Are you financially prepared for life's milestones?
(NC) Life is full of milestones, such as buying a home, having a baby and retiring from work. These milestones can have an impact on your financial plan, but by planning ahead, you can focus on the joy they bring instead of having to worry about the price tags that come along.
“As you would plan for personal and professional goals, you need to be just as diligent with your financial plan,” said Lee Bennett, Senior Vice President, TD Wealth Financial Planning. “A financial planner can show how to optimize your financial decisions – and help you prepare for life's big events.”
When it comes to financial planning for different life stages, Bennett shared the following tips:
Purchasing your first home – Create a plan to ensure you can cover expenses incurred when becoming a homeowner. A financial planner can help you look at the bigger financial picture and identify ways to increase savings and improve your overall cash flow, to save for a down payment and other costs like property tax, insurance, and legal fees.
Having a baby – The cost of a baby's early years can be daunting, which is why it's important to create a budget for things like furniture, clothing and diapers. A financial planner can help you prepare for parental leave, including how to budget on a potentially reduced income and daycare costs when returning to work. He or she can also help you stay on track with longer-term goals, such as saving for a child's education.
Planning for retirement – It's important to think about the lifestyle you want during retirement and choose an investment strategy to help achieve those dreams. A financial planner can help you choose products that are right for your time horizon and objectives, while maximizing investment returns and managing your tolerance for risk.
“It's important to think long-term while planning for each life stage, but it's equally important to regularly revisit your financial plan to make adjustments. A professional can help you feel confident making decisions at any milestone,” Bennett added.
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