Navigating Life’s Transitions: How Timely Financial Advice Can Assist

Life is full of twists and turns, and it is often when encountering a significant life event that timely financial advice can provide the greatest benefit to your financial well-being.

Whether starting a family, experiencing a separation, receiving an inheritance, preparing for retirement, selling a significant asset, or considering a move to residential aged care, seeking professional financial advice can make a world of difference in helping you to navigate these transitions with confidence and security.

In this article, we will explore how financial advice can assist through different life events and empower you to make informed decisions.

STARTING A FAMILY

Starting a family can be a time of immense joy, but it also brings with it new financial responsibilities. Timely financial advice can help to set up a young family to financially thrive by establishing structure around cash flow and budgeting, managing debt, establishing adequate and cost-effective insurance cover, and developing a comprehensive financial plan to assist with longer-term financial goals like buying a home, saving to meet education expenses, and broader wealth accumulation.

SEPARATION

Separating from a partner can be an emotionally challenging event, and it can also have significant financial implications. Timely financial advice can help to provide context and understanding of your financial position, to start to set goals for the future, and to establish your financial independence. Following the division of assets, financial advice can assist in accessing relevant social security supports and developing a budget to manage debt and investments. Establishing an appropriate structure to accumulate wealth, and reconfiguring insurances and estate planning arrangements are other important components in creating a financial roadmap for the future. Gaining a better understanding of relevant legislation as part of this process can assist to empower you to make independent financial decisions.

INHERITANCE

Receiving an inheritance can result in exciting and overwhelming change. Timely financial advice can provide guidance on managing a sudden influx of wealth. By assessing impacts to cash flow, taxation, debt, and social security entitlements a comprehensive plan can be developed to extract financial efficiency and to meet often vastly changed priorities related to lifestyle and personal goals. Ensuring appropriate estate planning provisions are established, including consideration to establish a legacy for future generations, is often an important objective of such advice processes.

INSURANCE CLAIMS, INJURY, AND ILLNESS

Suffering a significant injury or illness can be a life-altering event. A financial adviser can assist by corresponding with an insurer and advocating for a client through a claim process.

Once a claim is admitted, understanding often complex legislation and the broader financial implications of receiving (and on some occasions, choosing between) lump sum or ongoing benefit payments are vital in establishing a secure financial structure. It is important to comprehend the interaction between different legislation to make the best of these decisions.

It remains fundamental that available funds are best invested in productive assets, while mitigating exposure to various types of risk. To establish a structure of finances to provide reliable ongoing support it is important to also balance tax efficiency, with potential eligibility for government benefits, and the generation of adequate cash flow to meet expenses.

SALE OF A BUSINESS OR SIGNIFICANT ASSET

The sale of a business or other significant asset is a major milestone that requires careful consideration and strategic planning. Financial advice can provide invaluable insight to assist in evaluating the implications of the sale, including tax considerations, and potential investment opportunities for the proceeds. With the application of knowledge and experience, a comprehensive financial strategy is developed to achieve maximum benefit. Such advice processes often include collaboration with other professionals, such as accountants and solicitors, to ensure a seamless and successful transaction. Financial advice can assist to navigate the complexities of selling a business or other significant asset with confidence and to maximise financial outcomes.

RETIREMENT PLANNING

Planning for retirement requires careful consideration and expert advice. By evaluating the broad range of available investment structures and products, and ever changing and increasingly complex legislation, financial advice can assist to establish a cohesive investment strategy to grow and to make the most of your retirement savings. Strategies can also be developed to maximise pension payments and concessions, to assist in maintaining a sustainable income throughout retirement.

SALE OF THE FAMILY HOME AND DOWNSIZING

Downsizing can be a beneficial strategic financial decision for various reasons, such as reducing expenses and accessing additional funds. Financial advice can provide insight on the financial implications of downsizing a home, including tax considerations, developing an investment strategy for the proceeds, and assessing impacts to pension payments and concessions. Financial advice provided in such processes can also assist to develop a revised budget and to adjust long-term financial plans.

RESIDENTIAL AGED CARE

The prospect of a move into residential aged care can be complex and daunting for the person entering care, as well as for the family and caregivers. Financial advice can assist to navigate a process that often involves unexpected change to health and lifestyle, and to gain an understanding of complex and interrelated legislation to assist with decision making.

Some of the more significant decisions to be made include keeping or selling the home, whether to make a lump sum payment towards costs of care, and how to establish an efficient structure of finances to reduce costs of care, invest available funds, reduce tax paid, maximise pension entitlements, and establish appropriate estate planning provisions.

From a practical perspective such advice processes can also include assistance in dealings with Centrelink (or DVA) to make disclosures of income and assets, required by government for the assessment of costs of care.

Major life events can be personally challenging and have a significant impact on financial well-being. Seeking professional financial advice at the time of such significant life events can provide invaluable support, assisting you to make informed decisions and secure your financial future. Professional financial advice can help to guide you through the complexities and empower you to achieve your financial goals. It is never too early or too late to seek professional advice to set a path towards financial security.

Collectively, we have expertise and experience in providing advice to clients across all above scenarios. If you wish to discuss your own circumstances in any such scenario, please contact us to arrange a time to meet and discuss.