A financial plan isn’t something you create once and file away forever. It’s a living strategy that should adapt as your life changes. While regular check-ins with your advisor are important, certain life events call for an immediate review to ensure your plan still aligns with your goals and circumstances.
Here are five common changes that should prompt you to revisit your financial strategy.
1. Relocating to a New State or City
A move can affect far more than your address. Relocating often brings changes to your cost of living, tax obligations, and access to resources like healthcare. For retirees, it can also influence housing expenses, community engagement, and travel costs to visit family.
When you move, it’s worth evaluating how these factors impact your income plan, tax strategy, and overall budget. Even a small shift in property taxes or healthcare premiums can ripple through the rest of your plan.
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2. Marriage or Divorce
Changes in marital status can significantly affect your finances. Marriage may mean merging accounts, updating beneficiary designations, or rethinking your tax filing status. Divorce can require dividing assets, adjusting income expectations, and revising estate documents.
These changes often have both immediate and long-term impacts, so it’s best to review your plan as soon as possible to avoid gaps or oversights.
3. Receiving an Inheritance or Other Windfall
An inheritance, business sale, or large bonus can provide new opportunities and new complexities. Deciding how to invest, save, or spend a windfall requires careful thought to avoid unnecessary taxes or risk.
A financial review after receiving a large sum can help ensure the money supports your goals, whether that’s strengthening your retirement income, funding charitable giving, or creating a legacy plan.
4. Significant Health Changes
Your health plays a major role in your financial plan. A new diagnosis, surgery, or change in mobility can affect your expenses, insurance needs, and retirement timeline.
Healthcare planning is a key part of a holistic strategy, and significant changes should be factored in right away. This might involve reassessing insurance coverage, building up cash reserves for medical expenses, or adjusting your investment approach to provide more liquidity.
5. Changes in Your Work or Retirement Status
Shifting from full-time work to part-time, retiring earlier than expected, or returning to the workforce can all alter your income flow. These changes can also impact Social Security benefits, retirement account contributions, and your overall tax situation.
Whenever your work status changes, it’s important to revisit your plan to ensure your income and savings strategies still fit your new reality.
Why Timely Reviews Matter
Life changes often create a ripple effect across your entire financial picture. Adjusting your plan promptly helps you:
- Stay on track toward your goals.
- Avoid missed opportunities for tax savings.
- Ensure your investments match your updated risk tolerance.
- Keep your estate plan accurate and legally sound.
Taking the Next Step
If you’ve experienced one of these changes or any other major life event, now is the time to revisit your plan. Even small adjustments can have a big impact over the long term.
You can explore professional profiles online to learn more about advisors who can guide you through these transitions. For example, TruNorth Advisors maintains a LinkedIn presence where you can find updates, insights, and information about their approach to financial planning.
