Photo by: Iqbal Osman licensed under Creative Commons Attribution 2.0 Generic
We all know about the big life events that might trigger a change in your financial plan – a new job, an inheritance, retirement, marriage or divorce, sale of a business, the birth of a child. But there are a host of other, less earth-shattering circumstances that might signal a financial change to come. It could be related to your career or your personal life – either way, here are a few “other” signs that could mean your financial plan needs a shakeup.
The kids have finally moved out…
FINALLY, the kids have moved out and it’s time to sell off the nest. While this is likely good news for your cash flow, there are a lot of things that could impact your financial plan. Should you consider buying or renting once you’ve sold? Will you need some of the $$$ to supplement your retirement income? Is it time to consider buying a vacation property? Whatever your choices, selling your house will affect your financial plan in some way.
Your son wants a loan to go to clown school…
Okay, maybe not clown school – but perhaps your child is an exceptionally gifted writer or artist and you want to help him or her out financially while they get started. Or you want to help them buy their first house, or finance part of an MBA. Helping your kids in these ways could impact your financial plan. It’s worth a discussion, no matter how large or small the amount. There are lots of different ways to give money to your kids – whether it’s a loan, a gift, or an early inheritance – good planning can help you (and them) make the most of it.
Your boss is driving you nuts…
Or you are gradually losing interest in your job or chosen field. That’s a sign you might need a job or career change – or early retirement. Going over your financial plan sooner rather than later can help identify what’s possible now or may be in the near future by dedicating some new resources. Retraining, or even early retirement, may give you your quality of life back. Life is short – this could be your time to start writing your next chapter.
Your pay structure could be changing…
Are you about to get a raise or new benefits? Does your boss want to bonus out a bigger portion of your salary? Does a bigger bonus make sense or should you take the salary? Or should you quit and hire yourself out as an independent contractor? Anything that impacts your tax bracket or the type of income you earn, or the types of deductions you qualify for, could impact your financial plan – even in a small way. If you’re not sure, this could be the time to revisit your financial plan.
