Significant life events necessitate a strategic pivot in wealth management, and to guide you through this complex terrain, we’ve gathered insights from top financial experts, including CPAs and CEOs. From avoiding impulse decisions to opening dedicated savings for future education costs, explore the diverse strategies outlined in these nine expert responses to managing your wealth through life’s milestones.

  • Avoid Impulse Decisions; Seek Financial Advice
  • Strategically Adjust to Life’s Financial Shifts
  • Implement Protective Financial Measures for Life Events
  • Reevaluate Wealth Strategy After Family Growth
  • Adapt Insurance Plans for Health Changes
  • Proactive Financial Planning for Homeownership
  • Employ Life-Event Check-Ins with Advisor
  • Swiftly Revise Estate Plans for Tax Changes
  • Open Dedicated Savings for Future Education Costs

Avoid Impulse Decisions; Seek Financial Advice

The best strategy is to not act out of impulse. When we go through major life events, it’s easy to panic and make rash decisions without fully considering the long-term consequences. However, your finances and wealth management strategy should not be based on short-term emotions. Instead, it’s important to take a step back, analyze the situation, and make informed decisions that align with your long-term goals.

If you can’t handle the stresses of managing your finances during a significant life event, I highly recommend seeking the advice of a financial advisor. They can provide an objective perspective and help you make decisions that are in your best interest. It’s much better to seek professional guidance than to make costly mistakes that can have a lasting impact on your financial future.

One specific example of this is during a divorce. This can be an emotionally overwhelming time, and it’s easy to make impulsive financial decisions. However, it’s important to approach the situation with a clear head and consider the long-term implications of each decision. For example, selling off assets quickly to gain immediate cash may seem like a good idea at the moment, but it can greatly impact your overall wealth and financial stability in the long run. A financial advisor can help you navigate through this difficult time and make decisions that align with your goals and values.

Another example is the birth of a child. This is a major life event that can greatly impact your financial situation. Don’t let the excitement of a new addition to your family cloud your judgment when it comes to financial planning. Don’t just buy anything and everything for your new baby without considering the long-term financial implications. It’s important to create a solid financial plan that takes into account the added expenses of raising a child and saving for their future.

Sherman StandberrySherman Standberry
CPA and Managing Partner, My CPA Coach

Strategically Adjust to Life’s Financial Shifts

Adapting wealth management strategies during significant life events is a cornerstone of effective financial planning, and I’ve encountered numerous instances where swift and strategic adjustments were imperative. From my vast experience in financial planning and tax strategy, I recall a situation where a client was suddenly faced with early retirement due to health issues. This life event necessitated a complete overhaul of his financial plan.

We immediately shifted from accumulation strategies to focusing on preserving the client’s wealth and generating income to sustain his early retirement. We utilized a combination of annuities, structured withdrawals from his investment accounts, and optimizing his Social Security benefits to create a stable income stream.

In another example, a client unexpectedly inherited a substantial estate from a relative. This windfall presented both opportunities and challenges, especially around tax implications and the alignment with her long-term financial goals.

We decided to employ a multifaceted approach that included revising her investment strategy to incorporate the new assets, setting up charitable donations to minimize tax liabilities, and reallocating some of the inheritance into a trust for estate planning purposes. This not only ensured that her portfolio was diversified but also that it remained aligned with her risk tolerance and financial objectives.

Handling significant life events requires a balance between immediate needs and long-term goals. For instance, when working with a family transitioning wealth to the next generation, we focused on both minimizing estate taxes and ensuring that the wealth transfer aligned with the family’s values and legacy wishes. By employing strategic gifting, the establishment of family trusts, and thorough communication among family members, we crafted a plan that addressed tax efficiency while honoring the family’s legacy.

These experiences underline the importance of flexibility, strategic planning, and the ability to navigate complex financial and emotional landscapes. Adapting wealth management strategies during significant life events isn’t just about numbers; it’s about ensuring financial security and peace of mind through life’s inevitable twists and turns.

