save More so take the time to look at the numbers. If you’ve lost your job, your financial planner can help get a plan together in order to bridge the gap until you regain employment and they can run the numbers to see what it will take to get your savings back on track following that event.

2: Marriage or Divorce

Changes in your dynamics at home via Marriage or Divorce both play a role in numerous parts of your financial planning. From what investment account types, you are potentially eligible or phased out from to changes in your tax bracket, reporting status, and social security planning. Outside of how these change the numbers dynamics it most often also changes the goals that you may have as well and therefore all your planning should be updated to reflect these changes. Finally, these life events are important times to educate any and all parties involved in the planning process. All too often there is a single party ownership in the planning process, and this can leave questions, concerns, needs or goals unaccounted for and therefore we always look to take a collaborative approach with all parties involved,

3: Raises or Bonuses at Work

Much like the previous considerations with changing jobs or loosing employment you want to account for the changes in income via raises or bonuses. These can as mentioned make a difference in your tax situation,eligible accounts for saving and impacts to the goals that you have set for yourself. In addition to these, it has been proven that additional income can simply raise spending for most individuals leaving even a small incremental change in savings lost to the new spending habits. This does not mean at all that 100% of your newfound income will go to savings at all, we certainly want to balance out the ability to have some additional financial freedom with prudent planning and savings.

4: You’ve Received an Inheritance

Inheritances come with many considerations during an already trying time. Its important to know how this newly found money is going to impact your personal situation, your planning and your obligations. For instance, as it currently stands there is a required minimum distribution for non-spousal retirement money that is inherited and therefore this should be planned for so that it is not missed and there is an action plan of where it is going to go. Another example is the state to state treatments of inheritance dependent on if they are lineal (parents to kids to grand-kids etc) or if they are distributed to siblings or non-relatives. A good retirement plan can help absolve some of this for you as the beneficiary but it is always important to see at the point in time where things stand as well as make any updates to your legacy planning if need be at this time as well.

5: You’ve Changed Your Time Horizon

We all have best laid plans, but life happens over time and your goals or time frames for those goals may need to be adjusted as a result of these things. If ever there is the thought, desire or need to look at a change in your time horizon it is the time to strike up a conversation with your Financial Planner in order to lay out the steps to successfully make it work.You may have life events that make you move the time frame forward or backward dependent on the circumstances and both present different considerations along the way.

6: You Have an Unusual Tax Circumstance

From large purchases to large sales, inheritance or other circumstances you may have a situation that changes your tax reporting for any given year. This can be an important time to discuss these changes for the year so that along with your financial planner any moves in non-retirement accounts are appropriately considered for their tax impact. It may also open considerations and/or conversations for charitable giving or other tax write-off steps that maybe available within your investment accounts. Finally, this presents an opportunity for your financial planner and tax professional to join to plan for the current considerations that need to be taken.

Howto Get Started:

It never too early or too late to get started! If you are interested in speaking with a Financial Planner here at Coastal Wealth Planners you may choose from the following:

Complete Our New Client Questionnaire

Set Up a 30 MinuteIntroductory Phone Appointment

 Register for Our ClientPlanning Portal

You can always reach us byphone as well at (732)554-1099 or [email protected] .

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