Don’t let life changes derail your finances

5 Tips for Reviewing Your Finances During a Major Life Transition


Life is full of transitions – some planned, others unexpected, many joyful, a few overwhelming. Together, they encompass your life story and shape who you become.

It can be difficult to think about financial planning when a transition occurs because you’re focused
on other things. However, this is when it’s especially important to stay in financial control.

These five tips can help you keep your finances in order when you’re going through a major life transition.

1 PRIORITIZE YOUR IMMEDIATE FINANCIAL NEEDS
Wait until you’re emotionally ready and in the right mindset to make significant financial decisions, such as whether or not to sell your house. In the near term, focus on your immediate financial concerns, including paying your bills, revisiting your budget and claiming benefits if you’ve lost your spouse.

If you are getting divorced, an immediate concern is getting your fair share of the assets. To assess your situation, gather important financial paperwork such as bank and credit card statements, tax returns, retirement and investment account statements, insurance, loan and mortgage information. Also, change your passwords to maintain your privacy and be vigilant about checking your credit report. If you have minor children, make sure you have life insurance and an emergency fund.

2 REASSESS YOUR FINANCIAL GOALS
A major life event is likely to alter your long-term financial game plan. “Once you start adjusting to the nuts and bolts of your new financial life you can think about the bigger picture,” according to Luma Wealth Advisor, David Rubis. For example, if your family is growing, you may want to add college savings to your wealth plan. If your marriage has ended, it’s time
to re-evaluate your asset allocation plan’s risk and return objectives since your investment strategy needs to align with your new situation and
long-term needs.

3 UPDATE YOUR ESTATE PLAN INCLUDING BENEFICIARIES
Review your estate plan periodically and whenever you experience a change in circumstances. This includes carefully checking the beneficiary designations on all financial accounts, including your life insurance policy and retirement savings. There have been many unfortunate stories of people who accidentally leave significant assets to the wrong person, typically an ex-spouse, whose name remained on a beneficiary form.

4 LEAN ON YOUR KNOWLEDGEABLE ADVISORS
When life changes, it can be helpful to have the empathetic support of advisors who listen and understand your financial issues. “Having the right divorce attorney, a CPA who really understands your most recent tax returns and investments, and a financial advisor who can guide you through it all, is vital for getting through a life transition such as divorce,” according to Luma Wealth Advisor, Michelle Taylor.

Your Luma Wealth team will collaborate with your outside advisors, including your CPA and attorney. We’ll work with you to adjust your wealth plan to your new situation and to help make your financial journey easier.

5 BENEFIT FROM A SUPPORTIVE COMMUNITY
Even when it’s for the better, change can be stressful. It’s a good idea to take care of yourself by eating right and getting plenty of rest and exercise. Your friends, family, religious advisors and Luma Wealth advisor can offer non-judgmental support.

In addition, Luma Wealth offers you valuable resources and community. Throughout the year, we host a series of educational and social events that help build connections. We’ll also support you with information and resources, so you gain the confidence you need to take control of your financial future.


Divorce is a common life transition.  In 40% of marriages at lease one spouse has been married before.

  • 60% First Marriage for both partners
  • 20% Remarriage for one spouse
  • 20% Remarriage for both spouses

Source: Pew Research Center Analysis of 2013 American Community Survey


Do you have a friend who is going through a divorce?

Find out how Luma Wealth can be a valuable resource.


Stay in control of your finances
You don’t have to go through it alone. Turn to yourLuma Wealth advisor for guidance and support whenever you’re experiencing a major life transition.
For more information, call Luma Wealth, toll free, at 866-995-6191, email info@lumawealth.com or visit our website.

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