Ep 36: 5 Life Events That Spark Major Financial Changes
Sometimes events happen in life that make it really important for you to carefully assess your financial situation. Let’s explain why these five major events are usually a good reason for a financial review.
The Reality of the Matter:
As we’ve learned in 2020, you never know what life will bring your way. No matter how well we plan and how organized we are, there will be events in our lives that will have a large impact on our finances and many of those will come without any warning.
On this episode of the Retirement Reality Podcast, let’s talk about five life events that are going to spark financial changes for you and your family. At the minimum you’ll want to sit down with an advisor and make sure everything is in order. In some cases, you might have to make significant changes to your retirement plan.
Mike Kojonen is going to tell us about each of these scenarios from an advisor’s perspective. These are difficult conversations to have for the most part but they will make your life much easier when they’re taken care of. For each of the five events, we’ll explain the potential impact it could have on you and the adjustments that you might need to make.
Hopefully this will give you a starting point should you ever come across any of these situations. An advisor will always be there to help you and now you’ll have the awareness to review your finances.
The first portion of the show today is a Financial Dictionary segment, where Mike will explain a financial product that you’ve likely heard about but might not know all the details. Our focus now is on the adjustable-rate mortgage, or ARM as you’ll often see it written.
Mike has a background in real estate so this is something he has a lot of experience with and followed closely during the 2008 financial crisis. We’ll start by explaining how the mortgage works and then he’ll explain why he’s not a fan of this anymore. There are a lot of things to consider and the strategies have changed as interest rates have dropped.
It’s a busy show again so let’s get it started.
1:12 – Mike is busy with spring projects and getting life back to normal.
2:44 – Financial Dictionary: What is an Adjustable Rate Mortgage?
6:21 – Mike isn’t a fan of these mortgages and this is why.
8:33 – Let’s get into the main discussion.
8:55 – Life event: Moving to a new job (planned)
10:21 – Life event: Changing jobs (unplanned)
12:08 – Life event: An inheritance
14:02 – Life event: A serious medical issue
16:07 – Life event: Death of a spouse
Thanks for checking out the Retirement Reality Podcast. We’ll talk to you again next week.