Life changing events? Dealing with the consequences and implications
Important, difficult financial decisions often have to be made following life changing events which effect both yourself and your family. These are often made with little time to consider the potential long-term consequences. It is essential that these decisions are made after having considered the implications.
Below are some events which you may encounter in the future.
Divorce
This can be a very emotional time. Two individuals having been together in partnership, over perhaps a long period of time, will have brought together existing individual assets and purchased new ones together. These will now have to be returned to individual ownership.
Ensure you minimize the costs involved with the process. Do not allow the taxman or lawyers to excessively benefit from the separation!
Consider the longer-term implications on both parties and any children. What are the likely consequences in the future? How can unexpected implications be avoided later?
Planning and saving for long-term care
Parents or other relatives may at some time require more care than the family can provide. This will likely result in arranging for care at home or a move to a care home.
It is important to consider saving to provide for long term care. Review the cost of care homes and how these can be paid for. You need to ensure these are affordable when being added to other current outgoings.
Receiving a large sum of money
You may receive a large sum of money from one of many sources. An inheritance, sale of a business, compensation claim or lottery win! This should be an exciting time. However, it can also be considered daunting, especially if this is the money you plan to live off for the rest of your life. Therefore, in these circumstances extra care needs to be taken in actions agreed.
Do you want an income from the money, to simply let it grow or a balance of each? Consider required returns. Do you want the money to just provide for yourself or for your children and future generations later?
Dementia, disabilities and life-limiting illness
What will be the effect on the diagnosis of a life shortening illness, disability or mental illness such as dementia on you and your family. What will be the effect on the family finances to provide for the care required? Quick actions are necessary at this time especially if the illness will cause a loss of self-capacity.
Enjoying as much time as possible with loved ones will be very important. You will not wish to get overrun with administration. Therefore, discuss with the whole family the situation. Ensure everybody understands big decisions made now, will be difficult to change later. Ensure all the legal requirements are covered. Respect the needs and wishes of the party who is suffering, even after their subsequent death.
Death and bereavement
Death of a loved one, causes great uncertainty as to how the future will look. You will have to take many actions and make many decisions which you have probably previously had little experience.
In addition, you will be under pressure to make quick decisions. However, it is important you understand the longer-term implications. Make sure things are done on a gradual basis and that you understand each stage of the process before taking action. Ensure you understand what impact decisions made now will impact on the future.
Author Bio
Richard Heath
Richard has over 40 years of experience within the Financial industry. His extensive knowledge of underlying financial services and products made him one of the most recognized financial planners in the French-speaking area of Switzerland, where he advises clients on investments, retirement planning, estate planning and many more financial milestones. He would also be delighted to undertake a confidential review and assessment of your individual circumstances. For more advice please contact Richard Heath, Financial Planner at Blackden Financial based in Geneva.
Telephone +41 22 755 08 00
Email
rh****@bl***************.com
Website: www.blackdenfinancial.com
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