An Evolving Financial Plan: A Must for Your Future

Financial planning is not a static process, but rather a dynamic one that continually adapts to your evolving life circumstances. As your career progresses and significant life changes like marriage, the birth of a child, or a new job come into play, it becomes essential to make adjustments to your long-term financial strategy.

Here’s a closer look at situations that might necessitate a reevaluation of your financial objectives and the actions to consider when modifying your long-term plan:

Family Changes:

Major life events such as marriage, divorce, the arrival of a child, or the loss of a family member all have financial implications. When any of these events occur, it’s prudent to consult a financial advisor and review your financial plan.

  • In the case of marriage, you may need to merge finances with your partner and begin saving for joint goals, including retirement, while also considering shared debts and financial responsibilities.
  • A divorce may require you to adjust your financial plans to account for a single income source and explore ways to replenish any savings lost during the division of assets.
  • Welcoming a child might prompt you to initiate a college savings plan that offers tax advantages, helping you prepare for educational expenses.

Work-Related Changes:

Significant alterations in your income, such as job loss, a substantial raise, or a career change, should trigger a financial reassessment.

  • A higher-paying job can enable increased savings for retirement or debt reduction, potentially with new employer-offered benefits.
  • Job loss may necessitate tapping into your emergency fund, followed by a plan to replace the funds. You may need to reevaluate your spending habits and identify areas for cost-cutting to continue meeting your savings goals.
  • A reduction in income due to, for example, a transition to part-time work, might require a reimagining of your retirement plans, potentially involving downsizing your living situation.

Changing Goals and Priorities:

As you evolve and mature, it’s natural for your financial goals, needs, and priorities to evolve alongside you.

  • Approaching retirement age may shift your financial focus from wealth accumulation to asset protection, leading to adjustments in your investment portfolio toward more conservative options like bonds.
  • Over time, you might reconsider certain objectives. For instance, your initial plan to move to a more affordable state in retirement could change if you now wish to stay close to your grandchildren. This shift may entail a reevaluation of your estimated retirement expenses and a corresponding adjustment to your savings strategy.

In addition to revisiting your financial plan during significant life events, it’s advisable to schedule regular annual check-ins to stay aligned with your current objectives. A financial advisor can provide valuable assistance in conducting a thorough review of your goals and financial situation, guiding you on the necessary steps to reach your financial aspirations.

Investment advice offered through OneAscent Financial Services, LLC, d/b/a Provident Oak Financial, LLC, a Registered Investment Adviser with the United States Securities and Exchange Commission. Registration as an investment adviser does not imply any certain degree of skill or training.