Even for some of the worlds’ greatest baseball players, hitting an elite curveball can be a nerve-racking experience.
Facing some of life’s curveballs can be just as challenging. As a financial advisor, you know that helping clients deal with unexpected financial curveballs is a critical moment in your relationship.
From a surprising job loss, to a difficult divorce, or even caring for aging parents, these situations can quickly throw a wrench in anyone’s finances. But with your help, your clients can overcome these challenges and secure their financial future. So, let’s break down how you can help your clients deal with each of these situations.
Adjusting to a Job Loss
Losing a job can be a challenging time for anyone, but you can help your clients prioritize their essential needs such as groceries, mortgage, and utilities. You can also encourage them to cut out nonessential expenses temporarily and preserve their savings. Advise clients to use cash to make minimum payments and draw from non-retirement investments first if they must tap into their savings. Finally, remind them to resist the urge to put expenses on credit cards as it could create a debt obligation they can’t repay.
Dealing with a Difficult Divorce
Going through a divorce can be a stressful and emotional time for your clients. Help them by educating them about their finances and reviewing their investments, insurance, and savings for retirement and education goals. Encourage them to track their credit history to ensure their name isn’t associated with debt that is not theirs. Finally, advise clients to update their will, pay off or cancel joint accounts, and change beneficiaries on investments, retirement accounts, and insurance policies.
Caring for Aging Parents
The transition to “caring for your parents” vs. them “caring for you” can be jarring for many. Start by helping your client in creating a financial plan that outlines all of the potential expenses related to caring for aging parents. This should include healthcare costs, long-term care expenses, and any other financial obligations that may arise. Encourage clients to discuss their parents’ finances with them, including income, assets, and debts, to get a clear picture of their options.
With your guidance and these tips, your clients can navigate unexpected financial curveballs and secure their financial future. By providing support during these challenging times, you can help your clients achieve financial stability and peace of mind.
Feel free to contact our team at Oak & Stone today with any questions.