The Trust Company provides a multi-dimensional approach to planning your future. After all, your goals and dreams are far from one-dimensional. Polly Reynolds, CPA, CTFA and Vice President and Trust Officer for the Trust Company in Columbia, Missouri, advises clients every day about the affect common life events may have on their financial plans. “When people get married, I am always talking to them about their combined income. When people are single, their taxes are withheld based on what they earn individually,” she says. “Once married, each partner having taxes withheld based on their respective earnings may not be enough to cover the total tax liability of both incomes, which may push them into a higher tax bracket. Making sure their tax withholdings are sufficient prevents them from incurring a penalty come tax time.” Polly also talks with newly married couples about life insurance, plans for paying off debt, and having an adequately funded emergency plan. “Whether a person is married or single, he or she needs to have an emergency fund that contains enough money to cover three to six months of living expenses,” she says. “If someone loses a job, they need to cover expenses and still live their life. Having an emergency fund in place prevents them from putting groceries and other expenses on credit cards that may sit there accruing interest for a number of months until they’re able to pay them off.” Long-Term Financial Goals are Moving Targets It’s important to consider how a life event affects long-term financial goals. You may want to develop new goals or alter existing ones. A job change can affect your retirement saving goals if your income changes drastically or if you invest in a 401(k) and then neglect to move it over after you leave, consolidate it under the care of one advisor, or rebalance it regularly. If you are married and living in an apartment, for example, you may decide you want to buy a house; a financial advisor can help you figure out how to get into the kind of house you want, breaking down the overall goal into monthly saving targets. If you have a baby, you may need to alter the amount or type of life insurance you have or start putting away money for her future college education. “There’s no better time to start a 529 or UTMA account than when your children are small,” says Polly. One of the tougher life events to handle emotionally as well as financially is the long term or critical illness of a parent. “Some will decide to quit their jobs to take care of the parent,” says Polly. “You have to be careful to think about the long term implications of that decision. If you have an emergency fund in place, maybe you can take a leave of absence from work and rely on those three to six months of living expenses to care for your parent, as opposed to leaving your job altogether and putting yourself in a situation where you become a burden on your children later in life.” At The Trust Company, we seek to understand the many facets of your individual situation, and all the complexities that can affect your attainment of financial peace of mind. Together, we will make a plan that meets your unique needs and sets you on a path toward your financial goals. Contact us today to start the conversation.