ST. CROIX INSIGHTS

Planning for Major Life Events: Including Stuff We Don’t Want to Talk or Think About

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC
last will and testament and a watch and pen

Life isn’t always gumdrops and lollipops. At times, we can experience different seasons in our life that are extremely difficult. A premature death of a spouse or child, divorce, or a serious illness can all put your life and financial well-being on a completely different track. Yet at other times, we are flying high where nothing can stop us.

Truly, the best time to plan in our lives is when life is going well. You are feeling invincible. It’s making sure your values and finances are in line with the life you want to live.

Why Consider a Financial Advisor?

During our lifespan, we have a host of major life transitions we will face. Having an impactful conversation with a Certified Financial Planner (CFP®) can be an invaluable partnership when you least expect it to be. Here’s why:

  • Expert Guidance: Financial advisors bring expertise and experience that can help you navigate complex financial decisions during challenging times.
  • Personalized Plans: They create tailored financial plans that align with your goals and circumstances.
  • Emotional Support: An advisor can provide objective advice and support when emotions run high, and you doubt you’ll never die or could ever become sick.
  • Time-Saving: They handle the intricate details of financial management, saving you time and stress.

Major Life Events That Benefit from Planning with a Financial Advisor

Here are some major life events where a financial advisor’s guidance can make a significant difference:

  • Marriage: Determining if combining finances makes the most sense, setting joint financial goals, and planning for future expenses.
  • Birth of a Child: Planning for educational costs, adjusting budgets, and securing life insurance if necessary.
  • Buying a Home: Navigating mortgages, budgeting for homeownership, and understanding the financial implications.
  • Career Changes: Managing income fluctuations, planning for retirement, and optimizing benefits.
  • Divorce: Dividing assets, planning for financial independence, and understanding tax implications.
  • Serious Illness: Managing medical expenses, planning for long-term care, and protecting your family’s financial future.
  • Retirement: Ensuring a steady income stream, managing investments, and planning for healthcare costs.
  • Death of a Loved One: Handling estate planning, managing inheritance, and providing for dependents.

Financial Products for Major Life Event Planning

When planning for major life events, various financial products can be instrumental in ensuring stability and achieving your goals. Here’s a closer look at some of the key financial tools that can aid in this process:

Insurance Products

  • Life Insurance: Provides financial security for your loved ones in the event of your premature death. It can cover final expenses, pay off debts, and replace lost income.
  • Health Insurance: Covers medical expenses and helps protect against high healthcare costs, especially important during serious illness.
  • Disability Insurance: Replaces a portion of your income if you become unable to work due to illness or injury.
  • Long-Term Care Insurance: Helps cover the costs of long-term care services, such as nursing homes or in-home care, which can be essential during aging or illness.
  • Property and Casualty, Umbrella, Liability Insurance: Offers protection for your physical assets and provides coverage for liability claims.

Investment Products

  • 401(k) and IRA Accounts: Retirement savings accounts that offer tax advantages, helping you save and grow your money for retirement.
  • Brokerage Accounts: Allow you to invest in stocks, bonds, mutual funds, and other securities to grow your wealth over time.
  • 529 Plans: Tax-advantaged savings plans designed to help pay for education expenses; beneficial when planning for a child’s future.

Savings and Budgeting Tools

  • Emergency Fund: A savings account specifically set aside for unexpected expenses, providing a financial cushion during emergencies.
  • High-Yield Savings Accounts: Offer higher interest rates than regular savings accounts, helping your savings grow more efficiently.
  • Budgeting Apps and Software: Tools like YNAB (You Need A Budget), set financial goals, and manage your finances effectively.

Debt Management Tools

  • Debt Consolidation Loans: Combine multiple debts into a single loan with a lower interest rate, making it easier to manage repayments.
  • Credit Counseling Services: Provide advice and assistance in managing debt and improving your credit score.

Estate Planning Tools

  • Wills and Trusts: Legal documents that outline how your assets should be distributed after your death, helping to protect your family’s financial future.
  • Power of Attorney: Grants someone the authority to make financial decisions on your behalf if you become incapacitated.
  • Healthcare Directive: A legal document that specifies your preferences for medical treatment and end-of-life care.

Tax-Advantaged Accounts

  • Health Savings Accounts (HSAs): Allow you to save for medical expenses with pre-tax dollars, providing tax benefits and potential investment growth.
  • Flexible Spending Accounts (FSAs): Let you set aside pre-tax dollars for eligible healthcare or dependent care expenses, reducing your taxable income.

Annuities

  • Fixed Annuities: Provide guaranteed income for a specified period or for life, which can be a reliable source of income during retirement.
  • Variable Annuities: Allow investment in various portfolios, offering the potential for higher returns along with a death benefit.

Each of these financial products serves a specific purpose in helping you navigate major life events. Not all products are necessary for all individuals or families. By working with a financial advisor, we can help you select the right mix of products tailored to your unique needs and circumstances, ensuring that you’re well-prepared for whatever life throws your way.

How We Can Help

We’re here to help you achieve the financial security and peace of mind you deserve.

We offer different financial services that can be tailored to how involved or distant you want to be in this process, but just know that we are here to help. If you are a good fit for us and we are a good fit for you, we will make the details work.

Our services include:

We are always open to having a conversation. You can give us a call at 651-337-1919 or complete this contact form. Let’s see if this would be a good opportunity for both parties.

