Talk With Your Wealth Management Advisor When You Experience These Life Events

Posted on

While you should be in periodic communication with your wealth management advisor even when your financial situation remains the same, sudden changes to your finances should prompt you to contact your advisor. If you experience any of the following life events, talk with your advisor so you can make any changes to your investments that are appropriate.

Having a New Child 

Welcoming a new child into your family doesn't change your income, but your family's expenses will be impacted. You'll have slightly higher monthly expenses as you pay for their clothes, food, and other necessities. You'll also need to consider whether you want to help them pay for college in the future.

Depending on your current budget, you might need to decrease your investment contributions slightly in order to afford the additional monthly costs that accompany having a child. Should you need to do this, you'll have to let your advisor know about the changes.

Even if you don't need to adjust your investment contributions, however, you ought to still speak with your advisor about where those contributions are being directed. If you want to help pay for your youngest child's college in the future, your advisor will know how to best invest your financial resources to afford tuition when they're the right age.

Taking on a New Job With Benefits

Anytime you take on a new job that offers benefits, you should review the available investment benefits with your advisor. Your advisor can help evaluate the merits of any 401(k), 403(p) or other option that's available to you. If you receive profit sharing or stock options, your advisor will also know how to best take advantage of those.

Getting an Increase in Income

Whenever your income increases, whether by getting a new job or receiving a raise, consider putting some of that additional income into investments and savings. Your advisor can help you explore what different investment amounts could grow to be, so you can make an informed decision on just how much of the additional income you want to invest.

Receiving a Financial Windfall

In the event that you receive an inheritance, gift or other financial windfall, ask an investment advisor how you might use the money to grow even more wealth in the future. Sometimes your standard investment strategy isn't appropriate when getting a big one-time infusion of funds. Your advisor will know what to do based on your situation, goals, and income tax bracket.