I’m excited to have Aubrey Nestman here as my guest today. Aubrey is a financial planner. She’s the owner of Nestman and Associates with Ameriprise Financial Services. Today we’re going to talk about all kinds of different life transitions and how you can prepare for those transitions. Of course, there are transitions that we plan for in life and we welcome those transitions. Then there are other transitions that happen that no one saw coming. With a good financial plan, you can be well prepared and learn better how to navigate those circumstances

Understanding Life Transitions with Financial Planning

Jennifer Hargrave: Today, we’re diving into the significant life transitions that everyone plans for. Aubrey, can you share what you commonly see in your practice?

Aubrey: Absolutely, Jennifer. In my practice, I encounter clients at various pivotal moments of their lives. These include joyous occasions like landing their first job after college, entering into marriage, and the life-changing experience of welcoming a new baby. As life unfolds, these individuals often face other significant transitions such as career shifts, perhaps moving from one industry to another or climbing the corporate ladder, which may involve relocating geographically and adjusting to new financial realities. Eventually, these transitions culminate in the planning for retirement, which is not just about ending a career but about transitioning into an entirely new phase of life with its own financial demands and lifestyle changes.

The Role of a Financial Planner in Managing Transitions

Jennifer Hargrave: How does working with a financial planner help individuals navigate these transitions?

Aubrey: Think of me as the GPS for my clients’ financial journeys. They decide where they want to go – it could be a short-term goal like buying a house or a long-term goal like securing a comfortable retirement. My job is to map out the most efficient route to get there. We consider all possible paths and choose the one that best suits their financial situation and personal goals. This process involves thorough planning, strategizing, and adapting to any roadblocks or opportunities that might arise along the way.

Engagement in Financial Planning

Jennifer Hargrave: It’s common for one spouse to take a backseat in financial planning. How do you engage both partners in the process?

Aubrey: That’s a great point. In many relationships, one partner might naturally gravitate towards handling finances, but it’s crucial for both partners to be involved. I try to engage the less active partner by making sure they understand that their input is valuable. Whether they’re in the driver’s seat or the passenger seat, their perspective on the journey is important. We aim for collaborative meetings where both partners can express their views and make joint decisions. This ensures that the financial plan reflects shared visions and goals, fostering harmony and mutual satisfaction in their financial lives.

Overcoming Overwhelm in Financial Decision-Making

Jennifer Hargrave: Many hesitate to work with a financial planner because they feel overwhelmed or fear they lack the knowledge. How do you address this?

Aubrey: This is a common concern, and I address it by fostering an open and inclusive dialogue. I emphasize that there are no stupid questions. Everyone starts somewhere, and my role is to educate and guide my clients through the complex world of finance. We discuss what matters most to them, explore their options, and I provide clear, actionable advice that demystifies financial jargon. This empowers them to make informed decisions and become more confident in managing their finances.

The Importance of Flexibility in Financial Planning

Aubrey: Financial planning is inherently dynamic. It’s not about rigidly sticking to a set plan, but rather about remaining flexible and responsive to life’s unpredictabilities. Whether it’s an unexpected job loss, a sudden illness, or even positive surprises like an unexpected inheritance, plans can change. My role is to help clients pivot and adjust their financial strategies to accommodate these changes without losing sight of their long-term goals.

The Value of Professional Financial Guidance

Jennifer Hargrave: Aubrey’s insights highlight the critical role of proactive financial planning. Viewing a financial advisor as a navigator helps individuals and families steer through life’s various phases confidently and securely.