With the right guidance, you can navigate life’s challenges and still achieve the life you want. Don’t hesitate to reach out and start the conversation today.

 

Life isn’t always gumdrops and lollipops. At times, we can experience different seasons in our life that are extremely difficult. A premature death of a spouse or child, divorce, or a serious illness can all put your life and financial well-being on a completely different track. Yet at other times, we are flying high where nothing can stop us.

Truly, the best time to plan in our lives is when life is going well. You are feeling invincible. It’s making sure your values and finances are in line with the life you want to live.

Why Consider a Financial Advisor?

During our lifespan, we have a host of major life transitions we will face. Having an impactful conversation with a Certified Financial Planner (CFP®) can be an invaluable partnership when you least expect it to be. Here’s why:

  • Expert Guidance: Financial advisors bring expertise and experience that can help you navigate complex financial decisions during challenging times.
  • Personalized Plans: They create tailored financial plans that align with your goals and circumstances.
  • Emotional Support: An advisor can provide objective advice and support when emotions run high, and you doubt you’ll never die or could ever become sick.
  • Time-Saving: They handle the intricate details of financial management, saving you time and stress.

Major Life Events That Benefit from Planning with a Financial Advisor

Here are some major life events where a financial advisor’s guidance can make a significant difference:

  • Marriage: Determining if combining finances makes the most sense, setting joint financial goals, and planning for future expenses.
  • Birth of a Child: Planning for educational costs, adjusting budgets, and securing life insurance if necessary.
  • Buying a Home: Navigating mortgages, budgeting for homeownership, and understanding the financial implications.
  • Career Changes: Managing income fluctuations, planning for retirement, and optimizing benefits.
  • Divorce: Dividing assets, planning for financial independence, and understanding tax implications.
  • Serious Illness: Managing medical expenses, planning for long-term care, and protecting your family’s financial future.
  • Retirement: Ensuring a steady income stream, managing investments, and planning for healthcare costs.
  • Death of a Loved One: Handling estate planning, managing inheritance, and providing for dependents.

Financial Products for Major Life Event Planning

When planning for major life events, various financial products can be instrumental in ensuring stability and achieving your goals. Here’s a closer look at some of the key financial tools that can aid in this process:

Insurance Products

  • Life Insurance: Provides financial security for your loved ones in the event of your premature death. It can cover final expenses, pay off debts, and replace lost income.
  • Health Insurance: Covers medical expenses and helps protect against high healthcare costs, especially important during serious illness.
  • Disability Insurance: Replaces a portion of your income if you become unable to work due to illness or injury.
  • Long-Term Care Insurance: Helps cover the costs of long-term care services, such as nursing homes or in-home care, which can be essential during aging or illness.
  • Property and Casualty, Umbrella, Liability Insurance: Offers protection for your physical assets and provides coverage for liability claims.

Investment Products

  • 401(k) and IRA Accounts: Retirement savings accounts that offer tax advantages, helping you save and grow your money for retirement.
  • Brokerage Accounts: Allow you to invest in stocks, bonds, mutual funds, and other securities to grow your wealth over time.
  • 529 Plans: Tax-advantaged savings plans designed to help pay for education expenses; beneficial when planning for a child’s future.

Savings and Budgeting Tools

  • Emergency Fund: A savings account specifically set aside for unexpected expenses, providing a financial cushion during emergencies.
  • High-Yield Savings Accounts: Offer higher interest rates than regular savings accounts, helping your savings grow more efficiently.
  • Budgeting Apps and Software: Tools like YNAB (You Need A Budget), set financial goals, and manage your finances effectively.

Debt Management Tools

  • Debt Consolidation Loans: Combine multiple debts into a single loan with a lower interest rate, making it easier to manage repayments.
  • Credit Counseling Services: Provide advice and assistance in managing debt and improving your credit score.

Estate Planning Tools

  • Wills and Trusts: Legal documents that outline how your assets should be distributed after your death, helping to protect your family’s financial future.
  • Power of Attorney: Grants someone the authority to make financial decisions on your behalf if you become incapacitated.
  • Healthcare Directive: A legal document that specifies your preferences for medical treatment and end-of-life care.

Tax-Advantaged Accounts

  • Health Savings Accounts (HSAs): Allow you to save for medical expenses with pre-tax dollars, providing tax benefits and potential investment growth.
  • Flexible Spending Accounts (FSAs): Let you set aside pre-tax dollars for eligible healthcare or dependent care expenses, reducing your taxable income.

Annuities

  • Fixed Annuities: Provide guaranteed income for a specified period or for life, which can be a reliable source of income during retirement.
  • Variable Annuities: Allow investment in various portfolios, offering the potential for higher returns along with a death benefit.

Each of these financial products serves a specific purpose in helping you navigate major life events. Not all products are necessary for all individuals or families. By working with a financial advisor, we can help you select the right mix of products tailored to your unique needs and circumstances, ensuring that you’re well-prepared for whatever life throws your way.

How We Can Help

We’re here to help you achieve the financial security and peace of mind you deserve.

We offer different financial services that can be tailored to how involved or distant you want to be in this process, but just know that we are here to help. If you are a good fit for us and we are a good fit for you, we will make the details work.

Our services include:

We are always open to having a conversation. You can give us a call at 651-337-1919 or complete this contact form. Let’s see if this would be a good opportunity for both parties.

With the right guidance, you can navigate life’s challenges and still achieve the life you want. Don’t hesitate to reach out and start the conversation today.