David Blain, CFADavid Blain, CFA
Chief Executive Officer, BlueSky Wealth Advisors

Implement Protective Financial Measures for Life Events

In my role at Silver Fox Secure, tailoring financial management strategies during significant life events has been a cornerstone of our mission. We’ve seen how events such as retirement or the onset of a physical disability can drastically alter one’s financial landscape, especially among the seniors and mentally or physically disadvantaged individuals we serve.

For instance, we assisted a retired veteran who became a victim of identity theft, which severely threatened his financial stability. By implementing immediate identity theft protection measures and monitoring his financial transactions, we not only secured his assets but also provided him with a framework for stronger personal financial management moving forward.

The key to adjusting wealth management strategies during life events is proactive and comprehensive protection. For another case, we worked with a senior who was transitioning to a fixed income post-retirement. We focused on establishing a credit monitoring system that flagged potential fraud early and advised on financial moves that minimized risk, such as consolidating accounts and setting up alerts for unusual activities. This approach not only safeguarded her assets during a vulnerable transition period but also educated her on maintaining financial vigilance independently.

My experience emphasizes the importance of adaptable and protective measures tailored to the individual’s changing circumstances. A specific example can be drawn from a situation where we integrated advanced credit monitoring solutions for a family member of an active military personnel. Knowing the financial risks associated with deployment, our goal was to ensure their financial well-being was not compromised in their absence.

Despite the physical distance, our technology-enabled solutions offered them peace of mind, showcasing how adaptive measures can protect against potential financial vulnerabilities triggered by life’s significant events. This strategy of implementing personalized and technology-driven solutions underlines our commitment to preventing financial exploitation across vulnerable populations.

Jenna TriggJenna Trigg
Co-Founder, Silver Fox Secure

Reevaluate Wealth Strategy After Family Growth

Life is full of unexpected events, and as we journey through it, we often encounter significant milestones that require us to adjust our plans. One area that these life events can greatly impact is our wealth management strategy. A specific example of this would be the birth of a child. The arrival of a new family member brings about a significant change in financial responsibilities. As parents, we now have to consider the cost of raising a child, including education, healthcare, and other expenses that come with parenthood. In such a situation, it is crucial to adjust our wealth management strategy accordingly.

For instance, one may need to increase savings and investments to ensure their child’s future needs are met. Similarly, it may be necessary to reevaluate existing assets, such as insurance policies and retirement plans, to ensure they provide adequate coverage for the new addition to the family. Moreover, life events like this also call for adjustments in budgeting and spending habits. With a child in the picture, there may be additional expenses that need to be factored in when creating a monthly budget. It is essential to prioritize and make necessary cuts to accommodate these changes without compromising long-term financial goals.

Ryan NelsonRyan Nelson
Founder, RentalRealEstate

Adapt Insurance Plans for Health Changes

In the realm of adjusting wealth management strategies during significant life events, my experience at Prestizia Insurance has provided me with unique insights. A compelling case from our portfolio involved a client who faced an unexpected major health event. This significant life event not only shifted their immediate financial needs but also their long-term financial planning and insurance requirements. From my background in offering personalized insurance solutions, we re-evaluated our client’s coverage, emphasizing the importance of having flexible health and life insurance plans that could be adapted to changing circumstances.

For instance, we transitioned the client to a comprehensive health insurance plan that better accommodated their increased medical needs and ensured that their life insurance policy was sufficient to cover any new debts incurred due to medical expenses, alongside providing for their family’s future. This adjustment was essential in aligning with their altered financial landscape and provided them not only with financial security but also peace of mind during a challenging period.

Moreover, another example involves a client who experienced a drastic change in their business operations. The unforeseen event necessitated a reevaluation of their business insurance and interruption insurance coverage. By closely analyzing their current and potential future business needs, we adjusted their policy to safeguard against unexpected financial strain and ensure business continuity. Through these experiences, I’ve learned the critical nature of regularly reviewing and, when necessary, adjusting insurance and financial plans to respond effectively to life’s unpredictable moments. This approach ensures that one’s financial well-being and business operations are protected, regardless of what life throws their way.

