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5 Life Events That Can Impact Your Financial Plan

One thing we can be certain of in life is that change happens. Sound financial planning involves understanding the basic financial considerations arising from each of these major life events, whether expected or unplanned. This article highlights 5 of these life events and how they can impact your financial situation and financial plan.

1. Marital Status

When couples tie the knot, it’s easy to forget the financial implications amid the excitement. Combining finances can be complicated. It’s important to plan how you will manage finances together and potentially put some financial safeguards in place. Communication is key and by asking each other important money-related questions prior to marriage can help prevent larger disagreements at a later point in time.

As a result of these discussions, you may wish to consider drawing up a prenuptial agreement prior to getting married. A prenuptial agreement protects your assets, providing you and your partner the freedom to decide who will keep what from their assets in the case of a divorce. The agreement states what you own when you enter the marriage and the financial outcome in the case of a split.

2. Having a Child

Having a child can be one of the most expensive life changing events. Large expenses can include childcare and health care. Secondary education can also require  significant outlays making it helpful to start saving early if you plan to help your child with such expenses.

3. Divorce

Divorce is a major life event no one wishes to experience. However, it is important to understand this life event’s impact on your financial plan so you can be prepared. Changes can come in the form of legal fees, alimony payments, child support payments and changes in your income, which can all impact your retirement plan.

4. Inheritance

Receiving a lump sum of money carries with it financial responsibilities. These include potential changes to your spending habits, charitable contributions you intend to make, and tax payments, among others. You may also wish to consult a trusted financial professional on how to manage the money that you have inherited if you wish to protect, preserve and grow the amount for future generations.

5. Retirement

Retirement can be thought of as a pivotal financial moment in most people’s lives. In fact, you may wish to plan early to make sure you are saving enough in your peak earning years for when you retire. This is particularly important as your retirement could last a few decades and it is difficult to predict what the cost of your health care (or the cost of anything else given today’s inflation) might be in your retirement years.

Engage the Professionals

It can be scary to think about all the major life events that can or will occur. That is why trusted, experienced financial professionals can become your support system for life’s major events. With the right professionals guiding you, you can have peace of mind knowing that you have someone to turn to for financial advice when life happens.

Investing with Bloom Investment Counsel, Inc.

Established in 1985, Bloom Investment Counsel, Inc. is a Toronto-based independent, privately-owned boutique investment management firm with experience in managing in excess of $2.5B in assets over the years.

If you are looking for an investment management service that is private and personalized to meet your specific investment goals and objectives such as having an additional stream of income for your retirement years or for philanthropic purposes, we may be who you are looking for.

Bloom Investment Counsel, Inc. works closely with clients, and their other trusted professional advisors if desired, to develop actively managed, customized investment portfolios to protect, preserve and grow wealth. Our long-standing clients include wealthy individuals, family offices, foundations, corporations, institutions and trusts.

Working with a trusted financial professional can go a long way in dealing with life events that impact your financial plan. Connect with us todayCall us at +1-416-861-9941 or email us at to learn how we can help you protect, preserve and build long-term wealth.

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This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.

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