7 Life-Changing Events a Financial Advisor Can Help With – Forbes Advisor – Technologist

Major life milestones, like getting married or buying a home, can significantly impact your finances. That’s why having a solid financial plan in place is important to help smoothly navigate these changes.

Yet, many households in the U.S. aren’t financially prepared for these big moments. Over one in four Americans have savings below $1,000, and one in three struggle to cover $400 in emergency expenses, according to the Federal Reserve. This financial vulnerability can add stress to these already life-changing events.

This is where a financial advisor can be a valuable resource. Whether it’s helping you create a detailed financial plan for your family or understanding the tax implications of an inheritance, a financial advisor can provide guidance and support. Here are seven key life events where a financial advisor’s assistance can be especially beneficial.

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1. Marriage

Marriage combines two lives and two financial futures, so decisions about merging finances, managing debts and choosing insurance can impact your financial well-being as a couple. Since 40% of disagreements among long-term couples are often finance-related, sorting these details early can help reduce stress and conflict.
A financial advisor can help you talk about your mutual financial goals and assist in:

• Developing a joint budget
• Creating a long-term financial plan that aligns with both of your priorities
• Setting up joint accounts
• Updating beneficiary designations for estate planning
• Optimizing taxes as a married couple

Using an advisory matching platform like Datalign can help you find an advisor who specializes in finances for couples, providing the tailored support you need as newlyweds.

2. Buying a Home

With the average net worth of homeowners being 40 times higher than renters, buying a home is often seen as an essential step toward building wealth. However, it’s also one of the most complex as it involves affordability, mortgage options and tax implications.

A financial advisor can help you:

• Assess your financial readiness by evaluating savings, income and debt.
• Create a realistic budget that includes home-related expenses, property taxes, insurance and maintenance.
• Determine a comfortable home price range for your budget.
• Review your credit history and offer tips to improve your score.
• Advise on saving up for a down payment to avoid private mortgage insurance.
• Evaluate mortgage options to find the best fit for you.

3. Starting a Family

Welcoming a new baby brings a whole new set of financial responsibilities. From early planning to long-term education, there’s a lot to consider when planning for a family.

A financial advisor can help you:

• Create a new budget to accommodate a growing family.
• Review and update your insurance policies.
• Plan for your child’s education through savings plans like 529s and Coverdell ESAs.
• Understand your eligibility for family-related tax credits.
• Update estate planning and life insurance to help secure your family’s finances in unexpected incidents.

4. Career Transition

Navigating a career transition—whether changing industries, freelancing or climbing the corporate ladder—can impact your finances. This transitional phase typically involves abrupt changes in income streams, expenses and benefits, making it a good time to consult with a financial advisor.

Advisors may help evaluate job offers by analyzing the entire compensation package, including bonuses, stock options, healthcare benefits and retirement plans. They may also help you consider any potential tax implications—especially if relocation is involved—and can provide guidance on whether it’s best to roll over a 401(k) to a new employer’s plan or into an individual retirement account (IRA).

In some cases, a career transition may also lead to changes in risk tolerance and investment strategies—whether it’s due to income level changes or a desire for more conservative investments as you near retirement. A financial advisor can help assess your portfolio and recommend adjustments that align with your new goals and circumstances.

5. Navigating Divorce

Divorce can be an exceptionally challenging and emotional experience with big financial implications. The division of assets, potential child support, legal fees and tax considerations all require careful attention.

Partnering with a financial advisor can help you:

• Understand the long-term financial impacts of different settlement options.
• Manage the tax implications of selling shared assets.
• Manage any new or existing debts.
• Plan for potential changes in income and expenses.
• Reevaluate your retirement savings strategy, including any pension or retirement accounts that may need to be divided.

Choosing an advisor with experience in divorce financial planning is essential, and companies like Datalign can help connect you with a vetted advisor matched to your specific financial goals and needs.

6. Receiving an Inheritance

In addition to the emotional weight of losing a loved one, inheriting assets also brings a range of financial considerations.

Working with a vetted financial advisor can help you understand the tax implications of your inheritance and how to manage and allocate those assets. They can help you assess whether it makes more sense to sell or hold on to inherited property, how to minimize taxes on any income generated from inherited investments and how to incorporate these new assets into your overall financial plan.

If you’re interested in giving back or paying it forward with your inheritance, financial advisors may also help you explore options for charitable giving and legacy planning. This may include setting up a donor-advised fund, creating a charitable trust, making strategic donations to causes or creating a plan for passing your wealth on to future generations.

7. Starting a Business

With proper planning and support, you can increase your chances of success and potentially reduce the risks of entrepreneurship. To help your business establish a solid financial foundation, an advisor may assist with:

• Developing a thorough business plan that outlines your business goals, target market and competitive landscape.
• Exploring various funding options, such as small business loans, seeking out investors or applying for government grants.
• Establishing a realistic budget that accounts for startup costs, ongoing operating expenses and potential cash flow challenges.
• Choosing the right business structure to optimize tax benefits and liability protection.

Retirement planning should also be considered as part of your business strategy. Advisors can help integrate the business into your retirement plan, considering exit strategies like selling or passing the business on to family members.

Choosing the Right Financial Advisor

Whether you’re getting married, starting a new job or building a business, your financial advisor should have the expertise to guide you. Here are a few factors to consider when vetting potential advisors:

• Qualifications and credentials: Look for advisors with certifications from reputable organizations, such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA), which indicate a high level of expertise and commitment to ethical standards.
• Areas of expertise: Make sure their specialization, like retirement or tax planning, matches your needs.
• References: Request past client references and check their background on the SEC’s Investment Adviser Public Disclosure website.
• Fee structure: Determine whether they charge a flat fee, hourly rate or percentage of assets under management to see if it aligns with your budget and financial goals.
• Conflicts of interest: Ask about potential conflicts of interest, such as commissions from investment products, to make sure they prioritize your best interests.

For a streamlined approach, you can also consider using Datalign’s AI-enhanced platform. This free service matches you with a vetted advisory firm based on your financial goals and preferences. Once Datalign identifies a personalized match, you’ll have the opportunity to set up a call with the advisor. The initial consultation is free and without obligation.

Life’s big events deserve financial strategies that are just as significant, and partnering with a vetted advisor can help you turn live events into milestones of financial achievement.