What triggers people to seek financial advice?

Life is full of turning points—some we plan for and others that catch us by surprise.  

What if you are unable to work unexpectedly? What if a family member passes without a Will?  Will you have enough to retire?  

Whether it’s purchasing a property, navigating the complexities of an inheritance, or managing a life transition like retirement, these moments present challenges and opportunities to revisit your financial position and set a course for the future. 

Let’s explore some common trigger events and the opportunities where you can leverage these to your advantage by working with an advisor.  

Career transitions 

Whether you’re starting a new job, earning a promotion, or even being made redundant, career changes often require financial adjustments.  

For instance, some employers offer additional superannuation contributions, bonuses, or employee share schemes that can accelerate your wealth-building goals. Investing these extra resources wisely may even pave the way for an early retirement.  

On the other hand, redundancy or a sudden windfall can create uncertainty. Building a savings buffer to cover several months of expenses can provide peace-of-mind during transition periods.  

Buying or selling a home 

Purchasing or selling property is often one of the biggest financial decisions we’ll make. While most focus on securing the right mortgage or maximising sale proceeds, there are also some other considerations.  

How will purchasing a property impact my long-term financial flexibility? Tying up too much capital in a property could limit your ability to invest in other opportunities or have memorable holidays with your family, for instance.  

Other than interest rates, additional costs such as stamp duty, legal fees, insurance, and ongoing maintenance can quickly add up. When emergency funds are not enough, unexpected repairs can drain savings, leaving households financially vulnerable. It is important to include these factors in your plan to make an informed decision.  

Starting a family 

The arrival of a child is a joyful milestone, but it also brings new financial responsibilities - budgeting for childcare, education, and everyday expenses is essential. 

Education costs can be significant, particularly if you are considering private schools or university fees. There are some tax-friendly investments designed to assist with education planning that can help. 

It is also important to plan for unexpected events, such as something happening to you or your partner that can impact your ability to earn an income and provide for your family. Adequate insurance coverage can provide essential support to cover obligations like mortgage repayments, existing loans as well as ongoing financial needs required to maintain a comparable lifestyle for a partner and any children.  

Additionally, appointing a guardian for your minor children is also essential if you and your partner are not able to care for them. This ensures that your children have access to financial resources to assist them throughout their lives.  

Divorce or separation 

Navigating a divorce or a separation is an emotional period and dividing assets and reconfiguring your financial future after a separation can be overwhelming. A financial settlement today could significantly impact your superannuation and investment strategy for the future. 

In addition, it is important to secure your financial position as you move forward. Ensuring you have a clear understanding of your income and expenses is essential to rebuilding your financial stability.  

For instance, people often underestimate the financial impact of retaining the family home. While emotionally important, the associated costs may impact the ability to fund other priorities, such as lifestyle needs or retirement savings. 

Losing a loved one 

The passing of a family member is emotionally devastating. On top of that, financial implications can add even more stress to the family.  

An essential consideration is Estate Planning, which includes a Will and Power of Attorneys. If someone passes away without a Will, they die intestate, meaning that the laws of state or territory they live in determine how the estate is distributed. An application for a Grant of Letters of Administration may be needed which makes the process of distributing assets lengthy, costly, and contentious. This could result in strain on the family and delayed access to essential funds.  

Also, tax obligations can be quite complex, as superannuation, property, and joint assets have different tax treatments. For example, if a superannuation death benefit is paid to a non-dependent beneficiary, it may incur an additional tax of up to 17%.  

Transitioning into retirement 

As you transition into retirement and move from building wealth to managing how you spend it, you’ll experience a significant life shift that requires careful financial planning.  

The most common and important question people ask as they approach retirement is – “do I have enough to retire”? The answer depends on a range of factors, and while there’s no one-size-fits-all answer, understanding the key considerations such as life expectancy and your desired lifestyle can help determine whether your retirement savings and income will be sufficient to support the lifestyle you envisage. 

The second most common question revolves around the longevity of savings. Revisiting your investments and structuring your income in retirement are critical. For example, drawing from the right accounts in the right order can help reduce taxes and extend the life of your savings. Furthermore, assessing your eligibility for the Age Pension or other entitlements can provide valuable support. 

A partner in your journey 

Navigating life’s changes and planning for the future can be complex.  

At Partners Wealth Group, we provide the clarity and direction you need to manage life’s transitions and create a future you aspire to.  

Find out how we can support you and your family as you navigate life’s financial decisions.

Click here to get in touch

 

This information is general in nature and is provided by Partners Wealth Group. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.