How Major Life Events Impact Your Finances

Major life events like marriage, parenthood, and the loss of a loved one bring profound changes to your life, including your finances. Understanding the financial implications of these events is crucial for making wise financial decisions during these transitions.

Marriage

Marriage is a joyous occasion, but it also requires careful financial planning. Start by discussing your financial situation openly with your partner. Transparency about debts and financial goals is a great contributor to a healthy relationship. Understand each other's saving and spending habits to create a satisfying budget together.

Take the time to evaluate all your individual financial accounts and decide if joint accounts are right for you. Update any medical insurance and beneficiary information with your spouse's information.

Combining incomes and expenses can be challenging, but creating financial goals together can lead to rewarding adventures in your shared life

Parenthood

Welcoming a child is a beautiful experience, but it also comes with expenses. It’s important for new parents to prepare for expenses related to childbirth by planning and saving. Review your medical insurance to understand what it covers, including deductibles, and ensure your life insurance policy is up to date.

Additional expenses like baby gear, clothes, and toys should be prepared for in advance to ease the transition when you bring your child home. Plan for short-term expenses, especially if one parent is staying home. Some employers offer family leave policies or temporary disability benefits.

After your child is born, review your insurance coverage to add them to your plan and consider saving for long-term expenses like college. 

As your child grows, you may want to open a checking or savings account for them and work with them to start setting financial goals. 

Death

The loss of a loved one is emotionally challenging and financially impactful. Having a step-by-step process of what to do during this time can ease this burden.

Expect changes in income, especially if the deceased contributed to your household finances. It’s a good idea to identify and address their debts and financial obligations promptly. Review beneficiary designations on their insurance policies and financial assets to expedite benefit claims.

Consult an attorney if the deceased had a will or estate plan to navigate the legal aspects of settling their estate. Determine your eligibility for insurance and survivor benefits, which can provide crucial financial support.

Professional guidance from a financial advisor with expertise in the financial management of your loved one’s estate can be invaluable when experiencing a loss. It’s also important to seek emotional support during this challenging time and consider long-term financial planning, including your own estate plan.

Conclusion

Major life events bring both excitement and challenges. While the impact varies for everyone, consulting a financial advisor can make these transitions smoother. Each financial situation is unique, so discuss yours with a trusted advisor to find the best financial solutions for you. “We believe that a life well-planned leads to a life well lived,” says Bouquet Boulter, Vice President and Financial Planner at Southside Wealth Management, “This belief is what drives us to help you prepare for major financial milestones and each moment in between. We will work together to identify and prioritize your goals and create a plan to help you reach them. Let’s plan the future you’ve always wanted.” 

Planning ahead ensures you can navigate these life changes with confidence and security. Learn more about our trust services and how to contact a financial advisor at https://www.southside.com/wealth/trust-services/. 

We want you to know that investment products provided by Southside Wealth Management: Are Not Insured by the FDIC or Any Federal Government Agency | May Lose Value | Are Subject to Risk | Are Not Bank Guaranteed | Are Not Deposits. 

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc.. Southside Bank and Southside Bank Investment Services are not registered broker/dealers and are independent of Raymond James Financial Services.