Planning for Stages of Life
by Jonathan Springstead, Professional Financial Planner
We all have times in our lives when we let time get by us. It seems we blink and realize we are down the road a bit farther than we quite realized. Sometimes life is quicker than others and sometimes tragedy strikes. As one does, when faced with a tragic loss, you tend to grieve and reflect. During some reflection time with friends, I couldn’t help but ask them some basic questions since they are all married, and some of them have children. I asked, do you have Life Insurance? Do you have Disability Insurance through work? My demographic is what some call the “sandwich generation.” They may find themselves taking care of their parents and having children entering college at the same time. This can affect finances and family.
I meet with people and educate families in all stages of life. As such, I look for their potential sources of income, which I refer to as ‘buckets’ or ‘faucets’. Some of these faucets can be turned on at a certain age like Social Security, and some can be turned on or off such as taking money from a savings or retirement account. A young family facing a tragedy is typically in the stage of life where they are building up wealth and may be carrying debt. The life insurance faucet is an important one to have and could help ease the financial burden of the family. For some individuals who are retired, long-term care insurance is a faucet they should be educated about. For those who are working their way to retirement, a goal would be to have four or five buckets in place. Social Security, sometimes a pension, retirement accounts, savings, and real estate investments can all be buckets you can access with most being available to turn on higher or lower to produce income.
A good Financial Advisor will help you understand how to capitalize and balance these buckets to best work for you. They can educate you about decisions you may face like– What is the best time to take Social Security for each person? What is the best option for my Pension? Or, what strategies can I have for my 401(k) or savings accounts? Knowing ahead of time can protect you when a life circumstance changes the trajectory. If you have a conversation with a financial advisor, you should come out of that conversation with a better understanding of all the buckets in your life and with options to capitalize on each one in the various scenarios that are pertinent to you and your family.
Feel free to reach out for a conversation to guide you on your journey. If you have any questions or would like to schedule an appointment , please call my office at (509) 665-8349. It would be my pleasure to help.