6 Reasons to Update Your Financial Strategy Now

Update your strategy when you have a major life change to improve your success in achieving your financial goals.

You have worked with a financial planner to create a plan to help you achieve your long-term financial goals. But since then you may have experienced recent changes. We all have a lot of changes that occur in our lives but there are certain life changes that affect us financially as well. To be successful in achieving your financial goals, you need to update your financial plan when you have a major life change.

6 major life stages when you need to update your financial strategy:  

  1. Marriage

Now that you are sharing your lives and financial responsibilities, you need to update your financial plan. For various reasons, we sometimes have the tendency to not want to talk with our significant other about financial matters. It is important that you both have an understanding of the family finances and be able to set goals as a couple. Either of you should be able to step in and be knowledgeable about everything from the monthly budget to insurance and investments.

  1. Divorce

Divorce can be a difficult time not only emotionally but also when it comes to finances. Whether you are trying to maintain your financial situation or getting back on your feet, there are some key areas of your financial plan that need updating:

  • Know where you stand financially
  • Create a budget
  • Review credit reports
  • Your emergency fund
  • Your estate plan
  1. Children

Adding children to your family is exciting. Whether you’re expecting, thinking about adoption or building a blended family, you need to plan for the added expenses. According to the U.S. Department of Agriculture, 2017, the typical middle income, married-couple parents of a child born in 2015 may expect to spend $233,610 ($284,570 if projected inflation costs are factored in*) for food, shelter, and other necessities to raise a child through age 17. This does not include the cost of a college education.

You may now need to revise your budget to accommodate expenses such as childcare or to allow one parent to stay home. You also need to review your insurance policies and estate plan to make sure your family is protected. You may also want to reallocate resources to start funding for college.

  1. Career or Job Change

Whether you have experienced the loss of a job or are considering accepting a new job offer, it is a good time to talk with your financial planner about your key financial concerns.

Losing a job can be stressful but doesn’t have to be financially devastating. Whether you were unemployed due to termination, merger or layoff, the key financial concerns may include loss of income, medical and other benefits.

You may be currently employed but considering a career or job change. You want to consider how this new job will affect your current retirement plan or whether or not the benefit package is sufficient to meet your family’s needs.

  1. Retirement

Retirement can be one of the most rewarding stages of your life. Unfortunately, if you don t plan properly you can run the risk of not living the retirement you envisioned. This is a good time to meet with a financial planner to update the answer key questions such as: How much have I saved? and How long will my money last?

  1. Death of a spouse

Dealing with the death of a spouse can be overwhelming both emotionally and financially. You will need to compile a list of tasks and issues that will need to be addressed. Your financial planner along with your estate planning attorney can help you though this process. 

A financial plan is not a static document…..

It should be reviewed and updated on an annual basis and/or as your goals change. It is also important that you revisit and update your plan when your have major life changes. If you have had a major life change recently, now is a good time to schedule a meeting with your Certified Financial Planner™ professional.


About Pamela Plick

Pamela Plick is a CERTIFIED FINANCIAL PLANNER™ practitioner and Registered Investment Advisor located in Palm Desert, California specializing in planning for women. Her goal is to empower, educate and engage women around their money. You can find out more about Pamela and connect with her on twitter, Facebook or linked in by going to www.pamelaplick.com.
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