Ready for Life transitions?
– Shalini Dhawan, Financial Planner, Plan Ahead Wealth Advisors.

 

 

Harsh and Harshita were our usual client couple, happy go lucky, no worries, successful in their careers, double income, company accommodation, company car, company perks, and you name it.

As they came in for the customary annual plan review meeting, they seemed a little distracted. This was not their usual selves and obviously, the planner in me quickly moved to FPG mode (friend , philosopher, guide) to understand what’s happening and where I could help. After some chatting, I gathered Harsh had quit his job as his organization was moving to South India for consolidation reasons. Harshita was apprehensive as they were expecting a baby and she was planning to take a break for family and care giving reasons. Obviously as informed clients, they understood their financial plan and investments needed to be looked at afresh.

Their case is no different from the many life transition situations that we face in numerous client interactions. Infact today, more than ever, most clients are facing multiple life transitions without even realizing so.

 

Some examples of life transitions are:

  • Children moving out of home for education reasons / marriage
  • Becoming a parent
  • Job losses / Job changes
  • Becoming an entrepreneur
  • Divorce
  • Widowhood
  • Sudden inheritance
  • Retirement
  • Dependent parents and long term care
  • Sudden illnesses and associated medical expenses
  • Sudden Demise of family member

These transitions also naturally tend to unsettle your financial plans at different points. The only way life transitions can be actually managed is by putting thought to what surprises life may throw up at you and be prepared for these transitions. Essentially a Plan B.

In all cases of life transitions, there is a commonality. The commonality is that whether one realizes or not, these life transitions affect your finances. Even if there is no direct impact, these life transitions usually tend to affect one emotionally thereby leaving lesser time and mind space to focus on your finances.

Besides emotional support from family and friends, the client’s own preparedness would be the other weapon to take on life’s surprises. If you are already going through one of these transitions or foresee it in the near future, please talk to your financial planner about it. If not, prepare for it anyways.

These transitions also naturally do tend to unsettle your financial plans at different points. Although I don’t profess to be a crystal ball gazer and don’t expect clients to be one, the only way life transitions can be actually managed is by putting thought to what surprises life may throw up at you and be prepared for these transitions. Essentially a Plan B.

Besides emotional support from family and friends, the client’s own preparedness would be the other weapon to take on life’s surprises. If you are already going through one of these transitions or foresee it in the near future, please talk to your financial planner about it. If not, prepare for it anyways.