Life Transitions Open Complicated Doors

What You Need to Know

Lifequakes happen three to five times in the life of a typical person.
Some are happy. Some are not.
During transitional periods, simple solutions may look like the best solutions.

Working in financial services, I appreciate that the only constant in life is change.

I see it firsthand every day.

And while bad experiences tend to work themselves out with time, the continual series of life phases requiring transitions can often feel overwhelming.

Bruce Feiler, author of “Life is in the Transitions: Mastering Change at Any Age,” interviewed hundreds of people about their life transitions. His findings showed a major life change occurs every 12 to 18 months, on average.

Huge ones — what Feiler calls “lifequakes” — happen three to five times in each person’s life.

As Feiler explains, some lifequakes are voluntary and happy occasions, while others are involuntary and unwanted.

Life transitions most often fall into a few general categories — like marriage, death of a loved one, divorce, or moving to a new home.

In reality, however, these transitions can appear different for everyone.

And many are not this “typical.” Your role as a financial professional may be to limit the scope (and impact) of fundamental life transitions for your clients.

This is where financial planning conversations begin.

Let’s face it … planning for retirement can already be complicated. Helping clients plan for retirement alongside their emotionally driven transitions can be downright daunting.

Given the uncertainty many clients navigate, financial professionals may wonder how best to proceed, how far into the future to look, and what they could do now to set their clients up for long-term success.

What do you do when you’re in the middle of a “transition period” but need to make a financial change? Where do you turn when you may need your assets in the not-so-distant future, but not quite yet?

A short-term mindset can create unique needs.

When a client is planning for retirement, it’s imperative to think about the long term, and a comprehensive plan should include strategies to help clients live comfortably in retirement for many years to come.

But those in transition often call for a more short-term approach.

This could mean a client is experiencing a “typical” transition like receiving an inheritance or proceeds from a home sale … or something less common and more unique to their situation.

They may also be “stuck” in transition.

Perhaps they’re close to retirement and simply burned out on making decisions.

This type of client may be tempted to park their money and let it grow while they fine-tune their next steps.