10 Life-Changing Events Where an Investment Advisor Can Help

Life is full of milestones that involve making important financial decisions with short and long-term effects. While contacting an investment advisor might not be at the top of your to-do list, they can provide emotional support and objective guidance on how best to navigate the situation, adjust your financial plans, and make informed decisions that help protect your financial future. Here are 10 life-changing events where consulting with an investment advisor can help:

1. Career Changes
Large transitions like a career switch, a big promotion, or the loss of a job usually come with an increase or decrease in income that may change your financial picture.  This can impact your retirement plans, tax situation, and investment strategies.  For example, if you’re making significantly less money, you may choose to put less money into your 401(k) or, on the flip side, elect to invest more in your portfolio.

2. Marriage or Divorce
Whether you’re combining your finances or dividing your assets, there’s a lot to consider when it comes to securing your finances for the future.  Areas to think about include tax planning, estate planning, changes in insurance, and retirement accounts.

3. Family Planning
If you’re thinking about starting a family, you might want to consider implementing investment strategies to help with your long-term and short-term financial plans.  This includes starting and managing savings accounts, like a 529 plan, to help with future education costs.

4. Retirement Planning
No matter what age you choose to retire, you want to have a solid plan for how you’re going to live when you’re not earning wage income.  Investment advisors, like Armbruster Capital, can guide you on the best ways to save money, such as 401(k) plans or IRAs, and ways to maximize your contributions and benefits.  You want to have a personalized plan and investment strategy that aligns with your retirement goals, risk tolerance, and timeframe.

5. Starting or Selling a Business
It’s important to involve an investment advisor when you’re thinking about how to invest in or secure funding when launching a new business.  When it comes to selling a business, they can also advise on how to navigate any tax implications, transition planning, and making sure your investments continue to be secure.

6. Death of a Partner or Spouse
Losing a spouse is a difficult and emotional experience that often requires you to make quick financial decisions.  This is a pivotal time when an investment advisor can provide support and guidance.  This includes making sure you can access the money you need to cover both daily expenses and unexpected costs, such as funeral arrangements.  As a widow or widower, you will also need help navigating any inheritance or insurance benefits and adjusting your financial plans to line up with your new circumstances.

7. Financial Windfall or Inheritance
When navigating a financial windfall or inheritance from a loved one, there are financial decisions you need to make from the get-go.  Whether you decide to leave your job or save this money for your family’s future, you want to make sure your money is protected properly.  This includes seeking guidance on tax planning, investment strategies, risk management, and estate planning.

8. Estate Planning
What do you want to happen to your assets when you pass away?  Creating an estate plan will ensure that your money is given out according to your wishes and that your heirs are not faced with hefty estate taxes.  By having a plan in place, an advisor can make sure that your assets are protected for future generations and that any charitable contributions are fulfilled.

9. Charitable Giving
If you include charitable contributions or legacy gifts that are meaningful to you in your estate plan, investment advisors can help create giving strategies that maximize your donations and potential tax benefits from these gifts.  They can also help when it comes to making decisions about where your gifts can make the greatest impact and ensuring that your assets are distributed according to your wishes.  If you are more than 70 years old, an advisor can also help with any qualified charitable distributions (QCDs) from your IRA.

10. Major Illness or Debilitating Disease
If a partner, parent, or child is diagnosed with a debilitating disease, they may require costly medical care. Managing the financial impact of an illness or disability is a complicated and challenging process that requires planning and resources, or it can deplete your assets.  Having a financial plan in place that manages healthcare costs can help you pivot when you need to and make informed decisions for the future.

If you’re wondering if working with an investment advisor is the right fit for you, check out our article “Is working with an investment advisor worth it?” and contact us to schedule a meeting.  We would be happy to discuss your needs and help you plan.