As the old saying goes: “In this world, nothing can be said to be certain except death and taxes.” Benjamin Franklin quoted this in a letter he wrote to Jean-Baptiste Leroy in 1789. More than 235 years ago, old Ben was reflecting on the uncertainties of life, with these two inevitable certainties standing out as exceptions.

In modern times, we would add a third compelling certainty: “Life is characterized by change,” and given how fast things change in today’s environment, the pace of change is accelerating.   Life is full of transitions, and some of the biggest ones require an assessment of your financial circumstances. Whether you’re preparing for retirement, navigating the complexities of losing a spouse, or seeking a new financial advisor to help guide you, having a financial plan in place is invaluable. 

Suppose you have accumulated $1 million or more of investable assets. In that case, any type of life event or transition can be particularly complex, but with the right planning, they can also be an opportunity to realign your finances to fit the changes in your current reality.

As CFPs ® in St. Louis, we specialize in assisting high-net-worth individuals and families to create financial plans to withstand the impact of change – both the expected and the unexpected.  

In this blog article, we’ll examine some of these life changes and how a financial plan can help make possible a sustainable financial future for you and your family.  

Transitioning From a Career to Retirement 

For many, transitioning from a four-decade career to retirement is one of the most significant changes in their lives. After years of receiving paychecks every two weeks and accumulating assets for retirement, the next step is figuring out how to make that wealth last for the next 30 years for you and your spouse. 

It’s no longer just about adding to your investments each month; it’s about managing them in a way that produces a stream of income while minimizing reductions in the principal that produces the income.

A comprehensive financial plan can help determine how much you can safely withdraw from your portfolio each year, factoring in inflation, performance, emergencies, and other variables. You’ll need to assess how to manage assets through stock market cycles, inflation, recessions, rapidly rising healthcare costs, changes in tax regulations, and much more. When entering this new phase of life, having a financial advisor in St. Louis who understands your entire financial situation is critical for a comfortable financial future. 

An important part of this financial planning process is determining when to start taking distributions from the different income streams. From Social Security to pension distributions, or withdrawals from IRAs, a 401(k) plan, or taxable savings accounts, important decisions must be made that will directly impact the amount of money available during your latter retirement years. 

This is where a St. Louis financial advisor can play a critical role, helping you create a distribution strategy that accounts for taxes, longevity, and your specific lifestyle needs.

Watch: As a St. Louis financial advisor, we help you focus on what matters most.

Preparing for the Unexpected: Loss of a Spouse

Losing a spouse is one of the most challenging transitions anyone can face, and it can bring new financial challenges. This new phase can feel overwhelming if you’ve been managing your wealth as a team or even worse if you’ve been minimally involved!. Whether the deceased spouse was the primary breadwinner or handled the majority of the financial planning, there’s a need to develop a new plan based on new realities.

A comprehensive, prudent financial plan can ease this transition by outlining the next steps for managing the estate, reviewing tax liabilities, and making adjustments for changes in income.

For example, if you, as the surviving spouse, will receive survivor benefits, it’s essential to account for the potential reduction in Social Security or pension payments. Additionally, reassessing investment allocations and cash flow projections becomes necessary to place you in an excellent position to continue living the way you want.

If this is the case, you may need more hands-on guidance. Working with a St. Louis financial advisor specializing in estate and transition planning can be crucial to verify nothing is overlooked, whether updating beneficiaries or understanding any new tax rules that may apply.

Watch our newest video: “Five easy ways to increase your Social Security benefit.”

Reevaluating Your Financial Team

When managing multiple portfolios, in particular during life transitions like retirement or losing a spouse, it’s not uncommon to outgrow the knowledge and services of your current financial advisor. Perhaps you need a financial professional with the expertise and resources to help you make the right decisions during critical periods in your life.  

Like Ben Franklin’s quote, it pays to remember that the most expensive advice on the planet is bad financial advice—and there are no do-overs.

If this resonates with you, consider partnering with a financial planner in St. Louis, MO, better equipped to meet your escalating needs. 

The right fiduciary financial advisor can offer a more tailored approach, helping you navigate complex decisions, such as managing withdrawals tax-efficiently or updating your estate plan to reflect change in your current situation. 

Finding a fiduciary advisor who is legally obligated to act in your best interest can significantly improve your overall financial situation. The potential for any conflicts of interest is greatly reduced when your advisor is a financial fiduciary. Finding the right financial advisor can feel daunting, but the confidence you will gain from having performance accountability is worth the effort to find that right fit now.

Managing Wealth Through Market Fluctuations

Over the past few years, we have experienced persistent inflation, fluctuating interest rates, and frequent market volatility. Life events often coincide with the frequent ups and downs of the financial markets.  Whether navigating a bear market in retirement or managing your portfolio through periods of significant economic uncertainty the right financial advisor can make your financial decisions a lot easier. 

A sophisticated financial plan can protect you, help you manage risk, and keep you focused on long-term goals versus inevitable, short-term volatility.

For retirees or individuals approaching retirement, this can mean adopting a more conservative approach to investments while keeping enough growth-oriented assets to  offset the erosive impact of distributions and inflation. It may involve shifting part of your wealth into income-producing investments like bonds or dividend-paying stocks or precious metals while keeping a portion in equities to produce higher rates of return.

If you’re going through a personal transition, like losing a spouse, it may be time to revisit your portfolio allocation to better align it with your new financial situation. You’ll want to balance your need for current income with your need to protect the assets that will continue to produce income in the future.

Tax Implications of Transitions

Another critical aspect to consider during significant life transitions is how taxes impact your financial decisions. Retirement often brings new tax considerations, including required minimum distributions (RMDs) from certain accounts and the potential impact of Social Security income on your current and future tax brackets. 

The death of a spouse may also involve estate tax considerations, which could affect how much of your wealth is passed on to your heirs.

Take the Next Step

We understand that no two families have exactly the same financial journey, so we developed the Life & Wealth Planning approach.  It’s designed to help you build, implement, and maintain a financial plan that adapts to your constantly changing needs. 

By working with Trinity Wealth Advisors, you gain access to our team of CFP ® professionals who integrate financial planning with life planning, ensuring your strategy is not just about growing your wealth but also about supporting the life you want to live.
From investment management to estate planning, Trinity Wealth Advisors can guide you through every phase of your financial life, helping you stay on course no matter what transitions or challenges may come your way. Contact us to learn more about our financial planning services.