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Posted: April 27, 2012

A financial transition checklist

Life events that could alter your investment plan

Jeff Nelligan

The potential for change is one of the few constants in life. Whether your circumstances evolve unexpectedly or as the result of careful planning, you may have to alter your investment strategy. The following are transitional events that may present opportunities or savings obstacles:

Changing jobs -- If you change jobs or get promoted and receive a salary increase, consider investing at least some of the difference for your long-term goals. You won't miss the money if you invest it right from the start.

Tying the knot -- The decision to marry or remarry could raise a variety of questions about your portfolio and financial plans. Will your combined assets provide enough income for two retirements? Will the need for just one primary residence free up income? If so, you may be able to increase your investments. Divorce also raises financial questions. For example, will you need to invest more aggressively to meet the cost of retirement on your own?

Adding a family member -- The addition of a newborn to your family could signal the need to start planning for someone else's future. Aside from the usual expenses of rearing a child, there's the cost of an education to consider.

Emptying the nest -- Many parents with grown children often enjoy a "parental bonus" after their children leave home. If you anticipate a parental bonus, consider investing at least part of it for your retirement needs.

Caring for Aging Relatives -- The need to support aging family members, possibly at the same time you're caring for children of your own, could force you to revise your investment plan to pursue more income for today's needs or capital appreciation for tomorrow's.

These are just some of the circumstances that can alter your life -- and your investment plan. For assistance adjusting your portfolio accordingly, consult a qualified financial professional for strategies that can help your investment plan overcome change.
 

Jeff Nelligan is Senior Vice President of Wealth Management for Morgan Stanley Smith Barney in Denver. He is a Certified Financial Planner™ and Investment Management Consultant focusing on comprehensive wealth management – financial planning, asset management, retirement planning, education planning, lending, trust services, and estate plan implementation. If you’d like to learn more, please contact Jeff at(303) 572-4034 or toll free: (800) 477-3041 x4034. Email Jeff at jeff.nelligan@mssb.comor visit his website at http://www.fa.smithbarney.com/jeff_nelligan/.

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