Review financial strategies after life events - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Review financial strategies after life events

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Tuesday, November 6, 2012 2:49 pm

If nothing ever changed in your life, you could probably chart your financial and investment strategies and then forget about them. But your life is full of changes — and many of them will require you to take a new look at how you save, invest and protect your family.

Let’s run through some of the most common milestones in life and see what sort of moves you might make in response:

• Marriage — It sounds obvious, but once you’re married, you have to stop thinking in terms of “one” and start thinking of “two” in most aspects of your life — including your finances. For example, if you are an aggressive investor but your spouse is more conservative, you both may need to compromise and choose an investment strategy that’s “down the middle.” At the same time, you’ll want to set some common goals, such as saving enough for a down payment on a home.

• Children — When you have children, you have to protect them today — and invest for their future. Your first step, then, might be to purchase life insurance. You can typically buy a term life policy at very reasonable rates.

The exact amount of coverage you need depends on your individual situation, but you’ll probably want at least enough to pay off your mortgage and send your children to college should anything happen to you. And to protect your income, you might want to consider disability insurance. Finally, it’s never too soon to start saving for college. You might want to consider opening a tax-advantaged account, such as a Section 529 college savings plan.

• Job changes — When you leave a job, you may well have an important decision to make about your 401(k) or other employer-sponsored retirement plan. If you don’t need the money right away, you might want to avoid cashing out your plan, because you’ll likely face an immediate tax bill — and you’ll have fewer resources for retirement. Consequently, you may want to roll your 401(k) to an IRA or your new employer’s plan, if it allows such transfers. Before taking action, consult with your tax advisor.

• Remarriage — If you ever remarry, you may need to change the beneficiary designations on your 401(k), IRA and other investment accounts. You also may need to work with your attorney to revise your will, living trust and other documents related to your estate plans.

• Retirement — For many decades, you saved and invested for your retirement. Once you retire, however, you should move away somewhat from the “accumulation” phase and start thinking instead of how best to manage the money you have accumulated. That means you’ll need to decide when to start taking Social Security and how much to withdraw each year from your various retirement accounts, such as your 401(k) and IRA. A professional financial advisor can help you develop a withdrawal rate that’s suitable for your individual situation.

You’ll encounter many important events on the road of life. By making the right financial moves along the way, you can help make the journey more pleasant.

• This article was written by Edward Jones for use by Ahwatukee Foothills Edward Jones Financial Advisor Kim DeVoss, CFP. Reach her at (480) 785-4751 or Kim.DeVoss@edwardjones.com.

More about

More about

More about

  • Discuss

PHOENIX magazine Summer Getaways – Sedona

PHOENIX magazine’s annual Summer Getaways issue came out in May and I’m happy to finally show these shots I took last fall! The early release …

Published: July 1, 2016 - 4:58 pm @ https://dianaelizabethblog.com/2016/06/phoenix-mag…

Arizona Theatre Company Still Needs $1 Million to Stay Afloat

Lynn Trimble A A Two donors responded with significant gifts after Arizona Theatre Company's recent announcement that it would need to raise $…

Published: July 1, 2016 - 4:41 pm @ http://www.phoenixnewtimes.com/arts/arizona-theatr…

Hungry? 15 new Valley restaurants that opened in June

PHOENIX - A bunch of new food spots opened up around the Valley last month.

Published: July 1, 2016 - 4:30 pm @ http://www.abc15.com/entertainment/events/hungry-1…

The 30 Safest Cities to Raise a Child

Raising children is stressful enough without having to worry about their safety. Luckily, there are a number of cities across America that are…

Published: July 1, 2016 - 3:40 pm @ http://www.safewise.com/blog/safest-cities-to-rais…

Amazon: what to watch in July

Amazon’ing and chilling this month? There’s plenty to get your teeth into on the site over the next few weeks. Here are the highlights – movie…

Published: July 1, 2016 - 3:27 pm @ http://www.empireonline.com/movies/features/amazon…

Movies in a Minute: 'The Big Friendly Giant'

I went into “The Big Friendly Giant” — “The BFG” for all those who swear by the book — pretty blind and, I have to admit, it really doesn’t li…

Published: July 1, 2016 - 3:26 pm @ http://ktar.com/story/1153746/movies-in-a-minute-t…

Phoenix City Council OKs property-tax hike for residents

PHOENIX - For the first time in 20 years, property taxes are going up for Phoenix residents. The Phoenix City Council voted 5-4 Friday to appr…

Published: July 1, 2016 - 3:11 pm @ http://www.abc15.com/news/region-phoenix-metro/cen…

Partybaby face forward in their 'I Don't Wanna Wait' video

Impatient ‘til the end, Partybaby’s new ‘I Don’t Wanna Wait’ video wastes no time with pleasantries. All 100mph pace and massive, sky-scraping…

Published: July 1, 2016 - 3:12 pm @ http://diymag.com/2016/06/30/partybaby-i-dont-wann…

Attorney general Loretta Lynch regrets meeting with Bill Clinton

PHOENIX - Attorney General Loretta Lynch acknowledged Friday that her meeting with Bill Clinton while his wife is under federal investigation …

Published: July 1, 2016 - 2:57 pm @ http://www.abc15.com/news/region-phoenix-metro/cen…

Here's What's New To All Of The Streaming Platforms In July

It's going to be hot this July, so instead of sitting in traffic on your way to the beach or melting while hiking, why not just Netflix (or Am…

Published: July 1, 2016 - 2:57 pm @ http://laist.com/2016/07/01/streaming_guide_july_2016.php

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…