Life Transitions: Do You Need a Financial Advisor?

Five Instances Where Professional Guidance Can Make a Meaningful Difference

As you go through complicated life transitions, such as retirement, divorce, or the death of a spouse, having your support network around you is essential. A financial advisor can be a valuable resource to assist you during these times, offering professional insight and guiding you in your decision-making.

If you’re in the midst of an evolution or you’re approaching important life transitions, perhaps it’s time to consider working with a financial advisor. Making the wrong decision when it comes to your finances can cost you now and into the future. Below, you’ll find five examples of life transitions where a financial expert can help you make the right choices.

Going Through a Divorce

If you’re going through a divorce, it can throw nearly every aspect of your life into disarray, including your finances. Even divorces on the friendliest terms are complex matters to navigate, especially on your own.

Unlike second chances at romance, there are no second chances when it comes to divorce settlements. What is decided in the proceedings will be final. Along with an experienced lawyer, you will want a financial advisor by your side as you tackle this difficult life transition. The advisor will be able to offer practical guidance and ensure you aren’t overlooking assets from the marriage to which you may be entitled, such as your spouse’s retirement savings.

Managing an Influx of Money

Imagine receiving a large sum of money when you aren’t anticipating it. On the surface, it sounds wonderful! After all, who couldn’t use a bit more money? However, if you aren’t used to dealing with significant wealth, an inheritance or other windfall can also bring significant challenges. From understanding the tax implications to offering investment strategies, a financial advisor can help you learn how to manage your money to meet your goals and avoid common pitfalls, such as bankruptcy.

Preparing to Retire

Of all the life transitions we experience, this is the one you’ve probably thought the most about. You’ve likely spent your whole working life stashing away money to fund your golden years, so you’ll want to be sure you’re enjoying it but also spending it wisely. You may already know the exact date that you’re eligible for retirement, but the specifics surrounding your financial needs during this life transition are much less certain. Depending on when you stop working, you may need to plan for 25-30 years of retirement or more, and you’ll have plenty of things to take into consideration. By working with a financial advisor, you can create a plan that aligns with your retirement needs and goals, including when and how to withdraw from your accounts, manage RMDs, navigate taxes and more. You can’t predict the future, but a financial advisor can help you leave less to chance.

Losing Your Spouse

Along with managing the emotional and mental turmoil of losing your partner or spouse, you will also be faced with financial challenges connected to their passing. Money may be your last concern at such a difficult time. That’s why having a financial advisor to assist you is critical. As an expert in the financial aspects of even the most difficult life transitions, they can offer clear guidance, including when you’ll need to make certain decisions regarding your finances, how to complete paperwork, and more. If you already have a financial advisor who assisted with your spouse’s estate planning, they will be well-positioned to walk you through this process as you learn to manage your finances and future independently.

Investing for the Future

Since you know life transitions are apt to happen, keep your focus on your long-term financial goals when thinking about your investments. When you manage them on your own, it can be tempting to react to every dip in the market; this can often result in selling low in a bad market, meaning you lose money. To maximize your portfolio’s earning potential, you need to remain patient through the ups and downs, as this article from Forbes explains. A financial advisor can help you develop a portfolio that’s aligned with your risk tolerance and that is built for long-term profitability. You can continue to monitor the market and check in with your financial advisor when you have concerns about your investments, whether during life transitions or otherwise.

Do You Have a Trusted Financial Advisor for Life Transitions?

Just like the stock market, life is full of ups and downs. Some of these life transitions are more traumatic than others, and some carry more financial consequences, too. When you’re in the middle of dealing with them, it can seem nearly impossible to prevent your emotions from taking over. A financial advisor can offer clarity and much-needed expertise to ensure you’re still focused on the future, even if that future looks different than you imagined.

At Arbor Capital, we see our clients as individuals, each with their own life circumstances and financial goals. Our team of experts has experience navigating challenging life transitions alongside clients, meeting them where they are and helping to alleviate the financial hurdles they face. If you are going through a complicated life transition and need a trusted financial advisor, reach out to us today to begin the conversation. 

There is no time like the present

Let’s connect over a cup of coffee – or if you prefer, we can meet virtually. We meet you where you are.

mountain-top-woman

Join Our Mailing List

Did you know we work with many of our clients completely virtually?

Whether you’re in Fort Lauderdale or Fairbanks – or anywhere in between – we’re happy to serve you outside of the traditional brick-and-mortar advisory relationship. Our clients can opt for virtual or in-person meetings as their needs require.