While you cant prepare for everything, planning as much as you can for key moments in life can ease financial anxietyand help you feel confident about the future.Heres how to tackle some of lifes big changes.1. An empty nestThere comes a time in many parents lives when their children move out of the house permanentlyand it can be emotional. But its also an opportunity to reassess financial priorities. Some ways to do this may be to examine your monthly budget and eliminate items no longer needed, such as additional car insurance premiums or underutilized cable channels.Once this new budget is in place, consider long-term financial goals and make changes accordingly, such as increasing the amount of savings as retirement approaches. For IRA owners older than 50, the IRS allowscatch-up contributionsto retirement savings accounts, up to an annual maximum of $24,000 to a 401(k), and $6,500 to an IRA.2. An unexpected medical eventMedical expenses top Americans list of financial worries. According to a 2017Gallup survey, 54% of people are concerned that they wont be able to pay their medical costs if they have an accident or develop a serious illness.The first line of defense against a large medical bill is, of course, a comprehensive health insurance plan. But since most plans have additional out-of-pocket costs, one option to discuss with your advisor is saving for health expenses in ahealth savings accountorflexible savings account. These accounts, set up through an employer, allow a pre-tax deduction of money from an employees paycheck for medical and dental costs.Consider other types of insurance, like short-term disability or critical-illness insurance, which can be financial lifelines in the case of a serious medical event.Remember to also factor healthcare costs into overall retirement planning. A 65-year-old couple could need as much as $349,000to payhealth expenses in retirement, according to a January 2017 report fromEmployee Benefits Research Institute.3. Approaching retirementRetiring comfortably is a common goal, but making that dream a reality requires careful planning. Consider funneling as much money as possible toward retirement savings while youre still working, especially during those final years when earnings are likely higher.This is also the time to think about additional protection for money already set aside. The closer retirement gets, the more vulnerable assets may be to a market downturn.Review your portfolio with your financial advisor to make sure youre not takingunnecessary risks with your retirement savings. Discuss your risk profile with your advisor to ensure it aligns with your retirement goals. You may consider discussing how a guaranteed source of income, such as an annuity, may fit into your plan.Some annuitiesoffer adegree of protection if markets decline, while still letting you take advantage of market growth.4. Losing aloved oneIts impossible to prepare emotionally for the loss of a spouse or parent, but you can take steps to be ready financially. A well-crafted estate plan canease some of the stress duringa difficult time.Update your estate plan periodically so it accurately reflects you and your spouses wishes, and encourage your parents to do the same. A life insurance policy can provide financial security and help to replace lost income.Dont hesitate to ask for help from people such as financial advisors, attorneys, and tax accountants. These professionals can offer advice and support.Its not always easy to talk to loved ones about death, but bringing the family together for a frank discussion about everyones wishes can go a long way toward minimizing future stress and anxiety.5. Agrowing familyThere are few moments more joyful than welcoming a new grandchild, niece, or nephew to the family.And for many people, this moment means helping extended family members financially. With the cost of college increasing, contributing to their education might be a great way to support them over the long term. Talk to your advisor about education savings options such as a529 plan with your grandchild, niece, or nephew as the beneficiary. These plans allow investments to grow tax free, without a tax on withdrawals, as long as the money is put toward educational expenses. Different states offer different plans, socompare options. Just remember that contributions to a 529 plan are subject toIRS gift tax rules.Think of every new life event as an opportunity to review your financial and estate plan, assess your priorities, and be sure that you are making the best decisions for you and your family.This post is sponsored by Brighthouse Life Insurance Company, Charlotte, NC. 28277.Any discussion of taxes is for general informational purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax, or accounting advice. You should confer with their qualified legal, tax, and accounting advisors as appropriate.Diversification cannot eliminate the risk of investment losses.In applying the information provided on this website, you should consider your other assets, income and investments. Talk to your advisor.The material on this website should not be interpreted as a recommendation or as fiduciary investment advice by Brighthouse Life Insurance Company, Brighthouse Life Insurance Company of New York or Brighthouse Securities, LLC. Brighthouse Financial and its design are service marks of Brighthouse Financial, Inc. or its affiliates.Join the conversation about this story
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