John CristJohn Crist
Managing Director, Prestizia Insurance

Proactive Financial Planning for Homeownership

Major life events definitely call for adjustments in wealth management strategies. For example, when my partner and I were planning to buy our first house, we knew it would be a significant financial commitment. We started by reassessing our financial plan to include potential unexpected expenses, like home repairs or medical emergencies.

We increased our emergency fund to cover at least six months of living expenses and adjusted our monthly budget to accommodate mortgage payments and home maintenance costs. This proactive approach helped us smoothly transition into homeownership without financial strain, proving how crucial it is to adapt your financial strategy to life’s major milestones.

Danilo MirandaDanilo Miranda
Managing Director, Presenteverso

Employ Life-Event Check-Ins with Advisor

I adopted a Life-Event Check-In system into the existing wealth management strategy. I meet my financial advisor on a regular basis to reassess my financial objectives and reestablish them as necessary based on the revised investment portfolio.

After my family suffered an unplanned onset of illness that was accompanied by unforeseen health costs, we began to feel the financial tension and pressure. I made an appointment with my financial advisor right away so that we could assess our financial condition and revise our wealth management plan.

As a team, we went through different ideas like redirecting investments, setting new priorities for savings, and even revising our usual budget to meet the new needs. We did so with open communication and collaborative decision-making, which resulted in a revised financial plan that gave us peace of mind in the end and, in the long run, helped our finances to stabilize. Working around significant life circumstances by proactively updating our wealth management plan enabled us to handle difficulties skillfully and stay strong financially.

Dennis SandersDennis Sanders
Founder, Burning Daily

Swiftly Revise Estate Plans for Tax Changes

In my practice as a Tax and Trust and Estate lawyer, I’ve witnessed how crucial it is to adapt wealth management strategies to major life events. For instance, when California introduced Proposition 19, it greatly affected the estate planning strategies for many of my clients. Proposition 19 changed the rules for the Parent-Child Exclusion for property tax reassessment, requiring swift adjustments to estate plans to mitigate potential increased costs for inherited properties. We had to promptly act to reassess and adjust our clients’ estate planning documents and tactics to lock in beneficial tax positions before Proposition 19 took effect.

In another example, my work with the complexities of tax law and estate planning allowed me to support a client through the process of financing their child’s education. When the client received a significant promotion, we utilized this as an opportunity to revamp their estate plan. This included setting up an educational trust, which not only provided for their child’s education in a tax-efficient manner but also ensured that the funds were protected and used as intended. This approach not only met the client’s immediate goal of funding their child’s education but also aligned with their broader wealth management and estate planning objectives.

Handling complex commercial litigation has also sharpened my skills in risk assessment and management, which are crucial when adjusting wealth management strategies during significant life events. For example, during a high-stakes dispute involving unique assets in a family-owned business, I used my expertise to advise on protecting the business’s value for future generations. This involved strategic legal structuring to insulate the business from the litigation’s potential fallout, ensuring that the client’s wealth management goals remained intact despite the ongoing legal challenges. Through these experiences, my approach has always been to offer proactive, strategic advice tailored to each client’s unique situation, ensuring their wealth management strategies are resilient and adaptable through life’s changes.

David BrillantDavid Brillant
Founder, Brillant Law Firm

Open Dedicated Savings for Future Education Costs

Significant life events require thoughtful adjustments in wealth management. Personally, I’ve found having dedicated savings accounts for major events to be a game-changer. For instance, when my partner and I decided we wanted to start a family, we opened a specific account for future education expenses. We set up automatic monthly contributions to this account.

By doing so, we’ve been consistently building a fund that will help cover educational costs when the time comes. This approach not only ensures disciplined saving but also reduces financial stress, knowing we’re proactively preparing for one of life’s biggest milestones.

James McNallyJames McNally
Managing Director, SDVH [Self Drive Vehicle Hire]